Tuesday, August 24, 2010

English Translation of Nayarit Condo Law

LAW REGULATING CONDOMINIUM REAL ESTATE PROPERTY FOR THE STATE OF NAYARIT

ORIGINAL TEXT


The Law published in the third section of the Official Periodical of the State of Nayarit on Wednesday the 12th of June, 2002.

C.P. ANTONIO ECHEVERRIA DOMINGUEZ, Constitutional Governor of the Free and Sovereign State of Nayarit, makes know to the inhabitants thereof:

That the Local Congress, has directed the enactment of the following:

Decree Number 8432.

The Honorable Congress of the Free and Sovereign State of Nayarit, represented by the XXVI Legislature


D E C R E E

LAW REGULATING CONDOMINIUM REAL ESTATE PROPERTY FOR THE STATE OF NAYARIT


TITLE ONE

GENERAL PROVISIONS

ONLY CHAPTER

Article 1 – The provisions of this Law are in the interest of public and social order; and have the general objective the constitution, modification, organization, function, administration and termination of the condominium property Regime; in all forms, vertical, horizontal and mixed; as well as the rights and obligations of the condominium owners.

Article 2 – For the purposes of this Law it is understood that:

I. Law: that regulates the Property Regimen of Condominium Real Estate Property for the State Of Nayarit;

II. Condominium: A group of apartments, dwellings, houses, locales or spaces of fixed property, constructed vertically, horizontally or mixed, having the independent advantage of having their own entrances opening into a common area or to a public street, and that can be owned by different property owners, those who would have the sole and exclusive rights to the property, over his private (exclusive) unit of property and, in addition the right of joint-ownership over the elements and common areas of the property, necessary for its adequate and enjoyable use,

III. Conjoined Condominiums: All those groups of two or more condominiums constructed on a single property, whenever each has areas for exclusive use, and at the same time common use areas exist for all condominium owners that integrate a conjoined (point) reference.

IV. Condominium Owner: An individual or corporate taxpayer that is the property owner and legitimate possessor of one or more portions of a condominium , be it vertical, horizontal and mixed;

V. Private (exclusive) Property: Real Estate for private use of each of the condominium owners:

VI. Common Use Real Estate: Are those that belong in a co-owned form to the condominium owners and their use is regulated by the Condominium Act (Regime) or by the Condominium and Administrative By- Laws

VII. Joint Ownership: For the purposes of this Law joint ownership of the common real estate that belong to the undivided condominiums; that is to say, without material division of the parts;

VIII. Shared Part: The right of the condominium owners over the common real estate, in proportion to the value that their unit or fraction in relation to the total value of the condominium;

IX. Assembly: Meeting of the condominium owner called in advance that is held to propose, discuss and in some cases to resolve issues of common interest to the condominium owners;

X. Customary Fees: Amount proportionate to the value of the condominium owners private (exclusive) real estate to absorb the expenses of administration, maintenance, and operation according to the establishment of the Condominium Act (Regime) or in the Condominium and Administration By-Laws;

XI. Additional (extraordinary) Contribution: Amount proportionate to the value of the condominium owners private (exclusive) property to absorb Additional (extraordinary) expenses for additions, conservation and repositioning of real estate and equipment that, with prior approval of the Condominium General Assembly, are considered appropriate contributions to increase the value of the investment or is that which can be paid off in two or more annual periods;

XII. Voluntary Termination: The dissolution of the condominium property system;

XIII. Simple Majority: 50% plus one of the total votes or condominium owners, whatever the case;

XIV. By-Laws: The Condominium and Administrative By-Laws, which is the legal instrument that complements and specifies the dispositions of this Law and the Condominium Act (Regime), in accordance with the characteristics of each Condominium;

XV. Private (exclusive) Property Unit: Is the apartment (condominium), house or locale and the elements annexed that belong to the Condominium over which the Condominium has property rights and exclusive use.


TITLE TWO

THE CONDOMINIUM PROPERTY REGIMEN

CHAPTER I

CONSTITUTION, DISCIPLINES AND TERMINATION

Article 3 - The Rights and Obligations of the condominium owners are governed by the dispositions of this Law, and by default, by the Civil Code of the State Nayarit, other applicable Laws such as the Condominium Regimen, the contract of transition of authority and by the By-Laws that relates thereto.

Article 4 – The essential characteristics of the Condominium Regime are the following:

I. The right of co-ownership of common elements of the property only will be transferable, taxable or able to be seized, jointly with the singular private (exclusive) property unit, which is considered an inseparable annex. The co-ownership of the common elements of the property is not dividable; and
II. In the transfer, taxation or seizure of a singular and private (exclusive) property unit, it is understood that, invariably, the rights over the common property in the respective proportion will be annexed

Article 5 – The Condominium Property Act (Regime) is the legal, formal act by means of which the property owner or owners of a property, manifest before a Notary Public its intention to establish this type of property for its best utilization and in which, two or more persons having private rights, utilize and share areas or space for common use and common ownership, assuming conditions that permit them to satisfy their needs in accordance with the use of the property, in a convenient and correct form for everyone, without devaluing their private (exclusive) property.

Article 6 – The Condominiums in accordance with their structural characteristics and use can be:

I. By their structure:

a. Vertical Condominium: That property constructed with several levels on a common piece of land; and at the same time coexists with private (exclusive) property units, provided that it complies with the corresponding legal requirements. In this case, each of the condominium owners will have private (exclusive) property rights over his unit, and in addition rights over common property on the land and other elements and common parts of the property necessary for its correct use and enjoyment, in accordance with the Condominium Act (Regime) and the corresponding By-Laws.

b. Horizontal Condominium: That property intended to be constructed in a horizontal form, where parts of the land and other property are susceptible to exclusive appropriation coexisting with the right of co-ownership of the common elements. In that case, each of the condominium owners will have exclusive property rights over the land of their individual property and over that which is in the building, and the right to co-ownership of the common elements under the terms of the Condominium Act (Regime) or the By-Laws.

c. Mixed Condominium: Originate when the same land or condominium property has both required conditions of vertical and horizontal condominiums, due to specifying each of them. In that case the dispositions relating to vertical and horizontal condominiums will be applicable to each of the buildings or parts thereof

II. About their Use:

a. Habitation: Those in which the private (exclusive) property units are intended as homes;

b. Commercial or Service: Those in which the single property units are intended for industry or services according to their activity;

c. Industrial: Those in which the single property units are intended to their own industrial activities; and

d. Mixed: Those in which the single property units are intended for two or more of those described in the previous paragraphs.

Article 7 – Social characteristics that are subject to the dispositions established in chapter XI of this Law:

I. Condominiums intended predominantly to be homes of a public and popular nature, classified as such in accordance with the federal and local legislation on the subject; and

II. Those that because of the socioeconomic characteristics of their condominiums are recognized as being of public (housing) nature by the corresponding authority, in accordance with the criteria issued for this purpose.

