As of 2012, the

real estate industry Real may refer to: Currencies * Brazilian real (R$) * Central American Republic real * Mexican real * Portuguese real * Spanish real * Spanish colonial real Music Albums * ''Real'' (L'Arc-en-Ciel album) (2000) * ''Real'' (Bright album) (201 ...

Puerto Rico Puerto Rico (; abbreviated PR; tnq, Boriken, ''Borinquen''), officially the Commonwealth of Puerto Rico ( es, link=yes, Estado Libre Asociado de Puerto Rico, lit=Free Associated State of Puerto Rico), is a Caribbean island and unincorporated ...

constituted about 14.8% of the

gross domestic product Gross domestic product (GDP) is a monetary measure of the market value of all the final goods and services produced and sold (not resold) in a specific time period by countries. Due to its complex and subjective nature this measure is oft ...

, about 1% of all of the

employee compensation Compensation and benefits (C&B) is a sub-discipline of human resources, focused on employee compensation and benefits policy-making. While compensation and benefits are tangible, there are intangible rewards such as recognition, work-life and de ...

on the island and, together with finance and insurance (

FIRE Fire is the rapid oxidation of a material (the fuel) in the exothermic chemical process of combustion, releasing heat, light, and various reaction products. At a certain point in the combustion reaction, called the ignition point, flames a ...

), about 3.7% of all the employment on the jurisdiction.

U.S. laws providing grants and subsidies

A number of laws of the United States providing for real estate grants or subsidies extend coverage to Puerto Rico: * Bankhead-Jones Farm Tenant Act of 1937 *

Consolidated Farm and Rural Development Act of 1961 The Consolidated Farm and Rural Development Act of 1961 (P.L. 87-128) authorized a major expansion of USDA lending activities, which at the time were administered by Farmers Home Administration (FmHA), but now through the Farm Service Agency. Th ...

* Consolidated Farm and Rural Development Act of 1972 * Section 8 of the Housing Act of 1937

Regulations

Act 77 of 1964 regulates the business of

real estate Real estate is property consisting of land and the buildings on it, along with its natural resources such as crops, minerals or water; immovable property of this nature; an interest vested in this (also) an item of real property, (more general ...

for companies headquartered inside Puerto Rico, while Act 45 of 1980 regulates those outside of Puerto Rico.

Access control

Law No. 21 of 20 May 1987, amended principally by Law No. 156 of 10 August 1988 and Law No. 22 of 16 July 1992. (23 L.P.R.A., Secs. 64 et seq.); Regulation No. 3843 of Traffic Control and public use of local streets. In 1987, the Legislature approved Law No. 21 of 20 May to authorize developments and communities to control vehicular access for cars and public use of their residential streets, with the main purpose of providing citizens an additional tool for fighting crime and thus ensure their active cooperation in the fight against crime. The law also aims to improve the security and tranquility of communities so that residents can achieve healthy living and community interaction. The concept of Access Control implies that the public nature of residential streets is preserved, while residents are allowed to establish means for controlling vehicular traffic and public use, and thus ensure their own safety and cultivate an environment conducive to better living.

CRIM

The Municipal Revenues Collection Center (CRIM in Spanish) was created in August 1991 as part of a municipal reform with the primary objective of increasing the powers and economic capacities of Puerto Rico's municipalities.

Solid waste

*Law No. 24 of 8 June 1962 *law No. 13 of 2 October 1980 Reform (to assess or reinforce) * Property tax * Taxable value * Real estate * Fiscal or economic year Land Registry Number. Identification number of a property for tax purposes. It includes Municipality, Town, Map, Apple, Parcel, Tenant and landlord class or structure. Example: 18-03-040-059-034-06-xxx. *Exoneration *Extension *Residence

HOME of 1990

HOME is a program established under Title II, also known as ''

HOME Investment Partnerships Program The HOME Investment Partnerships Program (HOME) is a type of United States federal assistance that the U.S. Department of Housing and Urban Development (HUD) provides to states to create decent and affordable housing, particularly housing for low ...

'', of the Cranston-Gonzalez National Affordable Housing Act.Cranston-Gonzalez National Affordable Housing Act
Pub. L. No. 101-625, 104 Stat. 4079 (1990). This program provides (1) liquid assets in the form of cash (equivalent numbers); and (2) special guidelines for state and municipal governments to design proprietary strategies to take care of the necessities and problems in housing areas as defined by the Comprehensive Housing Affordability Strategies approved by the U.S. Department of Housing and Urban Development in 1990.

