REGULATION ADOPTED FOR ACT 10

REGULATION ADOPTED FOR ACT 10.

Regulation to Implement Act 10

REGULATION 5567

Act 10 of April 26, 1994 empowers the Real Estate Brokers', Salespersons' and Companies' Board (“the Board”) to develop regulation to regulate the profession and protect consumers. Article 9, sections k, l, m and n specifically authorize the Board to establish academic preparation requirements, as well as the necessary ethics and implementation regulations.
The Board exercised that power on September 26, 1994 by developing Regulation #5567, which is known as Act 10 Regulation for the Real Estate Business in Puerto Rico. You can find the complete text in the "Resources" section of this lesson.
Regulation 5567 implements Act 10 and provides procedures to authorize the professional practice of Real Estate Brokers and Salespersons in Puerto Rico. It also provides guidelines for the operation of Real Estate Companies by creating the corresponding licensing procedure.

DEFINITIONS

Terms and phrases used in this regulation will have the following express meanings, except when rules of context indicate otherwise:

Section 1. SHAREHOLDER OF A REAL ESTATE COMPANY, FOR THE PURPOSE OF REQUIRING THEY ARE LICENSED BROKERS. One who owns shares and who has a right to vote or administrate the business. One who owns shares that only generate right to dividends, without any further rights will not be considered SHAREHOLDER for the purpose of this section.

Section 2. ADJUDICATION. Statement of the Board, which determines rights, obligations or privileges of a party.

Section 3. CANDIDATE. Person that has initiated steps to obtain a license.

Section 4. BUYER. Any person who is the acquiring party in a real estate transaction of real property located in or outside of the Commonwealth of Puerto Rico.

Section 5. BROKERAGE CONTRACT. The agreement whereby a person is bound to render services as an intermediary with a third party in exchange for payment to perform a real estate transaction, as defined in this chapter. What characterizes the actions of the intermediary is that his/her actions will be limited to bringing the parties in direct or indirect contact so that they alone engage in a Real Estate transaction. The intermediary will not be a party in the real estate transaction resulting from his/her work.

Section 6. PROMISE OF SALE CONTRACT. Any direct or indirect, immediate or deferred bilateral contract which binds the parties to convey title of real property located in or outside the Commonwealth of Puerto Rico.

Section 7. REAL ESTATE BROKER. A natural person who holds a license to practice the profession of real estate broker issued by the Board and acts as intermediary, through the payment or the promise of payment of any compensation previously and mutually agreed upon between the parties that contract to execute in Puerto Rico a sales transaction, promise of sale, purchase or sale option, exchange, lease, auction, property management, or in the offering, promotion, or negotiation of the terms of all sales, sales options, promise of sale, lease management, or exchange of real property located in or outside of the Commonwealth of Puerto Rico. However, for the purposes of this chapter, any type of transaction related to the purchase, sale, lease, exchange, action or management of real property by a broker in which he/she is the owner of said real property and acts in his/her own interest and not as the intermediary between two (2) clients, shall be deemed as practicing the profession of real estate broker.

Section 8. ESCROW ACCOUNT. An special account in a banking entity authorized to conduct business in the Commonwealth of Puerto Rico, in which real estate brokers shall deposit all cash advances, down payments, good-faith deposits or other deposits in trusts received by it, its partners, salespersons, or employees on behalf of any client or entity, until the transaction for which the same were deposited is made or concluded, and shall render account thereof at the time of making or concluding the transaction.

Section 9. DACO. Acronym for “Departamento de Asuntos del Consumidor, which is Spanish for Department of Consumer Affairs.

Section 10. DEPARTMENT. The Department of State.

Section 11. DEPOSIT. The sum of money that a buyer delivers to a real estate broker, salesperson or company before executing a real estate transaction, with regard to the real property located in or outside the Commonwealth of Puerto Rico, so that the real estate broker, salesperson, or company may initiate the necessary steps for said transaction to be achieved.

Section 12. EXECUTIVE DIRECTOR. Person designated by the Board to coordinate administrative and clerical functions.

Section 13. REAL ESTATE COMPANY. Any partnership or corporation which holds a license as a real estate company issued by the Board and is engaged in any of the activities that a real estate broker is authorized to perform under this chapter.

Section 14. EXAMINEE. A person who has taken the test required, to obtain a Real Estate Broker or Salesperson license.

Sección 15. BOARD.The Puerto Rico Board of Real Estate Brokers, Salespersons, and Companies.

Section 17. LICENSE. The official authorization issued by the Board to practice the profession of real estate broker, salesperson, or company in the Commonwealth of Puerto Rico.

Section 18. REAL ESTATE COMPANY LICENSE. The license issued to a partnership or corporation to engage in the real estate business in the Commonwealth of Puerto Rico.

Section 19. DESIGNATED MEMBER. Member of the Board, designated by the president to carry out a specific function.