Article 8 – In the Condominium Act (Regime), each owner will enjoy his rights as a property owner, under the conditions provided in the Civil Code for the State of Nayarit. For that reason, can transfer ownership, mortgage or be taxed in whatever form their apartment, dwelling, house, lot or locale, respecting the rights of others in terms provided by this Law and other applicable ordinances, and make, with respect to the unit of single private property, all contracts with those to whom common rights are referred, with the limitations established by the Law. In the transfer of ownership or taxation of an apartment, dwelling, house or locale, common rights that are annexed to them are understood as invariably understood.

The right of co-ownership of the common parts of the property will only be transferable or taxable to third parties jointly with the individual property of an apartment, dwelling, house, lot or locale, with respect to which is considered as an inseparable annex. The co-ownership of the common areas of the property is not sub dividable.


Article 9 – The Regime of Condominium property can be organized:

I. When the different apartments, dwellings, houses, lots or locales that comprise a building or that could have been constructed on a property with common use areas, belong to different property owners.

II. When the different apartments, dwellings, houses, lots or locales that are constructed within a property but having common, undividable parts, whose property is reserved under the terms of the third article of this Law, are designated for the transfer to individual persons; and

III. When the property owner or owners of a property divide it into individual apartments, dwellings, houses, lots or locales to transfer ownership to individual persons, whenever a common area of property exists that is undividable.

Article 10 – To constitute the Regime of condominium property (Condominium Act), the property owner or owners should manifest their intention public writing, in which the following invariably appears:

I. The construction license, or if missing, the record of regularization of construction;

II. The location, dimensions, measurements, boundaries and adjoining areas of the property that are subject to the Regime. If this is situated inside of a conjoined area or living unit its separation from the remainder of the areas should be specified exactly;

III. A general description of the construction and the quality of the materials used or are going to be used;

IV. The description of each single property unit, number, location, boundaries, measurements, areas and spaces for parking that comprises it and any other necessary data that allows its identification;

V. The establishment of zones, installations or suitability for fulfillment of the norms established to facilitate the use of the property by disabled persons.

VI. The price value assigned to each single property unit and its undividable percentage in relation to the price value of the entire property;

VII. The characteristics of the condominium in accordance with that established in Articles 6 and 7 of this Law, such as the purpose of each of the units of the private (exclusive) property;

VIII. The description of the possessions of the common property, purpose, specifications, locations, measurements, components and all information that allows for its easy identification;

IX. The cases and conditions under which the Condominium Act (Regime) and By-Laws can be modified;

X. The obligation of the condominium to contract with security police with a company legally authorized, insure against earthquake, flood, explosions, fire and coverage for third party injury;

XI. The characteristics of the financial policy that should show the obligations to respond to the construction work, as well as to its defects;

XII. The cases and conditions under which the Condominium Act (Regime) can be modified;

XIII. Appendices added to the Condominium Act (Regime) should be signed by the parties and certified, and include the general plans duly authorized by the correct authority, the technical accounting and the plans belonging to each of the private (exclusive) property, plans for hydraulic, electrical, structural, gas and common area installations; as well as the regulations, certified by a Notary Public.

Copies certified by a Notary of the previous documentation and others that are judged necessary will be delivered to the administrator for the duty of carrying out his job.

Article 11 – The formal Condominium Act (Regime) as well as property transfer contracts and other acts that affect the property or control of those properties, in addition to comply with the requirements and motives of this Law, should be registered in the Public Registry of Property.

Whatever modification of the Condominium Act (Regime) and its By-Laws, will be agreed upon in a extraordinary General Assembly, to which at least a simple majority of the condominium owners should attend and its resolutions require a minimum of votes that represent 75% of the value of the total condominium and a simple majority of the condominium owners to be obligatory.

Article 12 – In all contracts for the acquisition of rights over the apartments, dwelling, houses, lots or locales subject to the Condominium Act (Regime), the declarations and conducent clauses of the Condominium Act (Regime) shall be inserted, making them part of the record, and a copy of the Condominium Act (Regime) and By-Laws, certified by a Notary Public, will be delivered to the interested party, assuming the consequence of the acquisition of all rights and obligations in its contents.

Article 13 – The voluntary termination of the Condominium Act (Regime) will require a unanimous accord of the condominium owners. The termination of the Condominium Act (Regime) shall appear in public records, be recorded in the Public Registry of Property and the corresponding authority notified, depending on the case.




CHAPTER II

THE QUALITY OF THE CONDOMINIUM AND THE PRIVATE (EXCLUSIVE) PROPERTY AND THE COMMON USE PROPERTY

Article 14 – The occupants of the apartments, dwellings, houses or locales that are current in their obligations will have preferential rights to become condominium owners or in such case, to maintain under the terms of the Law or the respective contract their normal physical possession of the property.

Article 15 – The corresponding elements annexed such as parking, maintenance area, housekeeping room, administrative offices, utility cages, laundry rooms and whatever other area that is not a common area and that forms part of the unit of private (exclusive) property, according to the Condominium Act (Regime) and those that cannot be subject to transfer of property, rental, or used in an independent form are considered part of the integrated parts of the property rights and exclusive use of the condominium owners.

Article 16 – The right of each condominium owner over the common areas will be proportional to the value of his individual property, affixed in the Condominium Act (Regime).

Each condominium owner and in general the occupants of the condominium can use the common areas and enjoy the services and general installations according to their nature and original purpose without restrictions or making onerous the rights of others, however being subject to the sanctions detailed in this Law, without detriment to the responsibilities under the civil or penal order that could be incurred.

Every condominium owner can do all classes of work and repairs to the interior of his apartment, living space, house, lot or locale, observing that provided in the following article.

The previous norms apply to every conducent, to the horizontal condominiums or mixed as much as with respect to maintenance and care of the common areas, as the work on private (exclusive) property of each condominium owner, those that shall submit to the limitations indicated in the By-Laws.

