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Frequently asked questions about condominium ownership
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Is a condominium a legal entity?
No. A condominium is a property that can be used independently by different owners, with indivisible common elements, all under a special ownership regime. However, for practical purposes, it has been granted certain rights and obligations, equating it to a legal entity when in reality it is not. A condominium, for example, can be a property owner and be registered with the Costa Rican Social Security Fund, registered with the Ministry of Finance, enter into private contracts, and have representatives.
Can common areas and assets be used only by certain owners and not by everyone?
Yes. The Condominium Property Regulatory Law states that common property belongs to all condominium owners, who will have rights to it proportional to the percentage of the area designated for their subsidiary property within the condominium. However, a distinction is made between common property for general use and restricted use, with the latter allowing only certain subsidiary properties to use specific common property, as stipulated in the condominium's deed of incorporation.
What happens if I don't pay my condominium fees or any other financial obligations to the condominium?
Article 20 of the Condominium Property Regulatory Law expressly establishes that, in this scenario, the subsidiary property will be subject to preferential and original collateral for failure to comply with these obligations. Failure to pay these obligations automatically constitutes a legal mortgage on the subsidiary property, with a certified public accountant's certification serving as the basis or executive title for initiating foreclosure proceedings.
What happens if I buy a subsidiary property that has financial obligations to the condominium?
Whether in a purchase or any type of transfer, both the purchaser and the former owner will be considered liable for payment, that is, jointly and severally liable for existing debts. In these cases, it is always advisable to request a certificate issued by the condominium administration, stating the status of the obligations regarding the subsidiary property.
What powers does a condominium administrator have?
To be responsible for all acts of administration and maintenance of the condominium and the execution of the agreements of the Condominium Owners' Assembly, and may be a natural person or a legal entity. The administrator will act as the condominium's representative, and their power of attorney will be a general power of attorney, which may vary according to the provisions of each Condominium and Administration Regulation, or at the discretion of the Condominium Owners' Assembly.
What decisions are made in a condominium?
Each Condominium and Administration Regulation will be responsible for establishing the rules regarding this matter. However, the Condominium Ownership Regulatory Law establishes the bases to be followed, with three types of votes in the Condominium Owners' Assembly: 1) Unanimous vote to: modify the general purpose of the condominium; vary the proportional area of the subsidiaries; renounce the condominium ownership regime; encumber or alienate the condominium in its entirety; and modify the clauses of the articles of incorporation or the Condominium and Administration Regulations. 2) A vote of two-thirds of the total value of the condominium to: modify the special purpose of a subsidiary property; build new floors or basements, excavate or authorize one of the owners to carry out these works; acquire new common property, modify the purpose of existing property, or in any way determine how it may be used; authorize the leasing of common property; and approve the partial or total reconstruction of the condominium. 3) A vote by a majority of the condominium's value for any other matter.
What value should be assigned to subsidiary farms from their establishment?
There is no express rule or regulation regarding this. Therefore, it is always up to each developer, at the time of establishing the condominium, to assign the percentage values and co-ownership coefficients they deem appropriate, at their discretion, for each subsidiary property.
What is the difference between “co-ownership coefficient” and “percentage value”?
The co-ownership coefficient is the index that establishes the percentage share of each of the owners of subsidiary properties in the common property of the condominium, while the percentage value is the percentage share that a condominium owner has in relation to the total value of the condominium or building. For more information, please contact us at ccartin@lexincorp.com.
