2023 Laws of Puerto Rico › TITLE THIRTY-ONE - Civil Code (§§ 1 — 5305) › Subtitle 2 - Property Ownership and Its Modifications (§§ 1021 — 1875) › PART III - Common Ownership of Property (§§ 1271 — 1303) › Chapter 151 - Puerto Rico Condo Hotel Act (§§ 1295 — 1303) › § 1295 - Definitions

For the purposes of this chapter, the following capitalized terms shall have the meaning stated in this section:
(1) Administrator.— Means any developer, his/her affiliate and/or respective successors engaged, subject to the provisions of this chapter, in the business of rendering administration services to a leasing program, whether directly or upon the execution of an administration contract through an agent.
(2) Affiliate.— Means any person who controls, is controlled by, or is under common control with another person. It is presumed that a person “controls” another person if the person:
(a) Is a partner, officer or director of the other person;
(b) directly or indirectly or acting through one or more intermediaries or acting in common with one (1) or more persons, owns, controls or has the power to vote (including by proxy) of more than ten percent (10%) of any kind of shares with voting or financial benefit in said person;
(c) determines, in any way, the selection or appointment of the majority of directors of said person, or
(d) has contributed more than ten percent (10%) of the capital of said person.
(3) Agent.— Means any person who exercises the rights and assumes the obligations of an administrator set forth in a leasing contract by delegation of such rights and obligations through the execution of an administration contact.
(4) Lodging unit.— Means any independent use unit in a real property subject to the condo hotel regime with direct or indirect access to a public thoroughfare, and the share in the common elements and the common property designated thereto in the master deed, designed and available to be used and occupied by one or more persons as guests in exchange for a fee, pursuant to the provisions of the “Innkeeper’s Act”, §§ 711 et seq. of Title 10, which is administered by an administrator in a leasing program under the terms of a leasing contract pursuant to the provisions of this chapter. Each lodging unit shall be devoted solely to the use provided therefor in the master deed. The term “lodging unit” shall not include commercial units or residential units.
(5) ARPE.— Means the Regulations and Permits Administration of Puerto Rico or any entity substituting the same.
(6) Condo hotel.— Means a building or group of buildings built to be governed by or converted into the condo hotel regime pursuant to the provisions of this chapter, which complies with the requirements of a tourist or commercial hotel, consisting of apartments or rooms whose owners have committed to include in a leasing program for at least nine (9) months every year and under such terms and conditions agreed upon, to be devoted to lodging guests in exchange for a rate or fee per day or for a definite longer term. The building or group of buildings may have commercial, office, and other use areas consistent with the main use thereof as defined herein.
(7) Administration contract.— Means the contract executed between an administrator and a third party whereby such third party assumes the obligations and exercises the rights of such administrator as agent under leasing contracts.
(8) Leasing contract.— Means the contract agreed upon and executed by the administrator and the owner of a lodging unit whereby such owner of a lodging unit leases to the administrator the lodging unit of which he/she is the owner in order to incorporate the same into a leasing program.
(9) Basic expenses fee.— Means the amount on account of basic expenses to be paid by the owner of the real property pursuant to the provisions of the master deed.
(10) Program administration expenses contribution.— Means the amount on account of program administration expenses to be paid by the owner of a lodging unit pursuant to the provisions of § 1298 of this title and the corresponding leasing contract.
(11) Developer.— Means any person engaged in the design, construction, and/or operation of condo hotels for profit.
(12) Common elements.— Means, in a real property under the condo hotel regime pursuant to this chapter: any real or personal property necessary for the proper operation of the leasing program, which may include the concierge’s office, the front desk, and administrative offices, and any equipment and materials located from time to time inside or outside of the lodging units to meet the needs of condo hotel guests according to their category as provided in the leasing contract or master deed. There shall also be considered common elements, any real property by destination such as beds, furniture, electronic equipment, minibars, computers, fax machines, window treatments, bed sheets, blankets, towels, robes, hangers, and blow-dryers, among others, and any other personal or real property deemed by the administrator, from time to time, to be necessary to such purposes in exercising his/her discretion.
(13) Master deed.— Means the public deed executed by the developer whereby a real property project is submitted to the condo hotel regime (and structures built in said real property), which establishes any covenants and agreements binding upon all the owners of the real property. The clauses in such master deed bind all of the owners of the real property, provided that such clauses do not violate any provisions relative to public law and order.