Article 17 – Each condominium owner or occupant will use the apartment, dwelling, house, lot or locale in an orderly and tranquil fashion, cannot consequently, use it in a manner contrary to the Law, to moral or good customs, nor subject it to objectives differing from the expressed agreements, or that presume on the nature of the condominium and its location, nor can:

I. Perform any act that affects the tranquility and comfort of the other condominium owners or occupants or that compromises the stability, security, health or comfort of the condominium, nor commit omissions that produce the same results;

II. Perform any act, on the exterior or interior of the unit of private (exclusive) property that impedes or makes ineffectual the operation of the common services and general installations, disturb or make difficult the use of the common areas or put at risk the security or tranquility of the condominium owners or occupants;

III. Perform work, construction, or modifications in the interior of the unit of private (exclusive) property like opening spaces, such as doors and windows, among others, that affect the structure, load bearing walls or other essential elements of the building that could endanger its stability, security, health or comfort;

IV. Perform work or repairs during nocturnal hours, except in cases of unusual circumstances.

V. Decorate, paint or perform work that modify the outward appearance or the exterior walls discordant with the adjoining units or that violates that established and approved by the General Assembly;

VI. Cut down or transplant trees, change the natural use of the green areas in contradiction to that stipulated in the Law of Ecological Equilibrium and Protection of the Environment of the state of Nayarit and in the Condominium Act (Regime); nevertheless, in the case of the trees representing a risk for the construction or for the condominiums, or are in bad plant health condition in accordance with the dictates of the responsible authority, the General Assembly will determine the most suitable actions to take;

VII. The parking areas in the areas of common use cannot be bordered by or covered by any type of material without the accord of the General Assembly;

VIII. Possession of animals that for their number, size or nature affect the conditions of security, health or comfort of the condominium or the condominium owners;

IX. Perform work on individual property that could put in danger the security and stability of the building causing danger or risk to the inhabitants of the condominium, or does not allow the conservation of the common zones or its landscaping, as well as that which condominiums have done in common areas that affect the comfortable transit in the condominium, those that impede permanently the use of a part of the common area or common service, even though there is only one owner, and those that devalue whatever private (exclusive) part of a condominium unit.


In the last cases the work can be performed only with a unanimous agreement of the condominium owners in a General Assembly and finally, in addition, indemnify those affected to their complete satisfaction

Article 18 – When a condominium owner does not exercise his rights or renounces the use of the determined common property, he will continue to be subject to the obligations imposed on him by this Law, the Condominium Act (Regime), By-Laws and the other applicable legal dispositions.

Article 19 – The condominium owner or occupant of an apartment, dwelling, house, lot or locale can use and occupy it with the limitations and prohibitions that are established by this Law, the Condominium Act (Regime), and the By-Laws; but cannot sell or rent part of the same such as parts or bedrooms and service quarters, with the exception of areas designed to be parking for vehicles that can be rented to another condominium owner.

The condominium and its renter or whatever other person who benefits from the use of the condominium will agree among themselves who should comply with the determined obligations to the other condominium owners, and in which case the user would have the representation of the condominium owner in the assemblies that are held, but the user will be jointly responsible at all times for the obligations of the condominium, both will promptly notify the administrator of the situation for the purpose of effects that take place.

Article 20 – The rights (to the property) of the co-owners will have priority over the preferential rights of the occupant to an onerous title. Regarding the sale of a unit of private (exclusive) property when rented will be the following:

If two or more co-owners exist who are interested in exercising rights over the same (property), preference will be given to the owner with longer ownership.

In the case that two or more co-owners exist with the same length of ownership, the one that legitamently notifies the bidder first of his willingness to make use of this (property) rights will have the rights.

In the case that no interest exists on the part of the co-owners of the condominium unit, and once the term of fifteen days from the notification to exercise this right has expired, this benefit will pass to the renter due to the following:

I. If the private (exclusive) property unit is destined for a use different from inhabitation, that which is set forth by the Civil Code of the State of Nayarit will apply as well as the other related dispositions.

II. If the private (exclusive) property use is destined to be an inhabited home the following terms will apply:

a. In all cases the condominium owner should give notice in writing to the renter of his desire to sell his unit of private (exclusive) property, giving the price, terms, conditions and terms of the sale;

b. The renter will have fifteen normal days to advise the condominium owner of his willingness to exercise the preferential right that is allocated to him by this Article in the terms and conditions of the offer, exhibiting the amount payable on demand at the moment of acceptance of the offer, in accordance with the conditions set forth in this Law;

c. When the condominium owner changes any of the terms of the initial offer, he will be obligated to give a new notification in writing to the renter who, beginning from that time, will have another term of fifteen normal days. If the change refers to the price, the condominium owner will only be obligated to give a new notification when the increment or decrease is more than ten percent;

d. The buying and selling that takes place in contradiction to that set forth in this Article grant to the renter the right to seek compensation for damages and harm, without indemnification covering those circumstances they could be less than 50% of the rent paid by the renter in the last twelve months. The action before mentioned allows the expiration of thirty normal days after the renter has knowledge of the respective buying and selling. The right of the renter will be precluded when he does not comply with the conditions established in sections b and c of this article.

Article 21 – Performance of work that is required on stairways, floors, pavement or other adjoining divisions of the condominiums, such as the cost, will be obligations for the bordering condominiums, whenever the performance of the work does not result from damages caused by one of the condominium owners.

In the condominiums constructed vertically, the work required on the exterior of the roofs and the basements will be charged to all of the condominium owners.

CHAPTER III

PROPERTY CONSIDERED COMMON PROPERTY

Article 22 – The following are the object of common property:

I. In the vertical condominium:

a. The entire piece of land;
b. The cement structures, load bearing walls, general use roofs, basements, porticos, entryway doors, vestibules, galleries, hallways, stairways, gardens, paths and streets that are for general use;
c. Works, installations, apparatuses, and other objects that function for common use or enjoyment, like septic systems, wells, cisterns, water tanks, elevators, freight elevators, incinerators, stoves, ovens, pumps, motors, sewers, Canals, water distribution ducts, drainage, heating, electricity, cable television, Internet networks and gas;
d. Spaces for a common patio, and vehicle parking will always be for general use;
e. Locales allocated for administration, reception, accommodation for the doorman and security guards; and
f. Whatever parts of the property understood in the Condominium Act (Regime) to be common property and those that are unanimously resolved by the condominium owners to be for common use and enjoyment.

II. In the horizontal condominium:

a. Land that is not understood as private (exclusive) property of the condominium units;
b. Doors, gardens, paths, walking paths, and interior streets that are for general use;
c. Installations, apparatuses and work for security, sports, recreation, ornamentation, reception or social gatherings that function as areas of common use and enjoyment;
d. Water distribution ducts, drainage ducts, heating ducts, cable television, Internet networks and gas, with the exception of those that serve only a single condominium unit;
e. Spaces for vehicle parking are always for general use;
f. Locales intended for administration and accommodation for the doorman and security guards; and
g. Whatever parts of the property understood in the Condominium Act (Regime) to be common property and those that are unanimously resolved by the condominium owners to be for common use and enjoyment.

III. In terrain condominiums;

a. The areas of the terrain intended for internal connection and connection with public byways such as those that do not form part of the condominium units;
b. Porticos, installations, apparatuses and works for security, sports, recreation, ornamentation, reception, social gatherings that are for general use and enjoyment;
c. Water distribution ducts, drainage ducts, heating and gas ducts;
d. Spaces for vehicle parking are always for general use;
e. Whatever parts of the property understood in the Condominium Act (Regime) to be common property and those that are unanimously resolved by the condominium owners to be for common use and enjoyment.