Law 10 of 1994

Law No. 10 of 26 April 1994 was established to regulate the business profession of real estate specialists for the

of Puerto Rico. The law countermands Law No. 139 of 14 June 1980 and Law No. 145 of 18 June 1980. It regulates the exercise of the profession of real estate broker in Puerto Rico and creates the Examining Board of Realtors. It also regulates transactions on the island by companies engaged in the sale of real estate located outside of Puerto Rico. The Rule of Ethics (''Reglamento de Ética'') is a regulation to implement Law No. 10 of April 26, 1994, the law to regulate the real estate business and profession of broker, salesperson, and real estate companies in Puerto Rico. *Law No. 10 Amendment - Law No. 118 - 26 September 2005 *Law No. 10 Amendment - Law No. 93 - 16 May 2006

Regulations of 1997

''The four (4)

dalet Dalet (, also spelled Daleth or Daled) is the fourth letter of the Semitic abjads, including Phoenician Dālet 𐤃, Hebrew Dālet , Aramaic Dālath , Syriac Dālaṯ , and Arabic (in abjadi order; 8th in modern order). Its sound value ...

regulations'' of April 3, 1997 established under the Roselló Administration: *No. 5568 - Course of Study Regulations for the Real Estate Profession *No. 5569 - Adjudicative Procedure Regulations *No. 5570 - Licensing Regulations *No. 5571 - Ethics Regulations

Horizontal Law of 2003

The Horizontal Property Law (also known as ''Ley de Propiedad Horizontal'' or ''Ley de Condominios'') was approved on April 5, 2003 under Law No. 103 established on 4 July 2003. #Collective Constituents ##The Flight: ''the right to elevate (or blowup space)'' ##The Structure: ''the surrounding walls, roof top ceilings, passageway corridors, downward spiral staircases, underlying galleries and entry/departure channels of the foundation.'' ##The Locale: ''the central installations for utility overhauls including electricity, lightning, gas, cold and hot water, refrigeration, water reservoir (tanks, cisterns + pumps) and air conditioning artifacts for

thermal comfort Thermal comfort is the condition of mind that expresses satisfaction with the thermal environment and is assessed by subjective evaluation ( ANSI/ASHRAE Standard 55).ANSI/ASHRAE Standard 55-2017, Thermal Environmental Conditions for Human Occupan ...

.'' ##The Elevator: ''the necessity to enjoy the living habitat of every single apartment.'' ##The Green Area: ''the natural resources required by the community in order to fulfill its joyful experience of existence.'' ##The 5th Element: ''any other element that is indispensable for the proper enjoyment of the apartments in the building.'' #Communal Constituents ## Terra firma ''(earth grounds)'', basement cellar, open space field, rooftop deck, patio, terrace, courtyard and garden. ##Destination areas for the doorman in duty at the atrium, lobby or reception area of the building. ##Destination areas for perpendicular parking. ## Recreational areas which exceed the requirements of urban planning laws.

Zoning

The zoning purpose of empowering

market growth Economic growth can be defined as the increase or improvement in the inflation-adjusted market value of the goods and services produced by an economy in a financial year. Statisticians conventionally measure such growth as the percent rate of ...

and

urban development Urban means "related to a city". In that sense, the term may refer to: * Urban area, geographical area distinct from rural areas * Urban culture, the culture of towns and cities Urban may also refer to: General * Urban (name), a list of peop ...

is a governmental power established under

Executive Executive ( exe., exec., execu.) may refer to: Role or title * Executive, a senior management role in an organization ** Chief executive officer (CEO), one of the highest-ranking corporate officers (executives) or administrators ** Executive dir ...

order in conjunction with the

Legislative A legislature is an assembly with the authority to make laws for a political entity such as a country or city. They are often contrasted with the executive and judicial powers of government. Laws enacted by legislatures are usually known ...

and

Judicial The judiciary (also known as the judicial system, judicature, judicial branch, judiciative branch, and court or judiciary system) is the system of courts that adjudicates legal disputes/disagreements and interprets, defends, and applies the law ...

branches of Puerto Rico. Both the

Puerto Rico Planning Board The Puerto Rico Planning Board ( es, Junta de Planificación) created in the May 12, 1942 during Rexford G. Tugwell's governorship as the Puerto Rico Planning, Urbanization, and Zoning Board, is the only government agency in charge of centraliz ...

''(Junta de Planificación de Puerto Rico)'' and

Rules and Permits Administration Rule or ruling may refer to: Education * Royal University of Law and Economics (RULE), a university in Cambodia Human activity * The exercise of political or personal control by someone with authority or power * Business rule, a rule perta ...

