baja california sur condominium law

changes for 2016

by javier troncoso, attorney

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 regimes is oriented for 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 regimes 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,, when calling from the US or Abroad, call the Office at 011-52-624-142-4435.