Best practices for Condominium assemblies in Mexico
The General Assembly of Condominium Owners, as the maximum body of a Condominium, is in charge of overseeing that the Condominium Owners strictly comply with the obligations established in the Condominium Property Law, as well as in the Condominium Regulations.
That is why the General Assembly of Owners makes its decisions through Ordinary or Extraordinary Assemblies, in which taken agreements must be fulfilled by all Condominium Owners.
In the Ordinary and Extraordinary Assemblies, the following points can be discussed.
- Appoint and remove the Administrator or Administrators.
- Appointment of the Vigilance Committee.
- Establishment of maintenance fees for the Condominium, as well as moratorium fees for the Owners in case of non-payment of maintenance and administration fees, and for the reserve fund.
- Examine and, where appropriate, approve the statements of account submitted by the Administrator for its consideration, as well as the annual activity report submitted by the Vigilance Committee.
- Discuss and, where appropriate, approve the spending budget for the following year, where the fees to be earned by the administrator and other workers will be established.
- Adopt the appropriate measures on matters of common interest that are not included within the functions conferred on the Administrator.
On another hand, for the discussion and approval of the following points, it is necessary to hold an Extraordinary Assembly:
- Modification of Condominium Constitutive Deed, and approval or reform of the Condominium Regulations. These must be registered in the Property Public Registry, in the cases and conditions that are necessary.
- In the case of destruction, ruin, old age, expropriation or affectation of the Condominium in accordance with the applicable legal provisions, regarding the reconstruction, demolition, division and alienation of the assets that constitute the property regime in the Condominium.
To carry out the Assemblies of the Condominium, the following points must be followed according to the Condominium Property Law.
1.- Summon to the Assembly.
The summons for the holding of Assemblies are the means by which the Owners are informed of the holding of an Ordinary or Extraordinary Assembly. The following points must be indicated in the summon.
1.1. Indicate the type of Assembly to be held (Ordinary or Extraordinary Assembly).
1.2. Place where the Assembly will be held.
1.3. Date and time, it will be held.
1.4. The Agenda, that is, the points that will be considered in the Assembly.
1.5. Who summons to the Assembly.
It is important that the summon is delivered to each Condo Owner or sent by mail with the proper proof of dispatch and receipt.
Likewise, to start the Assembly, it is necessary that the following percentages of Homeowners are present.
- On First Call, the Assembly may be held, as long as 75% of the condominium proindiviso is present.
- In the Second Call, the quorum will be at least 51% of the condominium proindiviso.
- In the event of a third or subsequent call, the assembly will be declared legally installed with the Homeowners who attend, and the resolutions will be made by a majority of those present.
2.- Celebration of the Assembly.
Once the Assembly is open, the following steps must be followed:
2.1. Request the present owners to register on an attendance list, because the present quorum must be considered to verify that the holding of the Assembly is legal, in accordance with the Condominium Property Law.
2.2. Confirmed the presence of the Owners, it is pertinent to designate the persons that will take control of the Assembly. Therefore, the following positions for the Assembly might be appointed, among the attending Owners.
- A president of the Assembly.
- A secretary of the Assembly.
- Two tellers of the Assembly, since they must count the votes in the adopted agreements of the General Assembly.
2.3. Continue with the provisions of the Assembly Agenda; discuss and approve the points indicated therein.
In an Assembly it is possible to determine the following points.
- Condominium budget.
- Maintenance fees to be paid by the Owners.
- General points.
- Penalties for Condo Owners violations.
Regarding condo fees, it is important to specify the percentage that will be borne by each owner of the Condominium Unit and the system through which the payment will be disclosed to the condominium owners, the account to which the corresponding deposits will be made, and the payment times, even when this is understood by the condominium owners already. It is important, so that a delinquent condominium owner does not argue in court that they did not know how much they had to pay, or when or how to make the payments.
In order to impose a penalty against an infringing Condo Owner in an Assembly, the Condominium Administrator or the Vigilance Committee must inform the General Assembly of Condominium Owners of the conditions that have led them to propose the penalty against the infringing Condo owner. Such, considering the articles that the offending Condo owner failed to comply with.
The profs of the infraction should be presented, and the infringing Condo Owner should be allowed to speak and present any argument or prof on his behalf.
If a penalty is imposed, it should be based on the article of the regulation or the applicable law and it should explain why it was imposed. The penalty must be approved, in its case, by at least 50% of the Condo owners. If you want to learn more on this topic, please consult our article: What are the requirements that the condominiums must follow to impose penalties?
3.- Assembly Certification.
Once the Assembly is concluded, it must be registered in the Condominium Minutes Book and certified by a Public Notary, which will allow said instrument to have official validity.
Our attorneys can advise you to correctly carry out an Assembly, fully following the provisions of the Condominium Property Law and related regulations. Consult your case with us, Schedule a Free Call with Us.