Question 1

What does title insurance cover when buying property in Puerto Rico?

Accepted Answer

Title insurance protects against defects in ownership history, such as undisclosed liens, unpaid mortgages, boundary errors, forged documents, or competing ownership claims. An owner's policy protects the buyer's equity, while a lender's policy protects the mortgage holder. Unlike other insurance, it covers events that happened before the policy was issued.

Question 2

Is title insurance required in Puerto Rico?

Accepted Answer

It is not required by law, but mortgage lenders almost always require a lender's policy as a condition of financing. An owner's policy is optional and paid as a one-time premium at closing, and many buyers purchase one because Property Registry recordings in Puerto Rico can surface old liens, unresolved heirs, or boundary discrepancies years after a purchase.

Question 3

What should I do if someone makes a claim against my property's title?

Accepted Answer

Notify your title insurer immediately if you have a policy, because most policies require prompt notice and cover the cost of defending your ownership. An attorney can review the claim, quiet title in court if necessary, and resolve underlying defects such as liens, probate issues, or boundary disputes. Even without a policy, a real estate attorney can often clear the defect before it threatens your ownership.

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Frequently Asked Questions — Title Insurance

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