Section 20. ORDER 0R RESOLUTION. Determination of the Board that adjudicates rights or obligations to one or more persons.

Section 21. PERSON. Any natural or juridical person

Section 22. PROPRIETOR. Any person who owns real property located in or outside of the Commonwealth of Puerto Rico, who solicits and contracts the services of a real estate broker, salesperson, or company to carry out a transaction with regard to said real property.

Section 23. REGISTRY. Record of Real Estate licenses for Brokers, Salespersons and Companies, that have been issued, denied, suspended or renewed by the Board.

Section 24. RULES. The dispositions of this Regulation.

Section 25. ADMINISTRATIVE RULES. Rules related with the internal administration of the Board, that neither directly, nor substantially affect rights, procedures or practices available to the general public.

Section 26. REAL ESTATE TRANSACTION. Any sales contract, promise to sell, option to buy or sell, exchange, leasing, auction, property management contract, or the offer, promotion or negotiation of the terms of a real estate sale, purchase-sale option, sales promise, lease, management or exchange located in or outside the Commonwealth of Puerto Rico, in which a real estate broker, salesperson, or company serves as intermediary.

Section 27. REAL ESTATE SALESPERSON. The natural person who holds a license to practice the profession of real estate salesperson issued by the Board, and is employed or contracted as independent contractor, directly or indirectly, through the payment of any compensation, by a real estate broker to perform under his/her direction, control, supervision, and responsibility any of the activities authorized by this chapter to a real estate broker. The real estate salesperson shall be bound to comply and keep the Board informed of his/her place of business at all times in order to comply with this provision.

INSTRUCTOR'S NOTE: Part of this Regulation was repealed by the New Academic Regulation No. 7962

Articles

ARTICLE I. PURPOSE
The purpose of this Regulation is to establish course or study requisites and the specific subjects necessary to practice the real estate broker or salesperson profession; establish continuing education courses for license renewal; set out the process of study curriculum certification and consideration of requests to offer said courses, as well as accreditation for the institutions that will offer them.

ARTICLE 2. LEGAL AUTHORITY
This Regulation is adopted by virtue of the dispositions of Act No. 10 of April 26, 1994 known as "Act to Regulate the Real Estate Business and the Real Estate Broker, Salesperson and Company Profession” and by virtue of Act No. 170 of August 12, 1988, as amended, known as "Uniform Administrative Procedure Act of the Commonwealth of Puerto Rico."

ARTICLE 3. DEFINITIONS

Section 1. Board - Means Puerto Rico Board of Real Estate Brokers, Salespersons, and Companies.
Section 2. Act - Means Act No. 10 of April 26, 1994.
Section 3. Department - Means Department of State.
Section 4. Broker and Salesperson - Means, a natural person who holds a license to practice the profession of real estate broker or salesperson as per Act 10.
Section 5. Professional Association and/or Real Estate Professional Association – Means any private association or non-profit corporation whose members are engaged in the real estate business, either as real estate brokers, salespersons or companies and whose purpose is to implement rules and programs, with in order to further develop said business.
Section 6. School – Means institute, university, college, school, entity, partnership, association, professional association or person that offers real estate courses or seminars.
Section 7. Accredited School – a school that has obtained Board accreditation after meeting the established requirements.

ARTICLE 4. STUDY REQUISITES FOR REAL ESTATE BROKERS

Section 1. Professional education requirements for Real Estate Broker’s license candidates.
- A. Approve ninety (90) class hours on real estate in an accredited school. The Board will accept professional courses taken on real estate subjects listed in Section 2 of this article as provided.
- B. Approve six (6) hours a year of continuing education on real estate from an accredited school or courses sponsored by professional real estate associations, persons, entities, partnerships or institutes, previously approved by the Board.
Section 2. The subjects considered to comply with the aforementioned requisites are the following:

Section 3. The requisites are compulsory subjects and will be used to prepare the exams. The rest will be considered electives until completing required hours.
Section 4. Continuing education requirements.
The requirement will be six (6) hours of continuing education per year from April 26, 1996, to be able to apply for renewal of a broker’s license. The year referred to herein, means from the year of effectiveness of the license until its renovation.
Section 5. The subjects acceptable as continuing education will be the following:
- a. All subjects previously listed in Section 2.
- b. Conferences and lectures, related to the profession, offered in professional conventions or sponsored by
- professional associations of Mortgage Bankers, Professional Evaluators and Landlords’ Association.
- c. All educational activity offered by the National Association of Realtors.
- d. The publication of articles related to real estate in a professional magazine or general circulation newspaper.
- e. Conferences and lectures dictated in conventions or educational activities about the profession or the real estate business.
- f. Preparation, drafting and publication of books about real estate in which they are authors.
Section 6. Acceptance of conferences and lectures received or dictated for continuing education. An hour will be credited per lecture or conference offered or dictated up three (3) hours per year.
Section 7. Acceptance of hours for being the author of a book or an article published during the required period for renovation.
- a. An hour (1) will be credited per article published, up three (3) hours per year.
- b. Three (3) hours will be credited per book published of which he/she is the author.