The condominium owners will oversee and make demands of the administrator by means of the Vigilance Committee or General Assembly, who will keep a complete, current inventory with all the furniture, apparatuses, and installations described, including those newly acquired and those disposed of.

Article 23 – Are about only common property of the bordering condominiums; the floors, walls and other divisions that separate the apartments, dwellings, houses or locales.

In the condominiums constructed vertically, the condominiums situated in the first and last floors will not have more rights than the remaining condominiums. Except that which is established in the By-Laws, the condominiums on the first floor cannot occupy for personal, exclusive or preferential use over the remaining condominiums the vestibules, basements, gardens, patios, nor other like places nor perform work on said locations. Equally, the condominiums on the top floor cannot occupy the roof or terrace, build new floors nor perform other construction. The same restrictions apply to the remaining condominiums in the property.

Article 24 – In order to perform work on the common property or general installations, the following rules will be observed:

I. For work necessary to maintain the condominium in good, secure condition, stability and conservation, such as for the purpose of having the services function normally and efficiently, the administrator will first obtain a license from the authorized municipal department, with the conformity of the Vigilance Committee being sufficient without the necessity of the agreement of the condominium owners. The charge will be from the maintenance and administration account. When said account is not sufficient or unanticipated work is necessary, the administrator will call an assembly meeting with the purpose of, in conformity with the terms of the By-Laws, to resolve the issue.

The condominium owners can agree to the repairs of construction defects on common property and general installations, in the proportion that each represents in the total value of the condominium, except in the case of a pact to the contrary and without prejudice to demand responsibility of the transferee;
II. The property owner or owners of the condominium in the case of transfer of ownership will respond because of repairs in a case for eviction.

Regarding new construction, the original property owner or owners of the condominium will be responsible for the defects or hidden construction defects, eliminating corresponding actions one year after the delivery of the affected area.

The condominium owners can agree to the repair of the construction defects on the common property and general installations in the proportion that each represents in the total value of the condominium except in the case of a pact to the contrary and without prejudice to demand responsibility of the transferee;

III. To perform work that, although the result in a better appearance or more comfort, does not increase the value of the condominium, or work that is not necessary that do increase the value, a 51% total of condominium owners’ votes are required, gathered in the assembly, according to the terms of Section III of Article 27 of this Law;

IV. Urgent repairs to the common property or general installations can be ordered by the condominium owners in the event that administrative order is lacking.



Under no circumstances no work that could put the stability, conservation, security or comfort of the condominium in danger, such as that which impedes permanently the use of a common area or service, even though it is only one owner, nor that devalues any apartment, living area, house, lot or locale. In the latter cases, the work can be finished however if a unanimous accord exists between the condominium owners and finally, that affected is indemnified to everyone’s complete satisfaction;

V. The operational, repair, conservation, vigilance and maintenance expenses of the installations and general services, such as the common areas and property, will be covered by all of the condominium owners as established in Article 44 of this Law;

VI. The operational, repair, conservation, vigilance and maintenance expenses of the general installations and services intended to service only one section of the condominium will be covered by all of the condominium owners of that section in accordance with that established in Article 44 of this Law;

VII. With regard to the expenses that originate from the provision of electrical energy, water and other (services) in the common areas or property will be covered in accordance with that established in sections V and VI of this Article. The provider or lender of the service will include the respective amount in an invoice or receipt that each individual condominium owner requests for the service to his private (exclusive) property unit;

VIII. Contracts can be made with the responsible authorities to establish services for control and vigilance in the gardens, parks, walkways, plazas, parking areas and other areas that form part of the common use zones and elements, with prior approval agreed upon by the General Assembly. That does not impede the same assembly from contracting professional services for these purposes;

IX. When because necessary urban development requires the opening of a public byway, garden, parks, urban equipment and services in an area of the condominium, the public administration shall make an agreement with the condominium for the use and enjoyment of common areas without devaluing the property, requiring the authorization of an extraordinary General Assembly that is attended by a simple majority of the condominium owners and the approval by a vote that represents a minimum of at least 75% of the total value of the condominium and a simple majority of the condominium owners.

CHAPTER IV

ASSEMBLIES

Article 25 – The Condominium Act (Regime) shall stipulate the characteristics and conditions for the organization and public function of the condominium. The ruling authority of the condominium is the General Assembly of the Condominium Owners.

The assemblies can be:

I. Ordinary, that are held every six months, having the purpose of informing about the state of the administration of the condominium, such as regarding issues concerning it; and

II. Extraordinary that are held in whichever of the following examples:

a. To approve the modification of the Condominium Act (Regime) or its By-Laws;
b. To approve the voluntary termination of the Condominium Act (Regime);
c. To approve new work;
d. To agree officially on actions in the case of destruction, demolition, ruin or reconstruction;
e. When there are issues of an urgent nature that require attention.


Article 26 – Also, other types of assemblies can be held that are always subject to the General Assembly and that are governed by that established in this Law and the By-Laws, which are:

I. Those for administrators: Held in the case of condominium meeting to deal with issues relative to the common use areas of the community. They shall be called by the administration committee of the condominium;

II. Those for a section or group: Held when the condominium is composed of different buildings, blocks, wings, etc., when they deal with issues of internal areas in common that only give service to or serve one building, block or wing. They shall be called by the administrator and his decisions can in no way contradict the decisions of the General Assembly of the condominium or affect it; and

III. Without prejudice to the applicable dispositions of the condominium assemblies, those can agree upon other mechanisms and forms to make decisions and agreements for the best administration of the condominiums.

Article 27 – The general assemblies are governed by the following dispositions:

I. They shall be presided over by whoever calls them and lacking this, by whomever the assembly designates. The shall have a secretary and designated examiners;

II. The resolutions of that are made by the assembly shall be made by a simple majority of the votes present, except in the cases where this Law, the Condominium Act (Regime), or By-Laws establishes a special majority;

III. Each condominium shall have the number of votes equal to the percentage of the whole that his private (exclusive) property unit represents to the total value of the condominium as established in the Condominium Act (Regime);

IV. Voting shall be private, nominal and direct. The By-Laws can authorize the representation, but in no case, can one single person represent more condominium owners, with a simple proxy. In no case can the administrator represent a condominium owner in an assembly;

V. When a condominium owners is a designated administrator, member of the Administration Committee or Vigilance Committee, he should demonstrate that he is current in his maintenance and administration fees and those in reserves;

VI. In those cases that only one condominium owner represents more than 50% of the votes and the remaining condominium owners do not attend the General Assembly, previously announced in accordance with this Law, the assembly shall be held under the terms of Article 28, section IV;

VII. When only one condominium owner represents more tan 50% of the votes and the remaining total value of the votes of the condominium attend, for the agreements to be valid at least half of the remaining votes are required. When less than 75% of the total value of the condominium are in attendance, a second notice of the General Assembly will proceed, in which to be valid the agreements require at least 75% of the votes of those attending. When no agreement is arrived at, the condominium majority or the minority group can submit the discrepancy to arbitration indicated in this Law or in the civil courts if that is the case, in accordance with Article 24 of this Law;

VIII. The secretary of the assembly shall record the minutes of the assembly in the book of minutes that has been authorized for that purpose by the assembly. The minutes shall be signed by the president and the secretary, by the members of the Vigilance Committee, that attend and the condominium owners that request it; and

IX. The administrator shall always have the book of minutes easily accessible for the condominium owners and shall inform them in writing of each of the resolutions that are adopted by the assembly. The resulting minutes shall be recorded before a Notary Public under any of the following supposed instances:

a. When the Condominium Act (Regime) is modified. In this case, it shall be registered in the Public Register of Property in addition; or
b. When the Condominium By-Laws are modified.

