2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 17 - Internal Revenue Code of 2011 (§§ 30001 — 33423) › PART VII - Administrative Provisions, Procedures, Interests, Penalties, and Additions to Taxes (§§ 33001 — 33423) › Chapter 1066 - Procedures for Demand for Payment, Attachment, and Sale of Taxpayer’s Property (§§ 33261 — 33280) › § 33269 - Auction; notice and surrender of surplus to taxpayer; effect on redemption right

(a) The time, place, and conditions under which such auction is to take place shall be clearly stated in the auction announcement, as established in § 33268 of this title. Upon expiration of the aforesaid publication term, or as soon as practicable after its expiration, the aforementioned property shall be sold by the agent at public auction to the bidder who makes the best offer. No bid shall be accepted if made for a sum less than the amount fixed under this Code for the auction. No bid shall be accepted, either, unless a money deposit is made for ten percent (10%) of the amount offered, which deposit shall be forfeited if the buyer fails to pay the remaining amount for which the property was sold within ten (10) days following the date of sale.
(b) Within thirty (30) days after having held the auction, the Secretary or the authorized agent, after applying the corresponding amount to the payment of the debt, shall notify the taxpayer of the outcome of the auction and inform him/her of the amount of the surplus amount, if the adjudication price is greater than the debt pending collection, and also whether the prevailing bidder was a third party or the Government of Puerto Rico.
(c) At any time within the term of one year from the date of auction, the Secretary shall be required, by request of the taxpayer, to surrender such surplus over to him/her, if the prevailing bidder was a third party and the latter certifies that the taxpayer has transferred possession of the property to him/her, or that such transfer has been agreed upon to the satisfaction of both parties. In such case, the redemption right granted under this Code shall be deemed to be extinguished as soon as such amount is surrendered over to the taxpayer or his/her legal heirs.
(d) If after one year the taxpayer has not exercised his/her redemption right, or if such right has been extinguished pursuant to the aforementioned provisions, the Secretary shall be required to notify to the taxpayer or his/her heirs that the surplus is available for surrender and to surrender the same after the interested persons requesting such surplus prove to him/her that they are entitled to such surplus.
(e) When adjudication has been made to the Government of Puerto Rico, the taxpayer, at any time after he/she has been notified of the outcome of the auction, may request that the surplus be surrendered to him/her, and such request shall be construed as an offer to waive his/her redemption right, which shall be consummated upon surrendering such surplus to the taxpayer or his/her heirs. The surplus shall be surrendered by the Secretary by using regular funds of the Government of Puerto Rico for that purpose.
(f) Before paying the surplus to the taxpayer, the Secretary may allow any instrumentality or agency of the Government of Puerto Rico to acquire the property auctioned, if the nature of its business is compatible with such acquisition. In such case, the agency or instrumentality, through the Secretary, shall pay to the taxpayer or his/her heirs such surplus and pay to the Secretary the amount of the debt whose collection prompted the auction of the property.
(g) A certificate from the Secretary attesting that both payments have been made shall constitute sufficient title deed over the property in favor of the instrumentality or agency, which title deed shall be recordable at the Property Registry.
(h) The Secretary shall not pay any surplus to the taxpayer before he/she has surrendered possession of the real property.
History —Jan. 31, 2011, No. 1, § 6060.09, retroactive to Jan. 1, 2011.