ARTICLE 5. PROFESSIONAL EDUCATION REQUISITES FOR REAL ESTATE SALESPERSON LICENSE

Section 1. Sixty (60) hours of study on real estate in an accredited school, will be required.
Section 2. Professional education subjects that will be accepted as hours of study are the following:

Section 3. Continuing education for real estate salespersons. The continuing education requirements for real estate salespersons are: four (4) hours of study per year, for a total of sixteen (16) hours to renew the license which is valid for four (4) years.
Section 4. Continuing education subjects

Subjects acceptable as continuing education are:

a. All subjects accepted to qualify for a real estate salesperson license.
b. All subjects and activities accepted for real estate brokers. These will be credited as per Article 4, Sections 5, 6 and 7.

ARTICLE 6. AMENDMENTS TO STUDY SUBJECT LISTS

Section 1. The Board may, by order issued pursuant to Act. No. 170, supra, amend by adding to the lists containing the acceptable study subjects for obtaining a license or as continuing education for real estate brokers and salespersons.
Section 2. The Board will give due publicity to orders so issued.

ARTICLE 7. EVIDENCE REQUIRED FOR ACCEPTANCE OF HOURS OF STUDY

Section 1. The candidate to or holder of a real estate broker or salesperson license, must present evidence to the Board for the acceptance of hours of study.
Section 2. A certification of courses taken or participation as speaker in an educational activity related to real estate, issued by an accredited school, will be considered evidence. Said certification must contain the following:
- a. Name of the School or Institution
- b. Title or Description of the seminar or lecture
- c. Date
- d. Place of presentation
- e. Number of hours
Section 3. Credits for the publication of articles and books. Credits for the preparation of said publications may be claimed up to a fifty percent (50%) maximum of the total hours of continuing education required for the renovation of a Real Estate Broker license, during the four year period reports. The credit application must be accompanied by a copy of the books or articles published, a detail of preparation time for each and an explanation justifying the application for credit for continuing education hours. The Continuing Education Committee will verify said information and determine the number of credit hours to be conceded.
Section 4. Credits for professors and discussion leaders. When a professor or discussion leader, renders services in a program through which students may receive credit on a professional development level, they will be granted credit for preparation and presentation time measured in terms of hours.

Professors and discussion leaders will receive credit both for preparation and presentation. For the first time presenting a course they will receive hours of credit for the amount of real hours it took to prepare, up to twice the length of the program. If a program is classified as an eight (8) hour program, the professor could receive up to 24 hours of credit (16 hours for preparation and eight (8) hours for presentation). For a second presentation of the same course, within a same continuing education report period, the professor will receive credit for fifty percent (50%) of presentation time only. The professor will not receive any credit for subsequent presentations of the same program within the same report period.

ARTICLE 8. SCHOOL ACCREDITATION

Section 1. Continuing education courses in real estate, necessary to qualify as broker and salesperson in the original or renovation application must be taken in an accredited school.
Section 2. Their study programs or curriculum must include the minimum subjects required by the Board, to be able to qualify as Real Estate Broker or Salesperson in the original application.

ARTICLE 9. SCHOOL ACCREDITATION PROCEDURE

Section 1. The Board will hold public hearings to consider the accreditation application of professional associations, universities, schools, colleges, persons, entities, partnerships or institutes to be able to offer the courses established by the Act and these regulations.
Section 2. The Board will summon, with forty five (45) days’ notice, all parties interested in offering real estate courses in Puerto Rico and publish and invitation for said hearing in a general circulation newspaper in Puerto Rico, within that same time notice.
Section 3. All concerned must apply to the Board to request their accreditation in order to sponsor or offer courses acceptable as professional and continuing education, required to brokers and salespersons. They must complete the application form approved by the Board, which will include, among other things, the academic preparation, experience of teaching and administrative staff, their mission and curricular preparation scheme on real estate.
Section 4. A school, approved by the Superior Education Council, General Teaching Council or the Department of Education of Puerto Rico, must submit copy of said accreditation and any subsequent evaluation to the Board. The Board will approve the school subject to the expiration date of said accreditation, but it shall not exceed the four (4) year period.
Section 5. The Board will receive all the information during the hearing and will allow the presentation of documents up to ten (10) days after the last hearing day.
Section 6. The Board will determine the approval or denial of the application in an executive meeting and notify applicants of their determination within thirty (30) days of the last hearing day.
Section 7. If application is denied, the procedures established in the “Regulation of Adjudicative Procedure before the Board” will be followed.
Section 8. The Board may accredit a school temporarily or conditionally and for however long it deems appropriate, up to four (4) years.