(14) Basic expenses.— Means regular and special basic expenses, all of which shall be defrayed by the owners of the real property, pro-rata, according to their respective share percentage in the common property, as established in the master deed. The amount owed by an owner of the real property on account of basic expenses shall constitute a preferred lien on the property of such owner and the sum owed by an owner of the real property on this account shall be binding upon any person acquiring such owner of the real property.
(15) Special basic expenses.— Means any expense related to the administration, repair, and maintenance, and replacement of obsolete items of any common property not budgeted but incurred or to be incurred by the administrator from time to time in exercising his/her discretion for being urgent and necessary for the administration and proper operation of the common property, such as expenses related to changes in legal and regulatory provisions, material losses, unforeseen or emergency repairs, or legal actions to enforce the provisions of the master deed or any rights in the common property of the owners of the real property in general. The term shall not include expenses incurred to carry out capital improvements, except if so allowed in the master deed.
(16) Regular basic expenses.— Means any expense related to the administration, repair, and maintenance, and replacement of obsolete items of any common property budgeted and incurred or to be incurred by the administrator from time to time in exercising his/her discretion for the administration and proper operation of the common property. This term shall always include any expense incurred to carry out the real property maintenance works and the payment of real or personal property taxes applicable to the common property, which shall always be included in the basic expenses budget of the administrator. The term shall not include expenses to be incurred to carry out capital improvements, except if so allowed in the master deed.
(17) Program administration expenses.— Means regular and special program expenses all of which shall be defrayed by the owners of lodging units as per the terms of the leasing contract.
(18) Special program expenses.— Means any expenses incurred in the administration, operation, and marketing of a condo hotel according to the design and category thereof that are not budgeted but incurred or to be incurred by the administrator from time to time in exercising his/her discretion given that such expenses are urgent and necessary for the administration and proper operation of the lodging units, the common elements or the leasing program according to the category thereof, such as expenses related to compliance with any changes in the legal and regulatory provisions, material losses, unforeseen or emergency repairs, and legal actions to enforce the provisions of the master deed, the lease contract or any rights of the owners of lodging units in general. This term shall not include expenses to be incurred to carry out capital improvements, except if so allowed in the master deed.
(19) Regular program expenses.— Means all those expenses incurred in the administration, operation, and marketing of a condo hotel according to the design and category thereof that are budgeted and incurred or to be incurred by the administrator from time to time in exercising his/her discretion for the operation or proper functioning of the lodging units, the common elements or the leasing program according to the category thereof, without it being understood as a limitation, the following expenses when applicable to the lodging units and/or common elements: real or personal property taxes, utilities, insurance premiums, administration fees, audit or other expenses related to contracts for the rendering of services to be entered into from time to time by the administrator, costs of cleaning services, the sum of any reserve established or expense incurred in the replacement of equipment, materials, and furniture in the lodging units and common areas or personal property that is a common element, and the payment of debts incurred in the regular course of the operation of the condo hotel. This term shall always include any expense incurred to carry out maintenance works of the program to be defrayed by the owners of lodging units, which shall always be included in the budget of the condo hotel. This term shall not include expenses incurred to carry out capital improvements, except if so allowed in the master deed or the lease contract.
(20) The Mortgage and Property Registry Act.— Means §§ 2001 et seq. of Title 30, and any regulations promulgated thereunder.
(21) The Innkeeper’s Act.— Means §§ 711 et seq. of Title 10, and any regulations promulgated thereunder.
(22) The Condominiums Act.— Means §§ 1291 et seq. of this title, and any regulations promulgated thereunder.
(23) Roster of lodging unit owners.— Means the confidential register of names, mailing and email addresses, and telephone numbers of the owners of the real property, and in the case of juridical entities, the identity of their representatives authorized to receive notices, kept by the administrator of the leasing program for the purpose of making any pertinent notices required under this chapter.
(24) Capital improvements.— Means any expense that, pursuant to the accounting principles generally accepted in Puerto Rico according to the standards established by the Standards Board of the American Institute of Certified Public Accountants, as amended from time to time, shall not be deducted as current expenses in the books of the leasing program and the books related to the administration of the common property, but rather, capitalized. In the event that the master deed establishes that capital improvements may be carried out with the approval of the owners of the real property or the owners of lodging units the same shall be performed by the affirmative vote of fifty percent (50%) plus one (1) of the owners of the real property or owners of lodging units that are entitled thereto.
(25) Real property maintenance works.— Means:
(a) Maintenance, repair, and replacement of obsolete items of the entire common property.
