A The Condominium

Many condominiums are being developed, built, sold and occupied every day. The rapid development of this type of real estate has to do with the interest foreigners show in Puerto Vallarta as a retirement destination. Perfect weather from Mid October to Mid June., nice beaches, friendly locals and good health, food and entertainment services.

Condos are better for many people, since most of the foreigner-oriented buildings will hire a part or full time administrator to handle the common areas, pay services, employees and the government among other things, making the owners life easier. The owners most important obligation will be to pay their maintenance fees.

In 1995 the New Civil Code for the state of Jalisco established in its six chapter: THE CONDOMINIUM.

This section explains the condominium and its parts; sets the duties of the administrator and Administration Committee, the authority of the Homeowners ordinary and extraordinary meetings, the obligation to pay maintenance fees and the rights of the homeowners.

The code establishes that a “Condominium” is a judicial regime that imposes limitations and ownership modalities to a building.

The owners of property in a condominium receive the name of “condóminos”.

Each unit owner shall be entitled to an undivided interest in the common areas and facilities in the percentage set forth in the condominium regime (master deed). Such percentage shall be in the approximate relation to the size of the unit

The percentage of the interest of each unit owner in the common areas and facilities as expressed in the condominium regime cannot be divided nor can it be separated from the Condominium Regime. The common property intends to provide the owners with comfort and enjoyment. Common areas need to be fully described in the Condominium Regime

In order for a developer to establish a condominium regime, it is necessary to have full rights to the subject property and obtain authorization from the city among other things. The public document must include the following: I.- Title search and the documents showing ownership. II.- The exact lot location, size and limits. It also should include any documents granting concessions to water, beaches, islands, etc., which are of public domain. III. A general description of all the buildings, the equipment, and the quality of the materials used to build. IV. A description of all private units must include the following: the number of the unit, its location in the building, the size, the limits, type of materials used inside and the rights (percentage) that the owner will have to the common areas. The description should include the percentage in relation to the building. V.- When a private area, is not within the unit, (Lockers, parking lots, etc.) it will be identified with the number of the unit. VI. A description of all the common areas, including sizes, limits, restrictions, infrastructure, equipment, decoration, furniture, etc. Also, whenever possible, it should include the name of the manufacturers and an inventory of the common property. VII.- The city authorization to constitute the condominium regime, licenses and expert builders authorizations that apply. IX.- The construction licenses and building permits. If the building is finished, the certificate showing it can be occupied. X.- The description of the warranty that the builder provides to the city, taking responsibility for finishing the building, as well as for the quality of the materials used in the construction. XI. Establish rules and regulations.

Each unit owner may use the common areas and facilities in accordance with their intended purposes without being deemed thereby to be hindering or encroaching upon the lawful rights of the other unit owners. The rights of the owners to the common areas are as essential as the rights to their private property. The non use of the common areas or services, will not exclude the owner from the obligation to pay maintenance fees.

THE ADMINISTRATION.

The condominium will have an administrator appointed at the owners annual meeting. It can be an individual or a corporation. The first administrator will be appointed by the builder, who can be the administrator for one year.

The administrator has the following obligations:

I.- To be the executor of all the resolutions taken by the annual ordinary and extraordinary meetings and the administrative committee. The administrator will have a power of attorney;
II. To verify and control the daily operation of the condominium, maintenance, general service and the conservation of the building;
III.- To authorize the maintenance and administration expenses;
IV. To collect all fees approved and provide receipts to the homeowners ;
V. To keep a record of all accounting and the minutes of all the assemblies meetings. Computer software can be used to help organize the expenses and income of the condominium;
VI.- To issue, within the first half of the following months: April, July, October and January of each year, to the owners who require it, a statement with the following information;

a).- A detailed report of all the expenses for the last quarter.
b).- A detailed report of the income and the maintenance fees due.
c).- A detailed statement with the names of the debtors and the origin of such debt.
d).- The cash balance available.

VIII Convoke to any general ordinary and extraordinary meetings.
IX.- Assist or provide assistance to any specific committee.
X. Any other action that this code, the condominium regime or the rules and regulations may establish.

The act in which the annual meeting appoints the administrator, should be notarized.

THE ADMINISTRATION COMMITTEE.

The number of members on the administration committee will be what the condominium regime establishes.

In order to be appointed a member of the committee, it is required to be a homeowner or live in the condominium and have the permission of the owner. All members units should be up-to-date with their maintenance fees.

The member position is non-transferable and honorarium. However, the general annual meeting can decide to provide all or some members with remuneration for their work.