ARTICLE 10 BOARD PROCEDURES FOR COURSE APPROVAL

Section 1. Every school must submit to the Board, in public hearing, notified and held pursuant to the Act, every course or curriculum to be offered to qualify as required education to request examination for broker or salesperson license.
Section 2. The Board will consider every course or curriculum submitted in a period of thirty (30) days and will deliver its ruling, which may be accompanied by commentaries and recommendations.
Section 3. The Board will concede a term of twenty (20) days to resubmit the course or curriculum duly amended in order to obtain approval.
Section 4. The Board may summon an administrative hearing to discuss any issues related to the applicant.
Section 5. In the event the Board rejects the course or curriculum, the applicant may follow the procedures established in the Regulation of Adjudicative Procedures before the Board.
Section 6. The Board reserves the right to visit schools that offer real estate courses and attend these.
Section 7. The approval of a curriculum will have a maximum term of four (4) years and may be renewed without a public hearing.

ARTICLE 11 – REGISTRY TO BE MAINTAINED IN SCHOOLS
As a means of supporting reports that may be required to participants, schools must keep the following for a period of five (5) years:

1. Assistance registry, including the accumulated contact hours per student.
2. Syllabus of courses, trainings, seminars, conferences or equivalents
3. Dates of presentation of courses, trainings, seminars, conferences or equivalents
4. Location of courses, trainings, seminars, conferences or equivalents
5. Professors
6. Number of credit hours
7. Summary of evaluations made by the students with regards to the courses, trainings, conferences and professors

ARTICLE 12. ALTERNATIVE EDUCATIONAL METHODS BY REASON OF PHYSICAL LIMITATIONS
Section 1. Courses offered by television or any other method will be accepted as alternative educational methods for persons with physical limitations, that cannot attends regular courses.
Section 2. These must be offered by accredited schools.
Section 3. The subjects to be offered will be those approved by the Board, following the procedures established in this Regulation.

ARTICLE 13. SEPARABILITY
A declaration by a competent Court which renders any disposition of this Regulation invalid, null or unconstitutional, shall not affect the remaining dispositions, which shall remain in full force and effect.

ARTICLE 14. EFFECTIVENESS
This Regulation shall begin to rule upon thirty (30) days after its presentation. Approved in San Juan, Puerto Rico on this 26th day of September of 1996.

ADJUDICATIVE PROCEDURE REGULATION

ARTICLE 1. PURPOSE

The purpose of this Regulation is to establish the norms that will regulate the adjudication procedures of the Puerto Rico Board of Real Estate Brokers, Salespersons, and Companies, complimenting the dispositions of Act No. 170 of August 12, 1988, as amended.

ARTICLE 2. LEGAL AUTHORITY

This Regulation is approved by virtue of the provisions of Act No. 170 of August 12, 1988, as amended and Act No. 10 of April 26, 1994.

ARTICLE 3. APPLICATION

This regulation will apply to all adjudicative procedures heard by the Board.

ARTICLE 4. DEFINITIONS

Section 1. "Board" will mean, the Puerto Rico Board of Real Estate Brokers, Salespersons, and Companies.
Section 2. "Law" will mean, Act No. 10 of April 26, 1994.
Section 3. "Department" will mean, Department of State.
Section 4. "Adjudication" will mean, the ruling by which the Board determines the rights, obligations or privileges that correspond to a party.
Section 5. "Record" will mean all documents and other materials, related with a specific matter that is or has been submitted for the consideration of the Board.
Section 6. "Official Interpretation" will mean, the Board’s interpretation of the Law or Regulation under its administration, issued upon a party’s request or by Board’s own initiative, which is incorporated to the Board’s formal interpretation repertoire.
Section 7. "Intervenor" will mean, a person who is not an original party to an adjudicative process taking place and has demonstrated standing or interest in the proceedings.
Section 8. "Resolution Order" will mean, any Board decision or action awarding rights or obligations, or imposing penalties or administrative sanctions, to one or more specific persons.
Section 9. "Order or Partial Resolution " will means significant action of the Board that assigns any right or obligation that does not put an end to the total controversy, but to a specific aspect of it.
Section 10. "Interlocutory Orders" will mean, a determination of the Board, that disposes of a purely procedural matter.

ARTICLE 5. BEGINNING OF THE ADJUDICATION PROCESS

All adjudicative procedures are initiated by the Board or by filing a complaint, request or petition at the Board’s Offices, either personally or in writing.

ARTICLE 6. CASE PLAINTIFFS

Any person, authorized by or claiming rights by virtue of, the Law administrated by the Board or regulations issued thereunder; Commonwealth agency officials, by virtue of Section 6.5 of the aforementioned Act 170; and Board-designated officials.

ARTICLE 7. PART SUBSTITUTION

Section 1. In cases submitted by a Board official or by other Commonwealth officials, the State will be considered moving party. Therefore, termination of employment or position of the official who filed the complaint shall not require substitution of party.
Section 2. In cases submitted by natural or legal persons, the Board may authorize the continuation of the case according to the criteria of Rule 22 of the Rules of Civil Procedure.

