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Knowledge
is Power  Condominiums
are a large part of the real estate inventory in the Bay. The price range is wider,
so more people can afford this form of real estate. Condominium ownership can
require less overseeing by the owner. Some areas of town have declared a moratorium
on new buildings, while growing areas have a number of new projects to choose
from. Supply differs in one area to the next. The marina and downtown have a large
supply of condominiums in a wide range of prices.
To protect
condominium owners, the revised Civil Code of Jalisco provides a com-prehensive
description of what condominium ownerships means, and how owners can protect their
interests. In my experience, a number of buyers do not
take the time to learn the ins and outs of this body of law. It is to the owner's
benefit to be knowledgeable in the rules and regulations. This specific code protects
the interests of the condominium ownership as a whole. It is a mistake to assume
that the rules and laws for condominiums in the States are the same as in Mexico
Let's go through some basics of the condominium civil
code. The code defines a condo-minium regime legally and imposes responsibilities
and limitations of ownership. Each condominium unit represents
a percentage of the total individual ownership as well as a percentage of the
undivided common areas. The developer has to establish
a condo regime legally and obtain authorization from the city. The public document,
which becomes the condominium regime that setting out the rules and regulations
for the owners, includes: a description of the buildings, the project specifications,
the floor plans of the individual units and area in meters, the percentages of
individual units in relation to the whole, and the amount of common area in meters
and the percentage of common area owned by each unit. In some cases parking spaces
are deeded. When the building is finished, a certificate of completion is issued.
The city requires a warranty from the builder that he will finish the building.
This requirement of a warranty has the builder sign a promissory note to the city.
Most of us know that the condo regime also sets out the
rules and regulations for the owners to abide by. The owners may amend the rules
and regulations, if they are not in conflict with the civil code, as long as the
prescribed procedures for changing are followed. The rights of the owners to use
the common areas, within the described purposes, is as essential as the owners'
rights to enjoy their private area. The most fundamental
responsibility of the individual owner is to pay his maintenance fees. The
condominium will have an administrator appointed in the original regime, who can
serve for a period of one year, or when the owners hold their first annual meeting.
At this meeting, the owners can appoint their own administrator. The meeting in
which the administrator is appointed should be notarized. This gives the administrator
an official, legal identity to perform his/her duties. A power of attorney is
given to the administrator. An administrator can be an individual or a corporation.
Some of the duties of the admin-istrator are to: 1.
Abide by the resolutions taken by the owners at their annual ordinary and extra-
ordinary meetings. 2. Follow and enforce the resolutions
of the administrative committee. 3. Manage the daily
operations of the building and to authorize expenses for main-
tenance and
administration. 4. Collect dues and fees approved by the
association, and to keep a record of all income
and expenses.
5. Keep the minutes of all the meetings. 6. Provide
financial reporting to the owners who request it times after every quarter.
These reports include not only income and expenses, but accounts receivable.
Accounts receivable include the list of owners who are behind in their dues and
fees.
The report should also give the cash balance available. The
executive board, or the administrative committee is comprised of owners or residents
who serve with the permission of the owners. The members must be current in their
maintenance fees. This board have the responsibility to: 1.
Represent the homeowners in all matters of common interest. They are given a judicial
and administrative power of attorney to act for the owners. 2.
See that the administrator fulfills his duties. 3. Meet
with the administrator a minimum of once a month to receive a report on the status
of the condominium. 4. Verify the accounting records. 5.
Revise the maintenance fees and the reserve funds. 6.
Assist the administrator in assuring that all homeowners fulfill their obligations. 7.
Report in the annual general meeting of all the business that has been done during
the prior year. To also report at this meeting on the general and financial conditions
of the building. 8. Authorize any agreements to allow
a third party the use of the common areas. 9. Authorize,
when appropriate, the administrator to issue specific powers of attorney to other
individuals who will further represent the condominium. These people may be attorneys
or accountants or other professional representing the condominium as a group. The
General Homeowners Meetings. The homeowners meetings are
the top authority for the running of the building. Meetings are ordinary and extraordinary.
There will be at least one ordinary meeting a year, held within the first 3 months
of every year. General meeting agenda: 1.
Reports from the administrator and the executive committee.
2. Election of
the executive committee.
3. Election of the administrator
4. The approval
of the budget for the coming year. Notices for the ordinary
meeting are legal if at the first meeting, there is are at least 51% of the condominium
rights represented. If 51% are not present, a second meeting will be scheduled
no sooner than 7 days or later than 14 days. At this second meeting, the majority
of the homeowners or their representatives who are present shall be declared a
majority. The general meeting will take place in the same
city as the condominium is in. The notice for the meeting shall be issued at least
15 days prior. Extraordinary Meeting: Is held at any time
when the following events need the home-owner's attention: Notice should be 20
days before the meeting. The agenda can include: 1. Modification
of the condominium Bylaws.
2. Approval of any improvements
3. To modify
or dispose of the common areas
4. To vote on the dissolution of the condo
regime
5. To approve the addition of new common areas
6. To request a
civil judge to make an owner sell his rights to the property
7. To approve
the rebuilding of the building if it has been damaged
8. Other problems or
questions that are of concern to the homeowners. An extraordinary
meeting may take place with whatever number of homeowners attend. However, for
a proposal to be legal, 75 percent of the ownership must vote and approve it. Besides
the notices to the individual owners for both types of meetings, a copy should
be posted in visible places within the condominium. An owner can require that
the administrator notify him by certified mail. Notice
must include the date, time and place of the meeting, the type of meeting and
the agenda. Items OFF the agenda cannot be binding unless 100% of the homeowners
are present to make the decision. This is a critical point to understand when
voting on issues of importance. Maintenance Fees The
homeowners shall pay maintenance fees. The condo dues and reserve fund are determined
on the percentage of ownership of an individual unit to the whole condo regime.
Dues and the reserve fee are paid in advance. If the
condominium expenses exceed the income, the homeowners are required to cover the
expenses as an extraordinary mainten-ance fee. In Case
of disagreement: 1. For controversies among homeowners,
they shall be subject to the executive com-mittee's judgment.
2. The city
secretary will judge conflicts within the condominiums in the city.
3. The
civil code and Jalisco code will be followed.
4. Other conflicts, such as
a dispute with a utility authority or a disputed charge for products or services,
shall be decided by the city judicial legal system. The
administrator can take to court homeowners or their guests, who continue to fail
to fulfill their obligations or follow the condominium bylaws. The condominium
can ask the judge to force the homeowner to sell his condominium ownership. This
is a strong position that the owners in general can take to remove an owner who
disturbs or destroys the right of enjoyable use by the majority of owners.
A tenant can be required to vacate a unit. The condominium can sue the owner,
if they oppose such an action. Decisions made at legally
constituted meetings are legal and binding to all the ownership, whether they
present or not. This applies to third parties or unknown owners as well.
If you own or are considering buying a condominium, ask about the condominium
laws and the condominium regime rules and regulations, where you are considering
a purchase. Harriet Murray,
Broker For additional information
on properties for sale or lease within the bay, please call or e-mail me at: harriet@pvmirror.com
Thanks and until next week. Archives
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