On June 28th, the amendment to article 27 of the Condominium Property Regulatory Law (7,933) was published in the “Diario Oficial La Gaceta”. Among the most important aspects are:

– Voting for Agreements Approvals:

1 – Unanimous Agreements:

a) Modify the general destination of the condominium.
b) Resign to the condominium property regime.
c) Encumber or dispose of the condominium in its entirety.

2- Agreements by Two Third Parties:

d) Vary the special destination of a subsidiary farm.
e) Build new floors or basements, excavate, or authorize any of the owners to carry out these tasks.
f) Acquire new common goods, change the destination of the existing ones, or arrange the way in which they can be used, except if it implies the reduction or elimination of green areas or parks, which will require unanimous agreement.
g) Authorize the leasing of common things.
h) Approve the partial or total reconstruction of the condominium.
i) Vary the proportional area of the subsidiaries’ farms, in accordance with the total condominium area or the common area.
j) Vary the articles of incorporation or the condominium and administration regulations clauses.

3- Other Agreements:

Any other agreement or determination will be approved by the owners of the condominium who represent the majority value of the condominium.

– Main Amends to Article 27 in force:
The following corresponds to the main modifications made to Article 27:

a) To modify the proportional area of the subsidiaries, and the clauses contained in the articles of incorporation or the condominium and administration regulations, only 2/3 of the votes will be required and not 100% as is currently established.

b) When common property acquisition implies the reduction or elimination of green areas or parks there will be required unanimous agreement. This was not regulated.

– Our comments
In Costa Rica, the development of real estate projects executed under the regime of Condominium Property, either residential, commercial, or mixed, is very common. Daily, we can appreciate the rising of new projects which assure us that the sector is constantly growing.

We consider that this amendment, as simple as it may seem, will allow the Condominiums constituted years ago, to adapt by regulation, in an easier way to today’s needs and requirements, and avoid falling into an obsolete and ungovernable system.

In regulatory matters, we consider that percentage reductions of votes required for modifications will greatly help the statutes to always be in force according to the present needs since it will be easier to modify them for the purposes of adapting them always in favor of the common good.

The amendment is currently in force, any Homeowners Assembly held after June 28th will be adjusted to it. At ERP Lawyers we have a multidisciplinary team that can advise you on any of your needs. Contact us at email: info@erplawyers.com