On August 22, 2016, a decree amending and adding several provisions to the Condominium Ownership Regime Law and to the Civil Code for the State of Baja California Sur was published in the Government’s Official Gazette of the state of Baja California Sur.
The approved condominium law amendments focus mainly in four important subjects:
a) Legal Capacity of the Condominium Regime. The condominium regime is now recognized as a legal entity allowing the regimes to have their own legal representation without the need of using non-profit entities (civil associations) which means that now condominium regimes should be eligible to have its own bank accounts, tax identification number and direct representation before third parties.
b) Creation of the “Touristic-Residential” Condominium Regime. This type of regime is oriented to new high-end developments allowing specific regulations for developers and making foreign and domestic investment more attractive.
It is important to mention that the founding condominium owner of the condominium regime may choose the touristic-residential condominium ownership regime exclusively in the following events: (i) in projects or developments with residential and/or commercial purposes where the amount of investment in construction works and land together is superior to 965,000 times the Current Unit of Measure and Daily Update in the State of Baja California Sur; or (ii) in projects or developments with preponderant touristic purposes that, in the opinion of the corresponding municipal and state authority, have an important economic impact for Los Cabos municipality.
This type of condominium regime may be organized, managed, and operated taking into consideration the project’s necessities such as (i) the manner in which the management of the condominium regimes will be carried out by the founder condominium owner or whoever such founder assigns; (ii) the events and procedures for the removal of the condominium regime administrator; (iii) the consequences for the lack of payment of maintenance and management dues; (iv) the vote in condominium owners’ meetings; (v) the manner and place of payment of condominium dues; (vi) the exceptions with respect to the payment of condominium dues in determined events; (vii) the rules of conduct, occupancy, and use within and outside of the individual condominium units; (viii) the rules for calling, holding, and decision making in condominium owners’ meetings; and (ix) the faculties of the condominium regime’s administrator.
c) Domicile of Choice for collection purposes. This inclusion allows the homeowners dues collection process take place in a more timely and cost efficient manner since judicial notification can be made directly at the condominium unit of a delinquent homeowner provided that the administrator of a corresponding condominium regimes maintains a condominium registry book containing among other information the domicile of choice given by the condominium owner to hear and receive any kind of notifications (including those related to the payment of condominium dues), summons, and subpoenas in connection to disputes arising from violations to the law, the articles of incorporation, or the regulations of the corresponding condominium regime; and
d) Amendment to General Sections of the Law. The enforcement of the regulations and remedies are more precise. Within the most important amendments are the following:
(i) Concept of Simple Majority and Special Majority: The condominium law sets forth these two new concepts as the quorum required for the decision taking by the condominium owners in a meeting. The owner may exercise its voting right provided that the owner is in good standing as to the regulations of the condominium ownership regime and up to date in the payment of condominium dues.
(ii) 50% of undivided ownership by a single owner. In the past, the condominium law stated that when a single condominium owner represented more than 50% of the condominium undivided ownership, it was required, in order for the resolutions to be valid, at least half of the votes representing the remaining of such undivided ownership. With the approved amendment to the condominium law, a single condominium owner representing more than 50% of the undivided ownership, may validly vote provided that the meeting is carried out before the presence a notary public.
(iii) Certificate of Design Guidelines Compliance. In addition to the condition consisting in obtaining a payment certificate of the condominium dues prior to approving a purchase deed (or trust deed “fideicomiso”), the condominium law included that a certificate of design guide compliance is also delivered prior to approving a sale in case that the corresponding condominium regime has existing design guidelines;
(iv) Voting by means of Electronic Vote. Notwithstanding that the Law already contemplated a complex system for carrying out an electronic vote, the new amendments provide the possibility that for purposes of voting in condominium owners’ meetings, the Articles of Incorporation or the Regulations of the Regime may provide the form in which such electronic voting is carried out by means of e- mail;
(v) Suspension of Services for delivery of Potable Water. The administrator of the condominium regime will have the faculty to suspend the delivery of potable water in such cases in which the infrastructure used for the delivery of potable water ha s not been transferred to the Potable Water Municipal System and an owner has not covered the fees for such services.
For more information please contact Lic. Javier Troncoso, Bufete Troncoso, firstname.lastname@example.org, when calling from the US or abroad, call the office at 011-52-624-142-4435.