The Condominium Regime in Mexico
What is the condominium regime and why is it important?
The condominium regime is a document granted by a Notario Publico and recorded in the Public Property Registry, and until the developer has received the regime, the new buyers do not have legal title to the property. In some instances this process can take up to six months.
Once the state and local municipalities approve the project, the regime is the legal approval issued by the government.
The regime contains the rules and regulations of the development. It also includes the legal documents of the property including location, description and measurements of the property, including the private units and common areas of the complex. The regime also contains construction or renovation permits, licenses, the blueprints, a common shares table, and the appraisal.
Detailed procedures are outlined in the regime regarding the collection of maintenance fees and the reserve fund, including the amount and schedule of payments, as well as the processes of voting on a surveillance committee, holding assemblies, bylaws and the process for changing or updating the bylaws, the rules of common areas, and any issues foreseen by the law and the condominium regime.
It should contain detailed rights and obligations of the owners, providing the legal description of the private units and identifies the percentage of the common property corresponding to each owner. This rate is typically used to determine the voting right the owner has in the assemblies and defines the co-owners’ common property expenses/fees.
The condominium regime is constituted on real estate that because of its physical characteristics, allows its owners both the exclusive use of the private property, as well the use of the common areas which are undivided. It grants each condominium owner exclusive property rights over the individual unit, as well as the right of co-ownership of assets regarding common areas or facilities.
The condominiums may be of progressive social housing type, social interest, residential, high residential and country, industrial or agro-industry, supply, trade, services and mixed.
According to the nature of the development, the condominiums will be of private order – those that constitute the private ones, and of public order – those established by institutions or public agencies of the federal government, the state or municipalities.
The condominiums by their structure may be:
- Vertical condominium: the modality in which each condominium owner is the exclusive owner of a floor, apartment, house or premises of a building, and also co-owner of its common elements or parts, as well as of the land and facilities of general use.
- Horizontal condominium: the modality in which each condominium owner is the exclusive owner of an area deprived of the land and, if applicable, of the building that is built on it, while co-owner of the areas, buildings, and facilities of common use.
III. Mixed condominium: the combination of the same property of the modalities indicated in the previous fractions.
The condominiums shall be administered by a management committee or by an administrator appointed by the General Assembly, for a determined time, except when the designation is in a condominium, in which case it shall last from one to three years, determined by the assembly.
All joint owners are obligated to contribute to the constitution of the administration and maintenance funds and reserve funds, as well as to cover the quotas established for that purpose by the assembly. Delinquent owners will be subject to legal action and risk the loss of their unit.
Condominium property regimes and condominium assemblies are of paramount importance to organize and coordinate a condominium, including the owners of each unit and achieve a harmonious environment.