ARTICLE 8. COMPLAINT OR PETITION CONTENT

The complaint or petition must describe the facts in issue, applicable legal and/or regulatory provisions in which the complaint is based and remedy sought, in general or specific form, and should be signed by the moving party or in cases of natural or legal persons, that are not Commonwealth officials, by themselves or their legal representation.

Private legal persons may sign complaints or petitions through any person authorized by law or by resolution issued by the legal person. Complaint or petition must include name, address and telephone number of the moving party and any person concerned.

ARTICLE 9. REQUEST FOR INTERVENTION

Any person with legitimate interest in an adjudicative procedure being heard by the Board may submit a duly substantiated, written request to be allowed to participate or intervene in said proceedings. The Board may grant or deny said request, at its sole discretion, after taking into consideration certain factors, pursuant to Section 3.5 of Act No. 170.

ARTICLE 10. NOTIFICATION OF COMPLAINT OR PETITION

The Board will notify copy of the complaint or petition to the defendant or petitioned, within fifteen (15) days of filing.

ARTICLE 11. ANSWER TO COMPLAINT OR PETITION

Within the subsequent twenty (20) days of the archive for record of copy of the notice of complaint or petition, the defendant or opposing party will file the corresponding answer or counter claims, which shall include the applicable defenses that may assist them.

ARTICLE 12. AMENDED ALLEGATIONS

Section 1. The Official Examiner in charge of the case may authorize amendments to the allegations in the interest of justice, if the amendment request is filed within reasonable time of the hearing.
Section 2. Neither the Board, nor a movant employed by another government agency, nor a movant who is a private person, may request to amend the complaint during the hearing. If the proposed amendment is necessary, the Official Examiner will suspend the hearing and order: (1) that the amendment is submitted in writing, within the subsequent five (5) work days; (2) that the defendant or opposing party be notified; and (3) a new hearing designation.

ARTICLE 13. ADJUDICATION OFFICIALS

The Board in full session, reserves the right to adjudicate controversies brought to their direct attention or initiated motu proprio.

ARTICLE 14. OFFICIAL EXAMINER

The President of the Board will designate one of its members as Official Examiner to preside over adjudicative procedures. Said member may not participate in voting procedures to accept or reject recommendations made by him or herself.

The Board may approve the hiring of an external resource for said function.

ARTICLE 15. DELEGATION FOR DISPOSITION OF PROCEDURAL MATTERS

Section 1. The Official Examiners will have authority to hear all procedural matters and those related to evidence, including discovery and may issue interlocutory rulings as necessary.
Section 2. Rulings so issued by Official Examiners will be considered Board rulings and may only be reviewed by means of Motion for Reconsideration filed with regards to the final case resolution.

ARTICLE 16. DISCOVERY

Section 1. In cases filed by the Board or Commonwealth officials and within reasonable time before the hearing and the pre-hearing conference, the defendant or opposing party will have the right to request, the following information:
- a. All documents held by the Board with regards to a complaint, that the Board or an official from another government agency pretends to use in the case.
- b. The list of witnesses that will appear to testify during the hearing, with a brief summary of the content of their testimony.
Section 2. In cases filed by persons outside the Board, the Official Examiner may exercise his or her discretion in authorizing the use of discovery mechanisms. This shall not impose limitations greater than those imposed in the case of complaints filed by Board or other agency officials.

ARTICLE 17. PRE-HEARING CONFERENCE

Section 1. The Official Examiner may summon a pre-hearing conference, "motu proprio" or upon request and may order the parties to meet before said conference and file a report within the five (5) days prior to the hearing.
Section 2. The contents of said report, as modified or approved by the Official Examiner will rule the course of the subsequent proceedings, except when the Official Examiner, with just cause and for the sake of justice, authorizes any modification.

ARTICLE 18. ADJUDICATIVE HEARING NOTIFICATION

The Official Examiner will notify the date, time and place in which the hearing will take place, to all parties with no less than fifteen (15) prior to the hearing.

ARTICLE 19. HEARING TRANSFER AND SUSPENSION

Section 1. All parties interested in the transfer or suspension of a hearing, must request it, in writing, with no less than five (5) work days prior to the designation.
Section 2. The Official Examiner, making use of his or her discretion, may suspend the hearing, “motu proprio”, when circumstances warrant such measures.
Section 3. When a petition for transfer or suspension is submitted by a party who is not the Board or a government official, said petition will constitute a waiver of having their case adjudicated within the six (6) months from the filing date of the complaint or petition.

ARTICLE 20. DEFAULT

If, having been summoned to a pre-hearing conference, to the hearing itself, or to any other stage in the proceedings, a party failed to appear or to comply with any disposition or order from the Official Examiner, they may be declared in contempt, have their allegations eliminated and the proceedings may continue without their paticipation.

Any of these determinations will be notified to the address on record for that party. They may request a reconsideration of said determination, once the Board dictates the final resolution of the case.