The administration committee will have the following obligations:

I. They will permanently represent the homeowners in all common interest matters. For this purpose they will be given a judicial and administrative power of attorney;
II.- They will observe that the administrator fulfills his duties. The committee will ask the administrator for reports showing the progress of his work;
III. They will meet with the administrator at least once a month, who must provide an oral or written statement on the conditions of the condominium; They should verify the accounting records.
IV. They will revise the investment records, the maintenance fees and the reserve funds;
V.- They will assist the administration in providing that all homeowners fulfill their obligations;
VI.- Inform the annual general meeting, at any time during the first 3 months of each year, of all the work that was done during the last year. Also the condominium general and financial status;
VII. The committee will authorize any contracts allowing a third party the use of the common areas.

Any contracts signed against the rules and regulations of the condominium regime will be null and void.

The committee will authorize the administrator to issue specific powers of attorney to individuals, such power of attorney will only be issued for the representation and defense of the condominium. The administrator can be authorized to give specific power of attorney to other people, such as attorneys and accountants.

The power of attorney issued to represent the condominium will allow the empowered people to answer and to ask any questions in the name of the condominium. It allows him/her to present any criminal suits and to help the prosecutors office, to obtain goods at the best quotation, to sign transactions agreements, go to court or waive any habeas corpus conflicts,

THE GENERAL HOMEOWNERS MEETINGS.

The homeowners meeting is the supreme administration authority. The meetings will be ordinary and extraordinary.

There will be at least one ordinary meeting a year. It will be held, within the first 3 months of every year. This meeting will discuss the following issues:

I.- The reports from the administrator and administration committee regarding the status of the condominium;
II.- The election of the administration committee;
III.- The election of the administrator;
IV.- The approval of the budget for the following year.

The extraordinary meeting will be held at any time if the following events need the homeowners attention:

I.- Modify the condominium Bylaws;
II.- To approve any improvements;
III. To dispose or to modify the common areas;
IV. To vote on the extinction of the condominium regime;
V. To approve adding new common areas to the condominium;
VI. To request a civil judge to make an owner sell his rights to the property;
VII. To approve the reconstruction of the building;
VIII. All other problems or questions of interest to the homeowners.

The general meetings notices will be issued by:

I.- The administrator,
II.- The administration committee.
III.- A judge, when at least 1/5 of the homeowners request a meeting and there has not been one for more than a year.

An ordinary assembly will be declared legal, on first call, if there is at least 51% percent of the condominium rights represented. If the above percentage is not fulfilled, a second meeting will be scheduled to take place not before 7 days nor after 14 days of the first one. On the second call, the majority vote of the present homeowners or their representatives will be legal.

The extraordinary meeting will take place with the number of homeowners that attend. However, for a proposal to be legal, 75% of the condominium rights (ownership) must vote and approve it.

The agreements taken at a legally constituted meeting will be legal to all homeowners, including those not present or unknown owners or third parties using a unit.

The assembly will be presided over by the person named by the majority of the homeowners. The administrator can be appointed as the president of the assembly.

The general meeting will take place in the same city the condominium is in. The assembly should be held in the condominium building, unless it is more comfortable to have it somewhere else. The notice to an ordinary meeting should be issued at least 15 days before the meeting. The notice of an extraordinary meeting should be issued 20 days before the meeting. A copy of the notice will be posted in visible places within the condominium. If a homeowner wants to be notified by certified mail, the administration has the obligation to do it.

The notices must include: the date, time, and place of the meeting. The type of meeting and the agenda.

Anything not on the agenda and that is voted in the meeting will not have any legal validity, unless 100% of the homeowners are present.

MAINTENANCE FEES.

The homeowners shall contribute to the maintenance and expenses related to the services and maintenance of the condominium. The owners must constitute a reserve fund based on their percentage to the regime.

All fees should be paid in advance. The payments shall be on the dates established for that purpose. If the payment is not on time, a late fee will apply.

The condominium obligations will be charged to the common fund. In the event the fund is insufficient, the homeowners shall cover the balance (extraordinary maintenance fees).

CONFLICTS

The following rules apply to any condominium conflicts:

I.- Any controversies among homeowners shall be subject to the administration committee judgment;
II. The city secretary will judge all conflicts in municipal condominiums;
III. The Jalisco proceedings code will be supplemental to the civil code, and
IV. All other conflicts shall be judged by the city's judicial system.

Homeowners (or their guests) who constantly fail to fulfil the condominiums by-laws or obligations, can be taken to court by the administrator. The condominium can ask the judge to force the homeowner to sell his condominium property.

If the conflict-causing person is not an owner, the condominium will demand the vacancy of the unit. The legal owner will be notified. If the owner opposes, the condominium can sue the owner too.

This is only a small part of what the Civil Code for the State of Jalisco establishes for Condominium Buildings. I wanted to keep it as simple and understandable as possible. I always recommend the use of a Real Estate Attorney when purchasing Real Estate in México.

ALEJANDRO NIÑO MERINO.