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Recent
Law Which Regulates Condominiums in the State
of Nayarit - Part
I Formation of the Condominium
By Harriet Murray
August, 2004 |
 The state of Nayarit has seen
an enormous increase in condominium
development in the past 5 years.
With the establishment of the
Punta Mita market and the increase
in golf courses, and better
highways, condominium development
had become a large part of
the real estate inventory for
sale in Nayarit.
Developers such as El Faro
Real, Punta Vista II, Villas
Las Parotas, Casa del Sol,
Punta Mita Master Resort, Paradise
Village Palace Royale, Punta
Esmeralda, Flamingos Club Residential,
among others, are building
a large inventory of horizontal
and vertical condominium products.
The
revision of the condominium
law in Nayarit is a detailed,
well-conceived body of regulations
designed to protect the consumer
and owners of condominiums
in Nayarit.
The following is a summary
of some of the elements of
the law enacted and superseding
prior law before June 2002.
Condominium developments not
in compliance of the law change
were given a period of six
months after the 2002 law to
be in compliance. This current
law addresses many of the problems
encountered in the past by
government officials, developers,
and condominium owners. This
law is an evolution of further
problem solving of condominium
issues.
Vertical Condominium: A property
built on various levels on
land commonly owned. Each owner
has the right for private ownership
over his/her unit and right
to co-ownership of the land
and other common areas, according
to the deed and by-laws of
their condominium regime.
Horizontal Condominium: Property
built, developed, or planned,
where part of the land and
other property have exclusive
ownership. Each of the condominium
owners shall have a right to
private ownership of the land
of his/her individual unit
and in the co-ownership of
commons elements as defined
by the condominium deed and
by-laws.
Combination Condominium: This
type of property and ownership
is a combination of vertical
and horizontal condominiums
on the same land or in the
same building complex.
Types of use: Condominiums
may be residential, commercial,
industrial or a combination
of all types.
By-laws and the condominium
regime must be recorded as
a public deed, which specifically
includes the building permit,
location, dimensions, measurements,
and boundaries of the property,
as well as a general description
of the construction and quality
of materials. It shall also
include the description of
each unit of private property,
including location, boundaries,
measurements, places and spaces
for parking for specific identification.
The monetary value of a private
unit shall be listed, as well
as its percentage in relation
to the monetary value for the
entire property. The common
areas and improvements shall
be described in detail in the
public deed.
There is an obligation by
the condominium owners to contract
for insurance with a legitimate
authorized company against
earthquake, flood, explosion,
dire and third party damage.
The builders or those obligated
for the construction of the
project shall list their warranties,
as well.
The public deed shall note
the general plans authorized
with the permit from the government
agencies responsible for same
and include the plans for each
individual owned unit, as well
as plans for the sewer and
electrical installations, foundations,
gas lines, common areas as
certified by the federal agency
responsible for giving approval.
The bylaws, as well as contracts
of change of ownership or any
legal act that affects the
property or ownership, must
comply with the requirements
of this law and shall be registered
in the public registry.
Any changes in the deed or
by-laws must be agreed upon
during an extraordinary general
assembly in which at least
50% per cent, plus one owner
shall be in attendance. A minimum
vote of 75% of the total condominium
and a simple majority of the
total condominium owners is
required to pass an act.
The right of each condominium
owner over the common areas
shall be proportional to the
value of his/her individual
property as stated in the deed.
There is an additional requirement
that construction projects
or repairs shall not be done
at night, unless in the case
of an emergency.
The Laws of Ecological Protection
for the Environments is addressed.
Trees cannot be chopped down
or transplanted except in specific
instances. Parking in common
areas may not be marked by
boundaries or have coverings
unless an agreement is made
at a general assembly. Possession
of animals, that by their size,
number or nature affect the
security and well being of
the owners, are prohibited.
When a condominium owner does
not respect the legal use of
the common areas, he/she will
be liable under the law.
The law addresses the rights
of co-owners as well as renters
and occupants of a unit.
The law also addresses the
issue of a renter's priority
right to purchase the condominium,
if it becomes available for
sale. If the procedure is not
followed according to the law
in regard to the rights of
the tenant to purchase, the
sale can be in violation of
the law. The renter has the
right to sue for damages up
to a certain monetary amount.
The renter must follow the
law as well, or he/she shall
not be considered eligible
for damages.
Improvements to the common
areas may require payment by
the adjacent condominium owners.
In vertical condominiums where
the land is owned in common,
all condominium owners shall
pay for the common area projects
on it.
An interesting addition to
the law is that in vertical
condominium projects, the condominium
owners of private units located
on the first and top floors
shall not have more rights
than the rest of the condominium
owners. Unless it is otherwise
established in the by-laws,
the condominium owners on the
ground floor or top floor may
not occupy common areas in
an exclusive or preferential
manner. This affects designated
private use of common ground
floor areas and the rooftop
of the building.
The condominium owners must
agree to the repairs of the
construction of the common
areas and general utility installations
in the proportion that each
one represents within the total
development. There may be an
agreement to the contrary,
if said agreement does not
harm another owner. This clause
is attempting to address the
practice of owners paying the
same condominium dues, regardless
of the differences in sizes
of their private ownership
and their percentage of common
ownership.
A clause in the new law is
so specific as to state that,
in the case of eviction, the
owners shall be responsible
for cleaning of the unit.
Very important difference
from previously: the original
owner(s) of the condominium
shall be responsible for hidden
defects of the construction
for one year after the turnover
date of the property.
Owners are required to make
urgent repairs to common areas
or utilities if the administrator
is absent. This requirement
gives the owners more responsibility
in this type of situation.
The law does not allow owners
to blame the administrator
for damages when they are not
on the property.
All the condominium owners
shall pay for the expenses
that are part of the operating
and maintenance of the common
areas and utilities.
Professionals must be hired
to handle the maintenance of
common areas and utilities.
What is not covered specifically
in this body of law is covered
in the Civil Code for the State
of Nayarit and other applicable
laws.
This condominium law is more
advanced at this time than
the one in Jalisco.
This article is based upon
legal opinions, current
practices and my personal
experiences in the Puerto
Vallarta-Bahia de Banderas
areas. I recommend that each
potential buyer or seller
conduct his own due diligence
and review.
Harriet
Cochran Murray
For
additional information on
properties, for sale or lease
within the bay please visit Harriet
Murray website, call
or e-mail me at:harriet@casasandvillas.com
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