DACO
(Dept. of Consumer Affairs).
LAWS OF PUERTO RICO ANNOTATED
Copyright; 1955-2011 by the Secretary of State of Puerto Rico and LEXISNEXIS of Puerto Rico, Inc.
All rights reserved.
*** This Session is current through December 2009 ***
TITLE 3. EXECUTIVE
CHAPTER 16. DEPARTMENT OF CONSUMER AFFAIRS
3 L.P.R.A. § 341 (2009)
Because this session was only valid to 2009, I researched the current Act No 5. Be sure to use this web link for the most up-to-date version of this Act. https://presupuesto.pr.gov/Budget_2012_2013/Aprobado2013Ingles/suppdocs/baselegal_ingles/069/069.pdf
Question #1: DACO prohibits all advertisements about the sale lease or any act of disposition of real property without the necessary legal permits. The penalty for violating this provision is:
- Answer: $500 or 6 months in jail, or both for each violation
Question#2: Explain the differences between an Inscription and a Subsequent Inscription. (Answer on a word processor and attach doc. Answer should include the implication of the two terms in contrast)
- Answer: A certificate of inscription is given by the dept of consumer affairs (DACO) to buy and sell properties in Puerto Rico that are located outside of Puerto Rico. To get this certificate you need to do an initial inscription which is when you list a property you bring all of the materials being used to advertise and market the property to DACO. They will require you to fill out some forms and you must provide all of the information and details of the materials you plan to use to market the sale of the property. Once they approve it, you will receive a certification of inscription. A subsequent inscription, (following the original inscription) is when you need to make any changes to the marketing materials or promotional paperwork. You have to report any changes to DACO by filling out a new application and submitting the paperwork for DACO to review, and then you must wait for their approval.
Question #3: When is the bond not required for property located outside of Puerto Rico? Explain. (Answer in word processor and attach)
- Answer: For real estate property selling outside of Puerto Rico, the bond can be omitted if the property is protected by home owner warranty program. The bond isn't required if the buyer receives the warranty provided by the Home Owners Warranty Program endorsed by the National Association of Home Builders.
Question #4: List everything a Broker needs to inform and evidence before DACO once they have a license. (this was listed twice in a row, so I assume you want to know what a salesperson needs to inform DACO as well) Within the 30 day term, after obtaining their license. (answer on word processor and attach)
- Answer: The broker must report to DACO within 30 days after obtaining their license. They must provide a certificate of the bank they have their escrow account with and they must keep record of all funds deposited into that bank including information about the dates, from who, withdraw information, etc. The Real Estate Salesperson must also inform DACO within 30 days after obtaining their license. They must report to DACO the deposit, option, advance, or down payment received by the salesperson that is deposited into the escrow account of an authorized RE Broker. They must supply evidence of an authorized RE Broker's Escrow account. They must provide the name of the bond insurer, insurer's phone number and physical/postal address. Report the PLICA account/escrow account.
Question #5: Real Estate Brokers are obligated to inform___________ about PLICA (escrow) account.
- Answer: The Board, when applying for a license and DACO, 30 days after obtaining a license.
Question #6: DACO requires a bond for properties located outside of Puerto Rico, that are sole in Puerto Rico. What is the amount of the said bond?
- Answer: $1,000,000 or 6% of value of each unit
Question #7: What is the Inscription Certificate and who issues it? (Answer on a word processor and attach document. Answer should describe the Inscription Process)
- Answer: A certificate of inscription is given by the dept of consumer affairs (DACO) to buy and sell properties in Puerto Rico that are located outside of Puerto Rico. To get this certificate you need to do an initial inscription which is when you list a property you bring all of the materials being used to advertise and market the property to DACO. They will require you to fill out some forms and you must provide all of the information and details of the materials you plan to use to market the sale of the property. Once they approve it, you will receive a certification of inscription.
Question #8: The Secretary of DACO has the faculty to impose fines up to the following amount.
DACO Exercise