(b) Selection of colors and paint of the common property.
(c) Treatment to walls, roofs or rooftops of the real property under the condo hotel regime to correct or prevent leaks and/or cracks, repair damages caused by birds, and others.
(d) Placing, removing, planting, watering, fertilizing or relocating trees, grass, shrubs or plants, and any other gardening work according to the applicable laws and regulations.
(e) Maintenance of garbage collection systems with adequate capacity for the real property under the condo hotel regime, taking into account its size and the activities carried out in the same.
(f) Maintenance of facilities for services such as telephone, water, electricity, cable, satellite, internet, or security equipment, and the installation and operation of the equipment necessary to provide such services.
(g) Maintenance of community security equipment, such as the closing of entrances to and exits from the real property by using gates, iron grilles or locks.
(h) Construction works, repairs or permanent alterations, whenever necessary or convenient for the common property to temper the same with the applicable laws or regulations.
(i) Any other works determined by the administrator from time to time in exercising his/her discretion to be necessary for the existence, conservation, security, adequate use, and operation of the common property.
(26) Program maintenance works.— Means:
(a) Maintenance, repair, and replacement of obsolete items of the common elements and all personal property, including without being limited to electronic equipment (computers, faxes, telephones, hairdryers, radios or television sets), furniture, refrigeration equipment, storm shutters, and carpeting in the lodging units.
(b) Selection of colors and interior paint of the lodging units and common elements.
(c) General cleaning of the lodging units and common elements.
(d) Construction, repair or permanent alteration works, whenever necessary or convenient for the lodging units and common elements to temper the same with the applicable laws or regulations.
(e) Any other works rationally necessary for the existence, conservation, security, adequate use, and operation of the lodging units and common elements (other than common property.)
(27) Condo hotel share.— Means a property right in fee simple over a lodging unit or over a percentage of the property of the common elements, established by means of a public deed and recorded in the Property Registry pursuant to the provisions of the Mortgage and Property Registry Act, being such property right subject to the terms of a leasing contract whereby said lodging unit is submitted to a leasing program.
(28) Person.— Means any natural person, corporation, partnership, trust, joint ownership, government, government subdivision or agency, any other form of legal entity or any combination thereof.
(29) Leasing program.— Means a program whereby the owners of lodging units lease such units to an administrator to be operated, marketed, and leased by the administrator or his/her agent, pursuant to the provisions of the leasing contract and this chapter.
(30) Common property.— Means, in a real property under the condo hotel regime pursuant to this chapter excluding any common element:
(a) The land where it is located and the projection of the real property;
(b) the foundations, bearing and support walls, roofs, galleys, basements, staircases, and entrance, exit or connecting hallways;
(c) rooftops, elevators, hallways, recreational areas, meeting and social events rooms, and lobbies;
(d) areas dedicated to the administration, security, storage of equipment, safety deposit boxes, and common use products;
(e) main service facilities such as electric power, water, gas, telephone, internet, ethernet, cable tv, digital cable, satellite, refrigeration, air conditioning, fans, water tanks, generators, tanks, water pumps, intercoms, and others;
(f) waste incinerators, areas designated for waste disposal, and other general devices or facilities for common benefit;
(g) any vegetation within or used to decorate the common property described in clauses (a), (b), (c), and (d) and water sprinkler equipment and maintenance thereof, and
(h) all other things that were rationally intended for the common use or benefit in the real property or necessary for the existence, conservation, security, and use thereof according to the master deed.
(31) Owner of a lodging unit.— Means any person who, through the execution of the appropriate contracts and deeds, acquires a lodging unit. This term shall include a developer, when he/she retains the ownership of a lodging unit for the purpose of incorporating the same into a leasing program. It shall not include the owner of a commercial unit or a residential unit.
(32) Owner of the real property.— Means the owners of lodging units, the owners of commercial units, and the owners of residential units.
(33) Commercial units.— Means those independent use units in a real property under the condo hotel regime, and the share in the common property assigned thereto in the master deed, with direct or indirect access to a public thoroughfare, designed and available for commercial use and not for residential use, including without it being limited to restaurants, shops, spas or gyms.
(34) Residential units.— Means those independent use units in a real property under the condo hotel regime that could be considered “lodging units,” except that the same are not participants of a leasing program.
History —Aug. 12, 2008, No. 249, § 3; Dec. 16, 2009, No. 178, § 1; June 24, 2010, No. 67, § 1.