If you own, are considering buying or plan to sell a condominium in Puerto Rico, a recent change to the Puerto Rico Condominium Act deserves your attention.
Act 157-2026 changes how certain condominium disputes will be handled. It also introduces provisions affecting condominium governance, managing agents and administrative responsibilities.
The law was signed on July 31, 2026, and is scheduled to take effect on October 28, 2026.
What Is the Main Change Under Act 157?
The most significant change is where certain condominium disputes will be resolved.
Covered challenges involving the actions or omissions of a Board of Directors, interim administrator or managing agent, as well as certain decisions of the Council of Owners, will move from the Puerto Rico Department of Consumer Affairs, commonly known as DACO, to specialized divisions of the Puerto Rico Court of First Instance.
The Puerto Rico Judicial Branch is directed to create a Specialized Division for the Adjudication of Condominium Disputes in each judicial region.
For condominium owners, this means that a covered disagreement that might previously have been handled as an administrative complaint may now proceed as a formal court case.
Court proceedings involve procedural rules, filing requirements, evidence and deadlines. Depending on the circumstances, they may also involve attorney’s fees and other litigation expenses.
Anyone facing an active or potential condominium dispute should consult a Puerto Rico attorney regarding the applicable requirements and deadlines.
What Happens to Existing DACO Complaints?
Complaints that were active before DACO on July 31, 2026, will generally continue in that forum.
However, Act 157 establishes a limited process through which an eligible party may request a transfer to the Puerto Rico Court of First Instance. The transfer procedure includes strict jurisdictional deadlines.
Anyone with an active DACO complaint should obtain legal guidance promptly to understand how the transitional provisions may apply.
Why Does Act 157 Matter to Condo Buyers?
Buying a condominium involves more than evaluating the apartment’s condition, layout and view.
A buyer should also investigate the building’s finances, governing documents, administrative practices and any circumstances that could create future expenses or affect the intended use of the property.
Before purchasing a condominium in Puerto Rico, buyers should consider asking:
- Are there current or anticipated special assessments?
- Are major repairs or capital projects being discussed?
- Does the condominium have active litigation?
- Do recent meeting minutes reveal recurring disputes?
- What restrictions appear in the master deed, bylaws and regulations?
- Are there concerns involving reserves, insurance or owner delinquencies?
- Could pending litigation affect expenses, financing or future marketability?
Documents should not simply be requested. They should be reviewed and understood before the buyer assumes the financial and legal responsibilities associated with the property.
For a broader due-diligence overview, read Buying a Condo in Condado: What Smart Buyers Check.
Can Condominium Litigation Affect a Sale?
Litigation involving a condominium may matter even when the seller is not personally named in the case.
Prospective buyers may have questions about the nature of the dispute, the condominium’s potential expenses and whether the matter could contribute to increased maintenance fees or a special assessment.
For sellers, understanding the condominium’s financial, legal and administrative situation before listing can help prevent surprises after a buyer submits an offer.
Preparing early may include gathering available information concerning:
- Maintenance fees and special assessments.
- Condominium rules and regulations.
- Recent notices or meeting minutes.
- Pending litigation.
- Insurance and building finances.
- Planned repairs or capital improvements.
- The effect of any pending matter will depend on the facts, the condominium’s financial position and the circumstances of the transaction.
Learn more about INCANTO’s seller representation services in Puerto Rico.
What Other Changes Does Act 157 Introduce?
Act 157 also includes several administrative and governance changes:
- Condominiums with more than 25 titleholders must elect at least a president, secretary and treasurer separately.
- The Council of Owners must establish minimum educational or course requirements when hiring a managing agent.
- A current Board member cannot simultaneously serve as the managing agent.
- Outgoing directors have specific responsibilities involving the transfer of records, information and banking documents.
- Condominiums must provide annual emergency-contact information to designated government offices.
- The Puerto Rico Department of Justice is directed to create a digital database of condominiums operating under the horizontal-property regime.
These changes may affect condominium Boards and administrators, but organized governance and accurate records also matter during a real estate transaction.
Watch the Café con INCANTO Conversation
In this episode of Café con INCANTO: Propiedades con Propósito, Mariela Arrojo and Pedro González speak with Puerto Rico attorney and notary José García Noya about how Act 157 may affect condominium owners, buyers and sellers.
The conversation explores:
- Why certain disputes are moving from DACO to court.
- Whether an owner may need legal representation.
- Why pursuing a claim could become more expensive.
- What buyers should investigate before purchasing an apartment.
- How litigation may affect a condominium and its marketability.
Thinking About Buying or Selling a Condo in Puerto Rico?
A condominium transaction involves more than evaluating the apartment.
The building’s finances, governing documents, assessments, pending disputes and administrative practices can all influence the decision to buy or sell.
INCANTO Real Estate & Relocation helps clients evaluate the real estate aspects of the transaction, identify relevant property-related information and coordinate with the appropriate professionals when legal, lending, insurance or inspection questions arise.
Book Your 15-Minute Conversation with Incanto
INCANTO Real Estate & Relocation
787-802-8017 | 787-637-6594
Disclaimer
This article is provided for general educational and informational purposes only and does not constitute legal, tax, financial or other professional advice. Consult the appropriate licensed professionals regarding your individual situation. Laws, regulations and procedures may change after publication.