ARTICLE 21. LEGAL REPRESENTATION

Parties outside the Board, that are not government officials acting in their official capacity, may appear by themselves or through their attorney.

ARTICLE 22. EVIDENCE ON CASE RECORD

Section 1. The case record will not contain any evidence until it has been formally offered by one of the parties. Said evidence will not be considered admitted until it has been admitted by the Official Examiner during the pre-hearing conference or the hearing on the merits of the case.
Section 2. All reports or documents produced by the Board or by a government official, must be properly identified and will be admissible as evidence if said person is present to be cross-examined about said document, unless the parties stipulate the contents of the report.

ARTICLE 23. RECORDS

Section 1. Pursuant to Section 3.18 of Act No. 170, the Board will keep an official record of each adjudicative procedure, conducted pursuant to the procedure established in this Regulation.
Section 2. The record will include, but is not limited to include, the following:e. A list of all matters in which judicial notice was taken.f. Offer of proof and related objetions and resolutions.g. Proposed fact findings and legal conclusions.h. The memorandum prepared by the official who presided over the hearing, along with any transcript of all or part of the hearing, considered before the final disposition of the proceedings, in cases in which said presiding official had no authority to adjudicate.i. Any order or resolution's whether final, preliminary or on reconsideration.
- a. Notifications of all procedures.e. A list of all matters in which judicial notice was taken.f. Offer of proof and related objections and resolutions.g. Proposed fact findings and legal conclusions.h. The memorandum prepared by the official who presided over the hearing, along with any transcript of all or part of the hearing, considered before the final disposition of the proceedings, in cases in which said presiding official had no authority to adjudicate.i. Any order or resolution's whether final, preliminary or on reconsideration.b. Any interlocutory order or resolution dictated before the hearing. A list of all matters in which judicial notice was taken.f. Offer of proof and related objections and resolutions.g. Proposed fact findings and legal conclusions.h. The memorandum prepared by the official who presided over the hearing, along with any transcript of all or part of the hearing, considered before the final disposition of the proceedings, in cases in which said presiding official had no authority to adjudicate.i. Any order or resolution's whether final, preliminary or on reconsideration.c. Any motion, claim, petition or request.e. A list of all matters in which judicial notice was taken.f. Offer of proof and related objections and resolutions.g. Proposed fact findings and legal conclusions.h. The memorandum prepared by the official who presided over the hearing, along with any transcript of all or part of the hearing, considered before the final disposition of the proceedings, in cases in which said presiding official had no authority to adjudicate.i. Any order or resolution's whether final, preliminary or on reconsideration.d. Evidence received or considered.f. Offer of proof and related objections and resolutions.g. Proposed fact findings and legal conclusions.h. The memorandum prepared by the official who presided over the hearing, along with any transcript of all or part of the hearing, considered before the final disposition of the proceedings, in cases in which said presiding official had no authority to adjudicate.i. Any order or resolution's whether final, preliminary or on reconsideration.
- e. A list of all matters in which judicial notice was taken.g. Proposed fact findings and legal conclusions.h. The memorandum prepared by the official who presided over the hearing, along with any transcript of all or part of the hearing, considered before the final disposition of the proceedings, in cases in which said presiding official had no authority to adjudicate.i. Any order or resolution's whether final, preliminary or on reconsideration.
- f. Offer of proof and related objections and resolutions.h. The memorandum prepared by the official who presided over the hearing, along with any transcript of all or part of the hearing, considered before the final disposition of the proceedings, in cases in which said presiding official had no authority to adjudicate.i. Any order or resolution's whether final, preliminary or on reconsideration.
- g. Proposed fact findings and legal conclusions.i. Any order or resolution's whether final, preliminary or on reconsideration.
- h. The memorandum prepared by the official who presided over the hearing, along with any transcript of all or part of the hearing, considered before the final disposition of the proceedings, in cases in which said presiding official had no authority to adjudicate.
- i. Any order or resolution's whether final, preliminary or on reconsideration.
Section 3. The Board's record will constitute the exclusive basis for Board action in an adjudicative procedure pursuant to this Regulation and for the ulterior judicial review.

ARTICLE 24. PROCESS DURING THE HEARING

Section 1. The hearing must be recorded or typed.
Section 2. The Official Examiner which presides the hearing, will do so within a structure of relative informality and offer the parties the necessary time for a complete disclosure of the facts and matters in controversy.
Section 3. Evidence Rules will not rule administrative proceedings, but basic evidentiary principles may be used to reach a swift, just and economical resolution of the proceedings.
Section 4. The parties will have an opportunity to answer questions, present evidence, argue, cross-examine and submit rebuttal evidence.
Section 5. All persons who invoke their constitutional right against self-incrimination, may me compelled to produce information required by the Board with a judicial order issued by the Superior Court.