Article 28 – The notices for holding of general assemblies will be done according to the following provisions:

I. The notice shall indicate the type of assembly that will be held, the place in which it will be held inside the condominium, or that which is established in the By-Laws, such as the date and time that it will be held, including the order of the day and who is calling the assembly;

II. The condominium owners or their representatives will be notified by means of the notice being delivered to the respective unit of private (exclusive) property. In addition, the person giving notice of the assembly will post the notice in one or more place that is visible to all in the condominium or, in those places established in the By-Laws;

III. The following can give notice of an assembly in accordance with that established by this Law:
a. The Administrator;
b. The Vigilance Committee; or
c. At least 25% of the total of the condominium owners.

IV. When the assembly is held in virtue of the first notice, an attendance of 75% of the condominium owners, when a second call is given a quorum will consist of a simple majority of the total condominium owners. In the case of a third call, the assembly shall be declared legally installed with those condominium owners in attendance and the resolutions will be made with a majority of those present.

The determinations adopted by the assemblies under the terms of this Law, the By-Laws and other applicable legal dispositions, obligate all of the condominium owners, including those absent and dissenters.

The notices to hold assemblies shall be issued eight natural days in advance of the date of the first assembly. Between the second notice and the holding of the respective assembly a minimum time period of one half hour and between the third notice and its being held the same amount of time will be required;

V. In cases of extreme emergency, established by the By-Laws, notices will be given for the assembly with advance notice that the circumstances demand, remaining subject to the remaining dispositions of this Law and the By-Laws;

VI. When because of the importance of the issue or issues to be dealt with by the assembly, when considered necessary, the administrator or at least 25% of the condominium owners can request the presence of a fedatario public (Notary Public/Judge/Government Official); and

VII. In the case of extraordinary general assemblies referred to in Article 25 of this Law, the regulations for the setting of a quorum and voting are subject to the dispositions that in each case are determined by the corresponding Articles.

Article 29 – The General Assembly will have the following powers:

I. To modify the Condominium Act (Regime) and approve or change the By-Laws of same;

II. To freely name or remove the administrator or administrators, under the terms of this Law, the Condominium Act (Regime) and the By-Laws;

III. To fix the salary of the administrator;

IV. To define the obligations and powers of the administrator over third persons and that which is necessary with respect to the condominiums, in agreement with the Condominium Act (Regime) and the By-Laws;
V. To establish the fees to be charged to the condominium owners, determining the system of collecting them that would be considered the most correct and efficient according to the characteristics of the condominium. As well as fix the delinquency rates that the condominium owners will pay in the event of noncompliance in the payment of fees. And establish the form of guaranteeing with deposits or whatever other legal means, the payment of same.

VI. To name and remove the members of the Vigilance Committee;

VII. To decide the kind and amount of guarantee that the administrator shall stipulate with respect to the faithful performance of his assignment, and to the management of the accounts in his charge;

VIII. To examine and, if called for, approve the state of accounts that the administrator submits for its consideration, such as the annual report of the activities of the Vigilance Committee;

IX. To discuss and, if called for, approve the annual budget for the following year;

X. To instruct the Vigilance Committee or whoever is designated to do so to proceed before the correct authorities when the administrator or administrators infringe upon this Law, the By-Laws, the Condominium Act (Regime) and whatever other applicable legal dispositions;

XI. To adopt the conducive measures about issues of common interest that are found understood among the conferred functions of the administrator; and

XII. The rest that is conferred upon it by this Law, the By-Laws, the Condominium Act (Regime), and other applicable dispositions.

Article 30 – The condominium owners’ right to vote is suspended, still conserving the right to a voice, with prior notification to the interested party in order to manifest that which is agreed upon regarding their right and the approval of the General Assembly, in the following cases:

I. For failure to pay the fees and for the maintenance and administration account and the reserve account;

II. For failure to pay two or more of special fees according to the established time tables; and

III. When by judicial judgment or administrative binding arbitration duly executed, damages have been awarded to the condominium and they have not been paid by the condominium owner.

Under these suppositions the condominium owners will not be considered for an installation quorum of the assembly.

CHAPTER V

THE NAMING OF AND POWERS OF THE ADMINISTRATOR

Article 31 – The condominiums shall be administered by a physical (individual) or moral (company) person that is designated by the Condominium Assembly.

In the case of new construction of Condominium Property Regime, the first administrator will be designated by whoever executes the Condominium Act (Regime).

Article 32 – To carry out the charge of administrator, the following requirements shall be satisfied:

I. In the case of a physical person (individual) and being a condominium owner he shall prove that his fees are paid;

II. In the case of a physical person (individual) from outside of the condominium or a moral person (company), his condominium administration experience shall be accredited in the judgment of the Assembly and grant bond that guarantees an amount equivalent to one year of ordinary contributions of the condominium owners; and

III. Not have been convicted for the commission of any patrimonial crimes or crimes related to the administration of others’ property.

Article 33 – When the General Assembly decides to contract professional services for its administration, the Vigilance Committee shall make the corresponding contract in conformance with the applicable law.

Article 34 – The administrator when not a condominium owner, will have a period of no more than thirty natural days, beginning from the date of the signing of the contract, to deliver to the Vigilance Committee the corresponding bond (insurance).

The administrator, being a condominium owner, will serve a term of one year and it will be possible to be reappointed for only one additional consecutive period. It would be possible at a later time to be elected for other periods that are not consecutive.

Article 35 – Duties of the administrator:

I. To duly keep the minutes of the Assemblies and a register of creditors, duly authorized by a Notary Public (fedatario público) of the municipality where the condominium is located, within the first month that the credit accounts are set up or in January of each year, contributed to the assemblies. In this register the agreement of the creditor and debtor will be annotated regarding the outstanding balances and in case of a discrepancy or renunciation of the debtor to express his intention, reconcile the balances that are determined by the Vigilance Committee, indicating the portion belonging to the creditor and debtor, with respect to the votes attributed to apartment, living space, house or locale referred to; for the purposes of expected voting in this section, these entries will only be valid for the trimester during which carried out, of which the administrator will issue a receipt to the creditor concerned;

II. Care for and watch over the property of the condominium and the common services, promoting the integration, organization and development of the community.

