The Legislative Plenary approved in second debate Bill 22.086 to reform Article 27 of the “Law Regulating Condominium Property” (7.933), among the most important aspects are :

– Voting for Approval of Agreements:

1. Unanimous Agreements:

a) To modify the general destination of the condominium.
b) To waive the condominium property regime.
c) To encumber or dispose of the condominium in its entirety.

2. Agreements by Two Third Parties:

a) To vary the special destination of a subsidiary property.
b) To build new floors or basements, to excavate or authorize any of the owners to carry out these works.
c) To acquire new common property, to vary the use of existing property, or to dispose of in any way the way in which it may be used, except if it implies the reduction or elimination of green areas or parks, which shall require unanimous agreement.
d) To authorize the leasing of common property.
e) Approve the partial or total reconstruction of the condominium.
f) Vary the proportional area of the subsidiaries, in relation to the total area of the condominium or the area of the common things.
g) Vary the clauses of the articles of incorporation or of the condominium and administration regulations.

3. Other Agreements:

Any other agreement or determination shall be approved by the votes of the owners representing the majority of the value of the condominium.

– Main Changes to the current Article 27:
As main changes we list the following:

a) To vary the proportional area of the subsidiaries, and the clauses of the articles of incorporation or of the condominium and administration regulations, only 2/3 of the votes will now be required and not 100% as currently established.
b) When common property is acquired that involves the reduction or elimination of green areas or parks, which will require unanimous agreement. In the current Law this is not regulated.

– Our Comments

In Costa Rica the development of real estate projects executed under the figure of Condominium Property, both residential, commercial, and mixed, is extremely common. Every day we can see the rise of new projects which gives us an indication that the sector is maintained or is growing.

The current Law has contributed in a certain way that the Condominiums constituted many years ago, have not been able to adapt to the current needs, and are becoming obsolete which also affects the value of the property. Nowadays it is extremely difficult to reform a Condominium because it requires the unanimity of the votes, creating a very complicated barrier to pass.

From our point of view this can certainly be somewhat unfair, since although a reform may mean an improvement that will positively impact all the owners, with only one who opposes it, the opportunity of the benefit is lost, affecting the common good.

In regulatory matters, we also consider that the reduction in the percentage of votes required for their modification will greatly help the bylaws to be always in force according to the circumstances of the moment since it will be easier to modify them for the purpose of adapting them always in favor of the common good.

It is a reform that looks simple, but we definitely consider that it will have a positive impact.

Currently, the bill must be sent to the Executive Branch for signature by the President of the Republic, so that it can be published as a Law of the Republic. According to the environment created around it, we do not believe that there is any possibility of it being vetoed. In ERP Lawyers we have a multidisciplinary team that can advise you on any of your needs. Contact us at: info@erplawyers.com