We now have many new condos, and more are being built. The demand continues as foreigners look for ways to have a primary or second home on a beach in North America.
Never has it been more important to know the laws on condominium ownership. Please learn the ones in your state, Jalisco or Nayarit. These laws are intelligent and address significant issues. Do not use any other laws, and certainly not those for the USA or Canada.
The General Homeowners Meetings
Homeowner 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:
- Reports from the administrator and the executive committee.
- Election of the executive committee.
- Election of the administrator
- The approval of the budget for the coming year.
Notices for the ordinary meeting are legal if, at the first meeting, at least 51% of the condominium rights are 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, most 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 located. The notice for the meeting shall be issued at least 15 days prior.
Extraordinary Meeting
An extraordinary meeting is held when the following events need the homeowner’s attention: Notice should be 20 days before the meeting. The agenda can include:
- Modification of the condominium Bylaws
- Approval of any improvements
- To modify or dispose of the common areas
- To vote on the dissolution of the condo regime
- To approve the addition of new common areas
- To request a civil judge to make an owner sell his rights to the property
- To approve the rebuilding of the building if it has been damaged
- 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 maintenance fee.
In Case of Disagreement
- Controversies among homeowners shall be subject to the executive committee’s judgment.
- The city secretary will judge conflicts within the condominiums in the city.
- The civil code and Jalisco code will be followed.
- 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 most 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 are 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. Please check if there is any update of the law through 2022 to be correct on what you follow.
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.