III. To keep and conserve the books and documentation related to the condominium, which shall be at all times at the disposition of the condominium owners, registered creditors, for their review;

IV. To perform all administrative and conservation acts in relation to the condominium;

V. To attend to the operation and maintenance of the installations and general services;

VI. To execute the agreements of the Assembly;

VII. To collect the condominium fees that belong to each condominium owner for the maintenance and administration fees and the reserves;

VIII. To pay the maintenance and administration expenses charged to the corresponding account, under the terms of the By-Laws;

IX. To give a receipt to each of the condominium owners for the amounts that they have contributed for the previous month for the maintenance and administration accounts and the reserve account, said receipts will show the balances charged to each condominium;

X. To deliver monthly to each condominium owner, requesting proof from the person who receives it, a statement of account that includes:

a. A detailed statement of the previous months expenses that were charged to the maintenance and administration account;

b. Consolidated statement that shows the amounts of the contributions and fees that are pending; the administrator will have it at his disposition of the condominium owners who wish to consult it, a report that prove the amounts that each contributed for the maintenance and administration accounts and the reserve, showing the balances of pending bills to be paid; and

c. The balance of the maintenance and administration accounts, and what expenses he has designated to be paid in the coming month or under such instance, the amount and related debts to be covered.

d. The condominium owner will have a period of five days beginning from the day of the presentation of said documentation, to formulate his observations or objections that he considers pertinent, after said period has passed, it will be considered that he is in agreement with the documentation, less the approval of the Assembly;

XI. To convene an Assembly, with at least ten days advance notice from the date that it is intended to be held, indicating the place in the condominium or that which has been designated in the By-Laws, as well as the time in which to respond, with the inclusion of the order of the day; the condominium owners and registered creditors or their representatives will be notified at the location to the end of having been indicated, by means of written notification.

In addition to the delivery of the previous notice, the administrator will hang the notification in one or more visible locations in the condominium.

In the case of emergency the Assembly will be convened with the advanced notification that the are determined by the circumstances;

XII. To demand condominium owners’ take responsibility for infractions in accordance with the dispositions of Article 17 of this Law; and

XIII. To perform the inherent obligations under his charge and be vigilant about the due observance of this Law, the Condominium Act (Regime), the By-Laws, the Assembly and Vigilance Committee accords and in addition any applicable legal dispositions.

Article 36 – When the condominium Assembly designates a new administration, the outgoing administration shall deliver, in a period of time that does not exceed seven natural days from the designated date, all documents including the statement of accounts, values, furniture, real estate and other property that was under its control and responsibility; said delivery can only be postponed by judicial resolution. To verify the delivery – receipt an affidavit shall be drawn up before a Notary Public (fedatario public) or two witnesses.

CHAPTER VI

THE VIGILANCE COMMITTEE

Article 37 – The condominiums shall have a Vigilance Committee comprised of two up to five condominium owners, depending on the number of units in the private (exclusive) property, designating among them a president and the others acting as members, who will act in concert and their function will be rotated.

Article 38 – The naming of the members of the Vigilance Committee will be for a term of one year, performing in an honorable manner. None of the members can be reelected for a consecutive term.

Article 39 – The Vigilance Committee will have the following powers and obligations:

I. To assure that the administrator complies with the accords of the General Assembly, as well as the other duties that this Law, the Condominium Act (Regime) and By-Laws impose;

II. To verify the state of accounts that the administrator shall present before the Assembly;

III. To verify/check the investment of the maintenance and administration accounts and the reserve (account);

IV. To give account to the Assembly of its observations about the administration of the condominium;

V. To inform the Assembly of noncompliance of the obligations of the condominium owners drawn to its attention by the administrator;

VI. To assist the administrator in making observations to the condominium owners about their compliance to their obligations;

VII. To convene the Assembly of condominium owners when required and the administrator does not do it within the following three days;

VIII. To inform the Assembly of irregularities that the administrator has incurred, with notification to him so that he can appear before the Assembly;

IX. The other (powers and obligations) derived from this Law, the Condominium Act (Regime) and the By-Laws.

CHAPTER VII

THE BY-LAWS (REGULATONS)

Article 40 – The approval of the By-Laws will be by those who execute the Condominium Act (Regime). Whatever modification to the By-Laws will be agreed upon in an extraordinary General Assembly at which at least a simple majority of condominium owners shall be in attendance. The resolutions require a minimum of votes that represent 51% of the undivided value of the condominium.

Article 41 – Without transgressing that established by this Law, by the Condominium Act (Regime), and by the dispositions that by the specific characteristics pertain to the condominium, the By-Laws will contain at least:

I. The rights, obligations and limitations to which the condominium owners are subject in the exercise of the right to use the common property and the land;

II. The procedure to collect the fees for the administration and maintenance accounts, the reserve (account), as well as the Additional (extraordinary) (fees);

III. The amount and frequency of collection of the fees for the administration and maintenance accounts and the reserve (account);

IV. The appropriate methods for the best administration, maintenance and operation of the condominium;

V. The necessary dispositions that propitiate the integration, organization and development of the community;

VI. The general criteria that the administrator is subject to for the contracting of third parties for locales, spaces or common property installations that are rented or loaned;
VII. The type of Assemblies that are held;

VIII. The type of administration;

IX. Other obligations and requirements for the administration and members of the Vigilance Committee, in addition to those established by this Law;

X. Causes for the removal or rescission of the administrator’s contract and the members of the Vigilance Committee;

XI. The basis for the modification of the By-Laws in conformation to that established in the Condominium Act (Regime);

XII. The establishment of provisional measures in the case of a temporary absence of the administrator;

XIII. The determination of the criteria for the use of common areas, especially those that will be designated for the exclusive use of handicapped persons, whether they be condominium owners or family members that live with them;

XIV. Determine, in such event, the rules and limitations to have animals in the units of private (exclusive) property or the common areas;

XV. The contributions for the constitution of the maintenance and administration accounts and the reserve (account);

XVI. The determination of the criteria for issues that require a special majority in case of voting and not provided for in this Law;

XVII. The basis for the integration of an internal program for civil protection, as well as, in such case, the formation of Civil Protection Committees and public security; and

XVIII. The matters that reserved to the Condominium Act (Regime) and this Law.

Article 42 – The By-Laws (Regulations) should form part of the appendix of the Condominium Act (Regime) conforming to that established in the second to last paragraph of Article 10 of this Law;

Article 43 – To modify the By-Laws (Regulations) of the condominium, the proposed modifications shall be included in the notification of the Assembly to be held. The modification of agreements requires the same percentage of votes as established for the creation of By-Laws (Regulations).

All modifications shall be registered in the Public Register of Property.