''(Administración de Reglamentos y Permisos - ARPE)'' act as two random variable agencies independent from each other to keep balances in check and delegate economic planning, land use zoning, and case-by-case permitting in Puerto Rico. Since the late 1900s, major

townships A township is a kind of human settlement or administrative subdivision, with its meaning varying in different countries. Although the term is occasionally associated with an urban area, that tends to be an exception to the rule. In Australia, C ...

have been taking over that role under their own jurisdiction; there is no compensation for any restrictions or limitations that zoning imposes on properties. The

was created on May 12, 1942 during

Rexford Tugwell Rexford Guy Tugwell (July 10, 1891 – July 21, 1979) was an American economist who became part of Franklin D. Roosevelt's first "Brain Trust", a group of Columbia University academics who helped develop policy recommendations leading up to R ...

's administration under Law No. 213 which converged centralized governmental planning with a New Deal philosophy under one

American flag The national flag of the United States of America, often referred to as the ''American flag'' or the ''U.S. flag'', consists of thirteen equal horizontal stripes of red (top and bottom) alternating with white, with a blue rectangle in the ca ...

. It was later reorganized by Law No. 75 of June 24, 1975.

Significant developments

Transfer of properties to municipalities

On June 29, 2010, the Governor of Puerto Rico signed a bill transferring thirty (30) installations to municipalities including postmodern

art space An art centre or arts center is distinct from an art gallery or art museum. An arts centre is a functional community centre with a specific remit to encourage arts practice and to provide facilities such as theatre space, gallery space, venues for ...

, an emphasis on

security" \n\n\nsecurity.txt is a proposed standard for websites' security information that is meant to allow security researchers to easily report security vulnerabilities. The standard prescribes a text file called \"security.txt\" in the well known locat ...

, and Head Start centers with contemporary

health Health, according to the World Health Organization, is "a state of complete physical, mental and social well-being and not merely the absence of disease and infirmity".World Health Organization. (2006)''Constitution of the World Health Organiza ...

amenities In property and land use planning, amenity (lat. ''amoenitās'' “pleasantness, delightfulness”) is something considered to benefit a location, contribute to its enjoyment, and thereby increase its value. Tangible amenities can include the ...

. According to

Luis Fortuño Luis Guillermo Fortuño Burset (born 31 October 1960) is a Puerto Rican politician who served as the governor of Puerto Rico, an unincorporated territory of the United States, from 2009 to 2013. Fortuño served as the first secretary of econom ...

, the municipalities receiving the properties were Barceloneta,

Caguas Caguas (, ) is a city and municipality of Puerto Rico located in the Central Mountain Range of Puerto Rico, south of San Juan and Trujillo Alto, west of Gurabo and San Lorenzo, and east of Aguas Buenas, Cidra, and Cayey. Caguas was founde ...

, Cidra, Comerío, Guayama, Gurabo,

Humacao Humacao () is a city and municipality in Puerto Rico located in the eastern coast of the island, north of Yabucoa; south of Naguabo; east of Las Piedras; and west of Vieques Passage. Humacao is spread over 12 barrios and Humacao Pueblo (the ...

, Juncos, Lajas,

Lares Lares ( , ; archaic , singular ''Lar'') were guardian deities in ancient Roman religion. Their origin is uncertain; they may have been hero-ancestors, guardians of the hearth, fields, boundaries, or fruitfulness, or an amalgam of these. Lare ...

, Morovis, Naguabo, Peñuelas, Ponce, Salinas, San Lorenzo, San Sebastián,

Yabucoa Yabucoa () is a town and municipality in Puerto Rico located in the eastern region, north of Maunabo; south of San Lorenzo, Las Piedras and Humacao; and east of Patillas. Yabucoa is spread over 9 barrios and Yabucoa Pueblo (the downtown area ...

and

Yauco Yauco () is a town and municipality in southern Puerto Rico. Although the downtown is inland, the municipality stretches to a southern coast facing the Caribbean Sea. Yauco is located south of Maricao, Lares and Adjuntas; east of Sabana G ...

. He also transferred the administration of the Yabucoa Diagnostic and Treatment Center to that municipality. According to the new law, the municipal authority should cede its jurisdiction, in case of jurisdictional conflict, to the state authority in order to limit the violations of municipal laws from police action.

Housing stimulus program, 2011

During the month of August 2010, Luis Fortuño implemented a real estate / market plan (HS 2011) to reduce a large inventory of 20,000 unsold new homes. #A full exception on paying any Treasury Department financial stamps or payment receipts on new houses. #No payment on Treasury cancellation stamps and receipts when selling an existing property. #No property tax on any new home purchased up to 5 years after the sale. #No capital gains tax on residential homes sold now. #No capital gains tax on future residential sales. #An increase from $1,000 to $5,000 in the mitigation loss cushion. #No tax payment on rental properties for 10 years starting January 2011.

Notes

References

{{DEFAULTSORT:Real Estate In Puerto Rico Economy of Puerto Rico