Selling and Buying in Condominiums

Selling and buying in condominiums involves many important factors and it is essential to know how the regulations work, to understand how to act in different situations and what are the ruling aspects to follow if you intend to put a property on the market either for selling, rent or buy.

Here is everything you need to know about the selling and buying process in condominium properties:

Important aspects when selling or buying in Condominiums

The condominium property has a dual nature. It contains the individual and exclusive rights of the property within its own space, while it has a co-ownership over the communal amenities.

There are also, different types of condos, and certain factors may change accordingly. It is not the same to own a property in a vertical condominium than in a horizontal one. Or a land condominium and one in which the properties are built and designed by the developer.

Living in condominium – Part 1

Condominium Regulations

The main law is the Ley Reguladora de Propiedad en Condominio (Ley 7933). It establishes in general, the basic rules of condominium coexistence, the owners’ rights and obligations, the administrative functions and other important information that the owners must know.

On the other hand, the condominium developer creates the internal regulations as a requirement for its constitution. For a condominium to have this status, it must be registered.

In addition to these, there are other sources that seek to protect the tranquility and coexistence inside the condominium, for example:

1. Condominium Assembly: These assemblies take place to propose, discuss, and resolve issues of common interest. Several assembly agreements will depend on the votes of each neighbor.

2. Administration: To watch over the correct implementation of the laws, the agreements of the Assembly, and the protection of the common goods, there is the administration. There are two types of administrations, and it is advisable to know in advance which model applies in the condo you intend to invest.

Administration: This may be a natural or legal person chosen by the Assembly.
Board: It is formed by legal representatives elected by the Assembly.

In addition to the general regulations, there are:

Internal Bylaws: These include rules approved by the Assembly that focus on regulating the healthy coexistence and the correct use of the amenities.
Construction regulations: This may be included in the general regulations if you are investing in a farm/ lot condominium, in other cases it is a separate regulation approved by the Assembly. These are ruled by the Regulatory Plan of the corresponding municipality and everything related to the construction, remodeling, and maintenance of the properties.

Selling and Buying to Rent in Condominiums

On many occasions, people seek the option of renting condominium property. For these cases, the bylaws have their specific rules for renting, which must be known by the future property owner.

When renting in a condominium, both the property owner and the tenant must follow the rules of the bylaws. It must be made sure that the tenant follows the regulations. In case the tenant does not follow them, the owner may get penalized if the tenant’s actions do not change after being called to attention.

Additionally, amenity rights transfer from the landlord to the tenant when a rental agreement is signed. Therefore, the property owner loses the right to use the amenities.

Apart from these conditions, condominium rentals follow the Ley de Arrendamientos Urbanos y Suburbanos.

Airbnb renting in condominiums

A concept that has become very popular in recent years is the Airbnb rental; this business model allows to rent a space at a low cost and for a short period of time.

Many people looking to buy condos want to invest in this short-term rental model. It is necessary to be aware of the legal regulations around this particular subject. As of today, to rent a condominium property with Airbnb, it must be under the category of “tourist destination“.

The general “destination” or nature of the property can be found in the internal regulations of the condominium, which can be changed by Assembly votes. By defining the “destination”, the owners can submit the condominium to the Régimen de Propiedad en Condominio and rent through Airbnb.

Thus, before buying or selling a condominium property, it is necessary to know the nature stipulated, and the probabilities of change.

La Ley marco para la regularización del hospedaje no tradicional indicates the specifications that must be followed in this regard.

When investing in condominiums, it is essential to know their regulations and the laws. To learn more about condominium living do not hesitate to visit our related articles, to learn more about the benefits of condominium living and how they are a great opportunity for family living.

If you would like more information on the subject of selling or buying in condominiums, do not hesitate to consult with our specialized advisors.

Contact our Nativu Advisors