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Everything you need to know about buying and selling real estate in Mexico, Puerto Vallarta, and the Banderas Bay region

Homeowners Meetings & Maintenance Fees

How A Condo Meeting Should Be Conducted Even If This Information Bores You To Death

The General Homeowners Meetings

The homeowners meetings are the top authority for the running of the condo building.  Condo meetings are ordinary and extraordinary. There will be at least one ordinary meeting a year, held within the first 3 months of every year.

General meeting agenda:

  1. Reports from the administrator and the executive committee
  2. Election of the executive committee
  3. Election of the administrator
  4. Approval of the budget for the coming year

Notices for the ordinary meeting are legal if at the first meeting, there is at least 51% of the condo rights represented. If 51% are not present, a second meeting will be scheduled no sooner than 7 days or later than 14 days.  At this second meeting, the majority of the homeowners or their representatives who are present shall be declared a majority.

The general meeting will take place in the same city as the condo is in.  The notice for the meeting shall be issued at least 15 days prior.

Extraordinary Meeting:

Is held at any time when the following events need the homeowner’s attention:  Notice should be 20 days before the meeting.

The agenda can include:

  1. Modification of the condo bylaws
  2. Approval of any improvements
  3. To modify or dispose of the common areas
  4. To vote on the dissolution of the condo regime
  5. To approve the addition of new common areas
  6. To request a civil judge to make an owner sell his rights to the property
  7. To approve the rebuilding of the building if it has been damaged
  8. Other problems or questions that are of concern to the homeowners

 

An extraordinary meeting may take place with whatever number of homeowners in attendance.  However, for a proposal to be legal, 75 percent of the ownership must vote and approve it.

Besides the notices to the individual owners for both types of meetings, a copy should be posted in visible places within the condo. An owner can require that the administrator notify him by certified mail.

Notice must include the date, time and place of the meeting, the type of meeting and the agenda. Items OFF the agenda cannot be binding unless 100% of the homeowners are present to make the decision. This is a critical point to understand when voting on issues of importance.

Maintenance Fees

The homeowners shall pay maintenance fees. The condo dues and reserve fund are determined on the percentage of ownership of an individual unit to the whole condo regime.

Dues and the reserve fee are paid in advance.  If the condo expenses exceed the income, the homeowners are required to cover the expenses as an extraordinary maintenance fee.

In Case of Disagreement:

  1. For controversies among homeowners, they shall be subject to the executive committee’s judgment.
  2. The city secretary will judge conflicts within the condos in the city.
  3. The civil code and Jalisco code will be followed.
  4. Other conflicts, such as a dispute with a utility authority or a disputed charge for products or services, shall be decided by the city judicial legal system.

 

The administrator can take to court homeowners or their guests, who continue to fail to fulfill their obligations or follow the condo bylaws. The condo can ask the judge to force the homeowner to sell his condo ownership. This is a strong position that the owners in general can take to remove an owner who disturbs or destroys the right of enjoyable use by the majority of owners.

A tenant can be required to vacate a unit. The condo can sue the owner, if they oppose such an action.

Decisions made at legally constituted meetings are legal and binding to all the ownership, whether they are present or not.  This applies to third parties or unknown owners as well.

If you own or are considering buying a condo, ask about the condo laws and the condo regime rules and regulations, where you are considering a purchase.

In my experience after attending hundreds of condo meetings representing owners, I have learned that the people who are not prepared in these meetings are the ones who try to control it. They succeed too many times because no one is informed who can take control  and conduct a fair and shorter meeting.

 

 


This article is based upon Flex MLS reporting, legal opinions, current practices and my personal experiences in the Puerto Vallarta-Bahia de Banderas areas. I recommend that each potential buyer or seller of Mexican real estate conduct his own due diligence and review. If you have any other questions, contact me through my website.

Harriet Murray

harriet@casasandvillas.com

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