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PC 92

Para añadir un segundo párrafo al inciso “b” de la Regla 51.7 de Procedimiento Civil, a los fines de fijar un tipo mínimo en las subastas en venta pública de bienes inmuebles cuando la deuda por cobrar no esté garantizada por hipoteca.

2025-2028 Session

Bill establishes minimum bid floors for public real estate auctions involving unsecured debts in Puerto Rico courts to prevent depressed-price sales.

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Bill Summary · PC 92

Legislative bill overview

Bill PC 92 proposes adding a second paragraph to Rule 51.7(b) of Puerto Rico's Civil Procedure Code to establish a minimum bid price in public auctions of real property when the debt being collected is not secured by a mortgage. Currently, unsecured debts may result in property sales at significantly depressed prices with no floor value protection.

Why is this important

This change affects debt collection processes in Puerto Rico's civil courts, particularly for creditors pursuing unsecured claims against debtors' real property. It directly impacts auction outcomes, potentially increasing recovery rates for unsecured creditors while also affecting the competitive landscape for property buyers and the protection of debtors' equity in their assets.

Potential points of contention

  • Debtor protection vs. creditor interests: Setting minimum bids protects debtors from fire-sale losses but may make it harder for creditors to recover unsecured debts, potentially affecting lending practices and credit availability
  • Auction participation concerns: Higher minimum bids may reduce bidder participation, potentially resulting in failed auctions and prolonged legal proceedings
  • Valuation methodology: The bill doesn't specify how the minimum bid will be calculated (assessed value, appraisal, percentage of market value), leaving implementation details unclear and vulnerable to disputes

Compiled from official sources — confirm details with the bill’s official record.

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