ARTICLE 25. PROPOSED FACT FINDINGS AND LEGAL CONCLUSIONS

Section 1. The Official Examiner may order the parties to submit a project of fact findings and legal conclusions. A term of fifteen (15) days after the hearing date will be granted for the presentation of said project.
Section 2. The Board may dismiss or summarily dispose of a complaint or petition “motu proprio” or upon a party's request, if it is determined that said complaint or petition does not state facts that justify granting a remedy, or, if lacking any factual dispute or controversy, a resolution must be granted in movant's favor as a matter of law.
Section 3. The Official Examiner to whom the request for dismissal or summary resolution is referred to, will refer the sama to the Board for its adjudication.
Section 4. The ruling on a dismissal or summary resolution, of a complaint or petition, may only be subject to review, by opportunely filing a motion for reconsideration. If the ruling subject of a motion for reconsideration, was originally made without a hearing, the Board will celebrate a hearing to consider said motion for reconsideration.

ARTICLE 26. FINAL ORDERS OR RESOLUTIONS

The Board will issue in writing, a final order or resolution, within ninety (90) days after the hearing date and will take into consideration the final report prepared by the Official Examiner.

ARTICLE 27. RECONSIDERATION AND JUDICIAL REVIEW

Section 1. All parties adversely impacted by a Board resolution, may request its reconsideration pursuant to Section 3.5 of Act No. 170.
Section 2. Any person adversely impacted by any final Board ruling, may request its reconsideration by following the terms and procedure established in Act No. 170.

ARTICLE 28. IMMEDIATE ACTION PROCEDURE

Section 1. In cases in which the Board has made a ruling pursuant to Section 3.17 of Act No. 170, it will in that same ruling, notify all concerned parties and the recipient, of the hearing date in which it will determined if the resolution under reconsideration will be made permanent, left in effect temporarily or left without effect. This hearing will take place within ten (10) work days of the date of issuance of said resolution or immediate action order.
Section 2. Once the aforementioned hearing is concluded, the Official Examiner will determine the ulterior course of the proceedings.

ARTICLE 29. NOTIFICATIONS

Section 1. All notifications required by the proceedings pursuant to this Regulation, will be made by mail, unless the Official Examiner instructs otherwise.
Section 2. Immediate action resolutions or orders will be notified personally to the natural or legal person who is the defendant or opposing party in the proceedings.

ARTICLE 30. FINES AND SANCTIONS

The Board, in its quasi-judicial function, may impose sanctions in the following cases:

1. If the movement or opposing party of an action, failed to comply with the rules and regulations, or with any order issued by the Board or the Official Examiner, the Board may, by its own initiative or upon a party's request, impose an economic sanction in favor of the Board or any party, which shall not exceed two hundred dollars ($200.00) per separate sanction, on a party or its attorney, if the latter was responsible for the failure to comply.
2. If, after imposing economic sanctions and duly notifying the appropriate party, said party continues in violation, the Board may order the dismissal of movants action, or eliminate the opposing party's allegations.
3. Impose costs and attorney's fees.

ARTICLE 31. ADMINISTRATIVE FINES

Any violation to the Law administered by the Board and the regulations issued by virtue of the same, may be punished with administrative fines that shall not exceed five thousand dollars ($5,000.00) per violation.

ARTICLE 32. SEPARABILITY

A ruling from a competent court of law, which declares any disposition of the present regulation invalid, null or unconstitutional, shall not impact the remaining dispositions, which shall remain in full force and effect.

ARTICLE 33. EFFECTIVENESS

This Regulation shall begin to rule thirty (30) days after its presentation.

Ethics in Real Estate and our Ethics Regulation

ETHIC is one of the mandatory subjects for brokers' and salespersons' continuing education. It is also one of the most important subjects for the bar examination.

ARTICLE 1 PURPOSE

The purpose of this Regulation is to establish the norms that will regulate conduct of Real Estate Brokers, Salespersons and Companies in Puerto Rico.

ARTICLE 2 LEGAL AUTHORITY

This Regulation is adopted by virtue of subsection (N), ARTICLE 9, of Act No. 10 of April 26, 1994, also known as "Act to Regulate the Real Estate Business and the Real Estate Broker, Salesperson and Company Professions in Puerto Rico.”

ARTICLE 3 DEFINITIONS

Section 1. "Board" will mean Puerto Rico Board of Real Estate Brokers, Salespersons, and Companies.
Section 2. “Law”, will mean Act No. 10 of April 26, 1994.
Section 3. “Department”, will mean the Department of State.
Section 4. “Co-broke”, will mean business between brokers and salespersons or companies and brokers.
Section 5. “Principal”, will mean the broker, salesperson or company with exclusive authority to negotiate.
Section 6. “Exclusive”, will mean having an exclusive contract (being the only designated) to negotiate, a sale or lease contract for a property.
Section 7. “Offer”, will mean the specific amount of money they will be willing to offer to conduct the business.
Section 8. “Counter offer”, will mean the offer made by the seller or lessor

