What is a Condominium Regime:
This is the legal document which must be completed before an individual title can be granted out of the development. It must be made before a Mexican Notary Public and registered in the Property Tax office and Public Registry of Property.
By law it will contain the Descriptive Memory of the project. This means the measurements and description of the land, of each and every private unit and a description of the common property for the entire project. It also must include the Condominium Rules and Regulations.
This part outlines the rights and obligations of the condominium owners, it defines the type of administration to be in place and contains the necessary rules and regulations to promote the well-being of the community.
In Mexico direct ownership of the common property is the general rule. This means that certain property in the complex is owned in common in undivided interests by the individual homeowners. As an example, 25 condominium units and a common swimming pool and tennis court, in direct ownership each condominium owner owns his private space and a percentage of the common areas.
When the owner sells, leases, mortgages his own lot or condominium the owners percentage of the common area must be included. The common property cannot be severed from the individual lot or unit!
The common interest in the building normally will include: the foundation, roof, exterior walls, bearing walls even if located within the unit, common hallways, exterior doors, windows and all utilities and the pipes, ducts and wiring for same.
The individual owner’s unit will generally include all interior fixtures, improvements and personal property which is located within the three dimensional block of airspace. This will include built-in cabinets, plumbing fixtures, lighting fixtures and interior doors.
Homeowners are to be notified of the time for an annual meeting through registered mail ten days prior to the date of the meeting as well as to post the metting in local news paper. If 90% of the homeowners are not present, subsequent meetings can be called for the same day and decisions can be made on important issues by those present which will affect every owner in the complex. The Law of the Condominium Regime also provides for voting in proportion to the percentage of common property held by each owner. Voting must be direct and personal unless otherwise provided in the Regime. In other words, no proxies are permitted unless specifically stated in the Regime. A surveillance committee consisting of one to three parties must be elected at an annual meeting and is composed of owners who oversee the work of the administrators. A reserve fund must be established with funds invested in securities and readily available for required long – term repairs.
Maintenance fees must be paid for all common areas and failure to pay can result in loss of the unit. The law- provides that legal action may be taken against homeowners who fail to make three payments of monthly maintenance fees. Even if the homeowner is not happy with the administration of the complex, monthly maintenance fees must be paid.
Absentee owners with property in a foreign country should spend a few minutes to review the financial reports for their complex on a regular basis. When staying in the unit, they should open their eyes and review the condition of the complex. Is it well maintained? Or is maintenance being deferred? This will affect the value of the complex, and the value of the unit. More and more, absentee owners are selecting professional management companies to perform all administration and maintenance services rather than having these services performed by the Homeowner Association or its Board of Directors. This makes sense especially when properties represent a second or third home for the owners who wish to spend their limited time at the unit enjoying it….not managing it!
Condominium: Purchasing a condominium is possible by acquiring an interest in a property. Condominium regime's are public documents that have been notorized by a Mexican legal notary and are not legally obtainable until construction is complete.
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