2024 TSPR 61
P.R.2024Background
- Several property owners in the Dorado del Mar residential community challenged a community association amendment banning short-term rentals (less than 6 months) within the development.
- The property owners argued the ban exceeded the association's authority and violated their constitutional right to use and enjoy their property.
- The original deed of restrictions (servidumbres en equidad) limits use to residential purposes, prohibits commercial activity, but does not restrict rental terms.
- The association defended the amendment as necessary for community security and asserted that short-term rentals are commercial use, which the deed forbids.
- Both the trial court and the court of appeals ruled for the association, holding that short-term rentals are commercial and thus properly banned.
- The Supreme Court of Puerto Rico reversed, holding that the lower courts erred in dismissing the property owners' complaint at the pleadings stage, and remanded for further proceedings to develop the factual record.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Can the HOA ban short-term rentals under its powers? | No, only deed restrictions can limit; association overstepped. | Yes, ban protects safety and peace of community. | Premature to decide; lower court must hear more evidence. |
| Are short-term rentals a commercial use? | No, residential use is defined by activity, not rental length. | Yes, renting short-term is commercial, thus forbidden. | Insufficiently resolved; requires further factual inquiry. |
| Does the HOA act violate constitutional property use? | Yes, ban limits fundamental property rights without authority. | No, only enforces permissible deed restrictions. | Not decided; further proceedings required. |
| Was dismissal on pleadings proper? | No, factual/legal issues require trial-level inquiry. | Yes, claim fails as matter of law. | Improper; case must proceed to fact development. |
Key Cases Cited
- Glines v. Matta, 19 DPR 409 (P.R. 1913) (First recognition of servidumbres en equidad in Puerto Rico)
- Rodríguez v. Gómez, 156 DPR 307 (P.R. 2002) (Requirements and contractual nature of restrictive covenants on land)
- Residentes Parkville v. Díaz, 159 DPR 374 (P.R. 2003) (Enforcement and interpretation of restrictive covenants)
- Fernández Martínez v. RAD-MAN San Juan III-D, LLC, 208 DPR 310 (P.R. 2021) (Scope of use restrictions and commercial/residential dichotomy)