CHAPTER VIII

EXPENSES, OBLIGATIONS AND CONTROVERSIES

Article 44 – The contribution of the fees of the condominium owners shall be established for:

I. Constituting the administration and maintenance account designated to cover the usual expenses that are generated by the administration, operation and non individualized services for the common areas of the condominium. The amount of the fees charged to each condominium will be established by distributing the expenses in proportion to the undivided percentage represented by each unit of private (exclusive) property;

II. Constituting the reserve account, designated to cover the expenses of acquisition of implements and machines needed by the condominium, projects, maintenance and major repairs. The amount of the fee is established in proportion with the undivided percentage represented by each unit of private (exclusive) property;


III. Additional (extraordinary) expenses that occur when:

a. The administrative and maintenance accounts are not sufficient to cover an addition (extraordinary), running expense. The amount of the fee will be established in proportion with the undivided percentage that each unit of private (exclusive) property represents; or

b. The reserve account is not sufficient to cover the purchase of some implement, completion of a project, maintenance and major repairs. The amount of the fee will be distributed according to that established for the reserve account.

Article 45 – The administration and maintenance fees will not be subject to compensation, personal exceptions or any other reason that could excuse the payment.

Article 46 – When a condominium consists of different parts and includes several stairways, patios, gardens, Works and installations, such as elevators, freight elevators and other elements or apparatuses designated solely for one part of the whole (condominium), the related special expenses will be charged to the group of benefiting condominium owners. The By-Laws (Regulations) will establish the specific norms for sharing this type of expense.

Article 47 – Both accounts, when not being used, can be invested in stocks appearing to be of minimum risk, reserving the necessary liquidity to settle the short term obligations. The type of investment will be authorized by the Vigilance Committee.

The General Assembly will determine annually the percentage of the profit or gains obtained from the investments and from the rent of the common use property that should be applied to each of the condominium accounts.

Article 48 – The fees for common expenses that condominium owners do not cover promptly will be subject to interest legally determined or fixed in the By-Laws (Regulations) or in agreement with the Assembly that decrees the amount of the fee.

Bring prepared the execution of, via civil executory, the state of debt liquidation, pending interest and conventional penalties that the Condominium By-Laws (Regulations) stipulate, if signed by the administrator and the president of the Vigilance Committee or his substitute, and accompanied by the corresponding outstanding (accounts receivable) receipts, as well as a certified copy by a Notary Public (fedatario public), the related Assembly act or Condominium By-Laws whatever the case, in which the fees charged to the condominium owners have been determined. This action can only be taken when at least three outstanding pending receipts exist.

The Condominium By-Laws (Regulations) can establish when any condominium owner is in default, the administrator distributes the amount of the debt and that which continues to be outstanding, among the remaining condominium owners, in proportion to their respective undivided (group), so that the needed resources for the expenses of the condominium are covered. When said debts are recovered, the administrator will reimburse those affected by said charge, the amounts that they have contributed, plus interest in proportion to the part that is owed to them.




Article 49 – The condominium owner who repeatedly does not comply with his obligations or repeatedly commits prohibited acts or omissions prohibited by this Law, besides being responsible for damages and harm caused to others, can be sued for the rescission of his contract or be obligated to sell his rights at public auction, respecting the rights to be informed, under the terms of the By-Laws (Regulations). The exercise of these actions will be resolved in the Assembly of condominium owners when a minimum of 75% of the value of the condominium is present.

If someone commits the acts prohibited in the previous paragraph, if he is an occupant and not a property owner, the administrator will demand that the apartment, living space, house, lot or locale be vacated, with the prior consent of the condominium owner. If he is in opposition to this, (the administrator) will proceed against both under the terms of this article.

Article 50 – When a property transfer contract is entered into in relation to a unit of private (exclusive) property, the seller will deliver to the buyer among others written proof of no debt for the payment of maintenance and administration fees and reserve (account), such as additional (extraordinary) fees as the case may be, issued by the administrator of the condominium. The purchaser of any unit of private (exclusive) property sets himself up as the bound obligee for the payment of the existing debts related to the same, except in the case of the administrator of the condominium having issued and delivered the proof of no debt previously outstanding.

Article 51 – The condominium owners will pay the local and federal fees to which they are obligated, as much as for what they do to their private (exclusive) property as the proportional part that belongs to them of the property and common areas.


CHAPTER IX

TAXES

Article 52.- The taxes of the condominium are divisible among the different units of private (exclusive) property that comprise it.

Each of the condominium owners will be responsible for only the taxes that correspond to his unit of private (exclusive) property and proportionally with respect to the common property. Any clause permitting pooling or solidarity of the owners of the common property, to respond to a tax will be void.

Article 53 - The credits that are originated by the obligations contained in the Condominium Act (Regime), those transferring dominion, by the By-Laws (Regulations), this Law and other applicable legal dispositions, enjoy real guarantee on the apartments, dwellings, houses or locales, even though they are transferred to third parties.

The inscription of this tax in the public register of property, gives the right to any interested party to obtain from the administrator or any creditor a liquidation of the outstanding debts; the liquidation from the administrator will take legal effect only if signed by the president of the Vigilance Committee or whoever substitutes for him.

Article 54 – Controversies that arise because of the interpretation of this Law, the Condominium Act (Regime), the transference of dominion, the By-Laws (Regulations) as well as any other applicable legal dispositions, will be submitted for arbitration, if the By-Laws prevent it and failing that, to the common law (civil) tribunals.


CHAPTER X

CONDOMINIUMS DESIGNATED FOR SOCIAL (PUBLIC) INTEREST HOUSING

Article 55 – The Condominium Act (Regime) declares by public order and social (public) interest, all or the majority of the dwelling is destined for social (public) interest.

Article 56 – The government of the state and the municipalities can adopt administrative, technical and financial measures that facilitate and stimulate the construction of condominiums for low income families.

Article 57 – No person can acquire more than one apartment, living space, house or local in the condominiums financed or constructed by public institutions, except if they are occupied by members of the same family.

Article 58 – In the event that the income laws of the municipalities establish it thus, the parts of the contracts for the acquisition of apartments, dwellings, houses or locales in the condominiums designated for social (public) housing, they will be exempt from the payment of taxes on the transference of dominion, provided that the nominal value referred to in Article 9 section VI of this Law, does not exceed the amount for such purpose that is fixed in the applicable income law.

Article 59 – In all cases, the transfer of ownership of apartments, dwellings, houses, or locales in condominiums referred to in this chapter are ruled by the following rules:

I. The right to such is exclusively established in first place, in favor of the renter who is current in compliance with his obligations and that has continuously occupied the apartment, living space, house or locale and, in second place, in favor of the public organizations that had financed or constructed the condominium.

