Simple Check List for Condominium Buyers in Mexico From the Real Estate experts at MEXLAW
Condo life is not for everyone; it has some disadvantages, but it can also be a perfect way to vacation, invest or live in Mexico. Condominiums offer a low maintenance lifestyle with plenty of perks. Before you decide on a condo, do your research, review our checklist to see if your potential investment qualifies to be your new home. There are many important legal matters to deal with during a real estate purchase, which you will discuss with your attorney, but these simple points should be considered before you choose your condo.
Review The Condominium Regime.
This important document is the legal entity of ownership, both individual owners and common; it is registered by the Notario at the Public Registry of Property. The regime addresses all rules and regulations for the condominium and its owners and includes the building location, legal description, licenses, value of the property, rules regarding amending the regime, maintenance fees, building permits, appraisals as well as blueprints, by-laws and any legal matters regarding the development.
Request Meeting Minutes
Always request notarized copies of the meeting minutes, check for amendments, new laws, special assessments, fee changes or ongoing problems with the building and common area.
Check the Finances of the Development
Owners pay an HOA (Homeowners Association) fee each month; the fee goes towards maintenance and repairs of the complex and establishing a reserve fund. How much does the HOA have in a contingency fund? Is the complex in debt or do they have a sizable surplus? Confirm the HOA is financially sound with no overdue bills.
Be Aware of Special Assessments
When you are buying a condo, you need to consider the monthly HOA fee, as well as any unexpected costs that may come up in the case of emergency or major repairs, for instance, a new elevator or pool repairs. These special assessments are voted on but be prepared to pay your share. By reviewing the minutes of the HOA meetings, you will have some insight of any significant expenses that may be coming up.
Complex Insurance
Review the condo association’s insurance policy, consult an insurance specialist to assess what you will need to purchase to protect your unit. Will your insurance cover guests if you plan on renting your condo? In a tropical area be sure to inquire about hurricane insurance?
Get to Know Your Neighbour
We recommend speaking to the owners in the building, do they have complaints about the complex, are there ongoing issued that have not been resolved? Are repairs done in a timely manner? Are the owners respectful of each other?
Legal Issues
Does the HOA, development or contractor have any pending legal matters that may affect you as an owner?
All Those Rules and Regulations
Review the rights and obligations of the condo owners. How do you feel about the by-laws of this complex? Condominiums typically have strict rules and restrictions, make sure they suit your lifestyle.
- Can the condo be used as a vacation rental?
- Is there a limit to the number of guests you have in your unit?
- How many rentals are permitted in the complex?
- Does the HOA allow pets and are there any pet restrictions?
- Are dogs permitted in the common area?
- Which areas are considered the common area?
- Are there restrictions regarding guests in the common area?
- Is there secure parking, and is it included in your HOA fee?
The real estate lawyers at MEXLAW will protect your legal interests and assist with the understanding of the condominium regime. The lawyer also will investigate whether or not there are legal actions against the condominium corporation and secure your investment with a guaranteed title.