ARTICLE 4 ETHICAL CONDUCT REQUIRED FROM THE REAL ESTATE BROKER AND SALESPERSON – BROKER'S AND SALESPERSON'S RESPONSIBILITY:

Section 1. Must stay informed of legislation affecting their profession and their clients.
Section 2. Must protect and defend the interests of the principal client, without injuring the interests of others.
Section 3. Must not seek undue advantage.
Section 4. Must conduct business in a way that prevents controversy with others
Section 5. Shall obtain compensation from other sellers and buyers or lessors and lessees only when all parties are informed and agree to it.
Section 6. Must not hide information related to a property object of transaction.
Section 7. Must not discriminate by reason of gender, race, origins, religion, disability, nationality and age edad, when offering professional services.
Section 8 Brokers must hold money entrusted to them by third parties, as a deposit of a commercial transaction, in an escrow account, which may not generate interest and which must be separate from their personal accounts.
Section 9. Must not recommend that clients the use services rendered by organizations in which he or she has special interests in, without first disclosing said interest.
Section 10. Must be as clear as possible when promoting properties in the market.
Section 11. Must not offer any property, for sale or for rent, without previous authorization from the owner.
Section 12. Must not set signs or label any property, without previous authorization from the owner.
Section 13. Must not publicly discredit the business practice of a competitor, nor voluntarily express an opinion about a competitor's transaction.
Section 14. Must not disclose information or details obtained without previous authorization from the owner.
Section 15. Must not solicit a listing that has been granted exclusively to another broker or salesperson.
Section 16. Must present offers and counter offers in an objective manner.

In the event that they are charged with an alleged unethical practice or when required to show proof in any investigation, they must present all corresponding facts before a competent Court or the Board and will not intervene with or obstruct said process.

ARTICLE 5. BROKER'S ETHICAL CONDUCT

Section 1. Claiming to having sold a property when another had the exclusive right of sale, even when it's the result of a co-broke.
Section 2. Using the term "sold" on signs, ads or in any authorized way, only when they are the principal broker.
Section 3. Keeping clients informed of any advances in their transaction.
Section 4. Putting all agreement in writing and handing copies to both parties.
Section 5. Cooperating with other brokers when it is in the client's best interest.

ARTICLE 6. SEPARABILITY

ARTICLE 7. EFFECTIVENESS

This Regulation will begin to rule thirty (30) days after its approval.

Approved in San Juan, Puerto Rico on this 26th day of September of 1996.

Summarize in your own words regulations adopted for Act 10

Act No. 10 came to regulate real property processes and transactions in Puerto Rico.

Which tools were integrated by the studied regulations to achieve said purposes?
Briefly describe each regulation and its function in regulating the real estate business and profession.
Describe in detail the requirement to become a real estate broker and salesperson, as well as the license renovation process.

Answer

The tools that were used to regulate real estate processes and transactions under Act 10 are:

a) Regulation to Establish Course and Subject Requirements: establishing education requirements for natural persons wanting to take the bar, or renew their license; for accredited institutions providing the education; for becoming an accredited school.

b) Adjudicative Procedure to regulation the adjudicative procedures of the PR Board. Establish the process of how an adjudicative case is handled, what can happen during a hearing, who can be a part of the hearing, the role of the Official Examiner, what can happen to the hearing and how parties are notified, if one party fails to comply, legal representation, requirements and uses of evidence and records, legal conclusion description, what final orders are and what can be done afterwards, reconsideration requests, administrative fines and sanctions and when they would apply.

c) Ethics Regulation to establish norms to regulate the conduct of Real Estate Brokers, Salespersons, and Companies in Puerto Rico. Goes over the responsibilities of these parties to ensure ethical behavior and protect the client and their property.

To become a Real Estate Broker - the natural person must attend an accredited school that offers the required educational courses and complete a total of 90 class hours. Must file a sworn application, receive a certificate of criminal record, ASUME, must be 18 years or older, graduated high school, 60 college credits, pass bar exam, complete the 90 hours RE course at an accredited school, buy a $250 voucher, must have an escrow account, buy a $10,000 coverage bond, and 4 recent 2x2 pictures.To renew this license, they will be required to complete 6 hours of continued education per year. This could be from courses listed in section 2 of article 4. They may also obtain credit for these mandatory hours from attending conferences, prepping and teaching lectures, or even publishing a book or article.

To become a Real Estate Salesperson - the natural person must attend an accredited school that offers the required educational courses, labeled in section 2 of article 5 and complete a total of 60 class hours. They must also be 18 years or older, pass the bar exam, provide a clean criminal record, ASUME, graduate high school, present evidence of Broker's Escrow account, $10,000 coverage bond, $250 voucher, and 4 recent 2x2 photos. To renew this license, they will be required to complete 4 hours of continued education per year. This could be from the courses listed in section 2 of article 5. They may also obtain credit for these mandatory hours from attending conferences, prepping and teaching lectures, or even publishing a book or article.