II. The notification of property transfer to the renter, or in such case, to public organizations, will be done by the administrator of the property, Notary Public, or judicially, expressing the offering Price and the other terms of the operation so that within the next ten working days they can express if they will use said right; and

III. If the apartment, living space, house or locale is transferred in violation of that decreed in the previous sections, the renter or public organizations can subrogate the rights of the buyer, with the same conditions stipulated in the real estate contract, whenever the right of retraction is used, with expression of the price, within the following fifteen days of having knowledge of the property transfer. The Notaries or those who act in their place will refrain from authorizing a real estate contract if they are not assured that the seller has respected the said right. In the case of the notification having been made by the administrator of the condominium, he shall prove before the Notary or authorized functionary in order to testify in an irrefutable form, the day and time that the notification was made to those mentioned in the previous section.


CHAPTER XI

THE DESTRUCTION, RUIN AND RECONSTRUCTION OF THE CONDOMINIUM

Article 60 – If the condominium is totally destroyed, or a portion that represents at least three quarters of its value, according to an experts report rendered by the responsible authorities or credit institution, a special majority of condominium owners that represent at least 51% of the value of the condominium, can agree to the reconstruction or the division of land and common property that is left, or in the case of sale, arranged according to legal dispositions.

If the destruction does not meet the seriousness indicated, the accords referred to in the previous paragraph will be made by a special majority of condominium owners that represent at least 75% of the value of the condominium.

In the cases referred to in the previous paragraphs, if the agreement is for reconstruction, the condominium owners in the minority will be obligated to contribute to it in the proportion belonging to them or transfer their rights. The transfer can take place immediately in favor of the majority if those in the minority agree, but it will be compulsory after six months, at the appraised price done by a registered land agent or credit institution, if those in the minority have not had it done during the said time period.

Article 61 – In the case of ruin or notable aging of the condominium, a special majority of 51% of the value of the condominium owners can resolve, with prior judgment from the responsible authorities, the reconstruction or demolition and division of the common property, or in the case of sale, by first following the dispositions in the previous Article.

Article 62 – In all cases when the decision is in favor of the reconstruction of the building, each condominium owner will be obligated for the cost of repairs to his unit of private (exclusive) property and all will be obligated to pay for repairs to the common areas, in the proportion belonging to the in accordance to the value established in the Condominium Act (Regime).

However if the unit of private (exclusive) property has been totally destroyed, the Condominium Assembly can make a decision regarding the partial termination of the Regime, if the nature of the condominium and the applicable regulations permits it, in which case the condominium owner shall be compensated for the termination of his co-ownership rights.

Article 63 – The voluntary termination of the Condominium Act (Regime) will require a minimum of 75% of the value of the condominium, except when the Condominium Act (Regime) provides for a higher percentage.

If termination of the Condominium Act (Regime) in conformity with the dispositions of this Chapter is opted for, a decision shall be made as well about the division of the common property or its sale.


CHAPTER XII

PRE-SALES

Article 64.- Before the constitution of the Condominium Act (Regime), referred to in Article 5 of this Law, the interested property owners will have to obtain a report in their favor issued by in this case the authorized municipal authorities, in the sense of the general project being found within the proposals or established systems, as well as the proposals of public services; understanding that this declaration does not fulfill the obligations referred to in Article 9, among which the granting of construction licenses will be planned even though this condominium and others, form part of a whole or urban residential unit.

Article 65 – A publicity campaign for the sale of unconstructed condominium dwellings, apartments, houses or locales cannot be carried out without previously satisfying the following requirements:

I. That the owner of the property on which the erection of a condominium (property) is planned makes a notarized declaration of his intention of designating the property for this specific use, which (declaration) will be inscribed in the Public Register of Property.

II. That an irrevocable trust contract be made with a national credit institution regarding said property, which purpose will be the fiduciary guarantee before third parties of the completion of the Project;

III. That insurance sufficient to cover the possible damages and harm that can be caused to third parties in the event of the non-completion of the project be granted to the satisfaction of the corresponding Municipal Treasurer’s Office; and

IV. That the written permit issued by the authorized municipal department be obtained.







CHAPTER XIII

SANCTIONS AND METHODS OF DEFENSE

Article 66 – Violations of that established by this Law and other dispositions that emanate from it will be punished by the Secretary of Public Works or by the corresponding city government within the confines of its province.

Article 67 – The violations of the dispositions of this Law will be punished with fines that will be applied in accordance with the following criteria:

I. For offenses that affect the tranquility or the comfort of the condominium life a fine equal to one to one hundred days general minimum wage in effect in the state capital will be levied;

II. For offenses that affect the physical state of the property, without this meaning putting the security of the other condominium owners (residents) at risk, that impedes or makes obstacles to the suitable use of the installations and common areas, or that affects the function of the condominium, a fine equal to one to two hundred days general minimum wage in effect in the state capital will be levied;

III. For those offenses that provoke patrimonial damage or put the security of the property or of persons at risk, a fine equal to one to two hundred days of general minimum wage in effect in the state capital will be levied; and

IV. For the violation of the other dispositions of this Law, a fine of one to four hundred days of salary;

In the case of reoffending, a fine of up to double the original will be levied.

Article 68 – The penalties established in this Law apply independently of those imposed for violation of other dispositions.

Article 69 – For the imposition of penalties and to issue their determinations, the authorities, will conform to that established by Judicial Law and the Administrative Procedures of the state of Nayarit.

Article 70 – Those affected can interpose an administrative appeal before the proper authority or appeal said actions before the Tribunal of Administrative Justice in conformity with dispositions of the Law of Justice and Administrative Procedures of the state of Nayarit in response to the resolutions and administrative acts that the authorities dictate and execute in the application of this ordinance.


INTERIM ARTICLES

ARTICLE FIRST – This Law will become effective the day following its publication in the Official Periodical, Organization of the Government of the State of Nayarit.

ARTICLE SECOND – The Law Regulating Condominium Real Estate Property for the State of Nayarit, contained in Decree Number 6900, published in the Official Periodical, Organization of the Government of the State of Nayarit, on the 27th of April, 1985, is repealed.

ARTICLE THIRD – A period of six months beginning from this date is given to the condominiums established prior to the effective date of this Law to conform to the law.

GIVEN in the Sala de Sesiones "Lic. Benito Juárez" of the Honorable Congreso del Estado Libre y Soberano de Nayarit, in Tepic, its Capital, on the fourteenth of May of two thousand and two.


Dip. Presidente,
ESIDERIO CARRILLO CHÁVEZ.-

Dip. Secretario,
MARGARITA BASTO PAREDES.-

Dip. Secretario,
CARLOS ENRIQUE GARCÍA CAMBERO.-

And in compliance to the disposition in section II of Article 69 of the State Constitution (Constitución Política del Estado), and for its due observance, this Decree is passed, the Residencia del Poder Ejecutivo de Nayarit, in Tepic its Capital, on the twenty-third day of the month of May of the year two thousand two.

El Secretario General de Gobierno
Lic. Adán Meza Barajas.-

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