On April 13, 2022, Law No. 21.442 was published in the Official Gazette, which approves the new Real Estate Co-ownership Law. This Law, which revokes the current Real Estate Co-ownership Law (Law No. 19.537), establishes a series of changes, among which the following are worth mentioning:
– New definition of the concept of Real Estate Co-ownership, as well as of the condominium typologies (A and B).
– Regardless of the type of condominium, access to the condominium must be direct to a national public property, eliminating the option of access by means of traffic easements.
– New condominiums must respect the road network established by the Territorial Planning Instrument (IPT).
– The provisions of the co-ownership regulations that do not comply with both the legal norms and the regulations of the Co-ownership Law will be null and void.
– The minimum quorums for the constitution of ordinary and extraordinary and reinforced majority meetings, as well as for the adoption of resolutions, are modified.
– A National Registry of Condominium Administrators is created, in which all individuals or legal entities that carry out activities as condominium administrators, whether free of charge or onerous, must be registered.
– The Minvu will be in charge of an Executive Secretariat of Condominiums, which will be in charge of issuing instructions regarding the application of the Law, among other functions.
– The possibility is incorporated in the Condominium’s co-ownership regulations to agree on the participation in virtual assemblies, subject to certain requirements.
– Expansion of matters that may be agreed upon by means of written consultations.
– With respect to the assignments of exclusive use and enjoyment that are not included in the co-ownership regulations and are related to common land and property, the obligation of their registration in the registry of mortgages and liens of the competent Real Estate Registry is stipulated.
– Establishment of a limit of 160 housing units in social housing condominiums (with exceptions).
– It is stipulated that the co-ownership regulations may not prohibit the keeping of pets and companion animals, without prejudice to the power to restrict the use of the common property of the respective condominium by such animals.
– At the time of the purchase-sale or the subscription of the promise of the respective unit, the first selling owner must deliver a material and also a digital copy of the first co-ownership regulations.
– The co-ownership regulations, if applicable, must ensure, by means of the respective rules of coexistence and penalties for noncompliance, that the use of housing units as temporary lodging, tourist lodging, apart-hotel or other similar, does not produce nuisances that affect the quality of life of the permanent inhabitants of the condominium or affect their use of the common goods and services.
– In case of default in the payment of the condominium’s economic obligations, only one service will be cut off. This will be extended not only to electricity supply cut-off, but also to heating and telecommunications.
– Parking spaces for persons with disabilities may only be assigned in use and enjoyment to co-owners, occupants or lessees of the condominium units that so require, when these correspond to persons with disabilities, especially those with reduced mobility who have the respective accreditation of such condition as indicated in Law No. 20.422. Notwithstanding the foregoing, as long as the parking spaces corresponding to the mandatory minimum quota for persons with disabilities are not required by the aforementioned persons, they may be temporarily assigned in use and enjoyment to other co-owners, a concession that will terminate by the sole authority of the law, when they are assigned to persons with disabilities.
– In the case of condominiums with more than 200 units for housing purposes, subadministrations not exceeding such amount shall be constituted, corresponding to the collective buildings or sectors into which the condominium may be divided, pursuant to the provisions of letter D of Article 1° and Article 38 of the Law. Notwithstanding the foregoing, if the condominium consists only of a collective building of more than 200 units for housing purposes, the constitution of subadministrations shall not be required, but the existence of certain differentiated common properties that facilitate the circulation of persons and the daily administration of the condominium, such as accesses to the public space, receptions or concierge offices and/or elevators that serve certain floors or units, must be contemplated. For such purposes, the Regulations of the Law shall regulate the minimum standards.
Finally, it is noted for the record that (i) Law No. 21.442 became effective on the date of its publication in the Official Gazette, April 13, 2022, except for certain exceptions (contracting of collective fire insurance); and (ii) the regulations of the Law and the National Registry of Condominium Administrators must be issued within a period of 12 months from April 13, 2022 and must be submitted to public consultation for a period of no less than 30 days.