Situations we buy in
Sell a house without a use permit or with unpermitted construction in Puerto Rico
A house with no use permit (permiso de uso), or with a second floor, carport or addition built without a permit, can be sold. What usually cannot be done is selling it to someone who needs a loan, because the bank asks for the use permit and the appraisal does not count what is not permitted. That is why these houses sell for cash. We buy it as it stands, verify what is permitted and what is not, and the price reflects what it costs to legalize or what cannot be counted.
What is the use permit and who issues it?
The use permit is the authorization from the Permit Management Office (OGPe), or the autonomous municipality where it applies, certifying that a structure can be occupied for the stated use: residential, commercial, and so on. It comes from Act 161-2009, which reformed the whole permit process. A finished house without that permit is built, but not authorized.
Many houses in Puerto Rico, especially those built by the family on their own land before the nineties, never had a use permit. It is not rare and it is not a crime; it is a reality of the island. But it does complicate selling to a buyer with a loan.
Can I sell a house without a use permit?
Between private parties, yes. The law does not prohibit the sale of a structure without a permit; the deed can be executed and recorded. The problem is practical: the buyer's bank demands the permit, the appraiser does not value what is unpermitted, and the insurer may set conditions. A cash buyer takes on that risk with eyes open.
What we do check before buying is whether there is any OGPe or municipal order against the structure (fine, demolition order, complaint). That does change the offer or stop it. It is checked at OGPe with the catastro number.
What about the unpermitted second floor or addition?
The whole house can be sold, but the value of the unpermitted part is calculated differently: for a bank it is worth zero; for us it is worth what it costs to legalize minus the risk that it cannot be. Sometimes it pays to legalize before selling; sometimes it is not worth it. We tell you which is your case after the visit.
Legalizing is a filing at OGPe by an authorized professional (engineer or architect) who submits the existing construction for a permit. If the work meets code, it is granted; if not, corrections are required. We do not do it for you before closing; we do it ourselves afterward, which is why the price deducts it.
What if the construction is unfinished?
Half a house, exposed columns, a second floor in block with no roof. We buy them. A bank will not finance work in progress; we buy to finish it. What we need to know is whether there is a current or expired construction permit, because that defines whether the work can continue or a new permit is needed.
If the work stopped because the original owner passed away, the succession has to be resolved before selling: see selling an inherited house. If the house was never recorded in the Registry, see unregistered property.
How do you calculate the offer on an unpermitted house?
Value of the house as it can legally be sold, plus what the unpermitted part adds once legalized, minus the cost and risk of legalizing, minus repairs and debts. We show you every line. We will not tell you the second floor is worth nothing if it can be legalized, or that it is worth full value if it cannot.
The offer is written, good for 7 days, no obligation. If you have plans, photos of the work or any letter from OGPe, send them with the form; they speed things up.
Frequently asked questions
Let's talk about the house
Tell us the town, which part of the house is permitted and which is not (if you know), and whether there is any letter from OGPe or the municipality. We find out the rest.
Sources
- Act 161-2009, Puerto Rico Permit Process Reform Act
- Permit Management Office (OGPe)
- Act 210-2015, Property Registry Act (expediente de dominio, art. 185)
This is not legal or tax advice. It is general information so you understand the process; the advice comes from the attorney-notary who takes part in the transaction. Last reviewed: October 15, 2026.