Condo law questions

[Danny W]

These questions refer to a condominium complex with no registered by laws:

1)I don't see anything in Condominium Law 5038 about having the financial books of a condominium certified or audited. How does an owner go about verifying the honesty of the books?

2) Is insurance required for a condo complex by law.

Fabio - We will eventually be retaining your Sosua office to deal with certain problems we are having with our condo, but we are trying to get a little more focused before we come to you. - D

[HOWMAR]

Originally Posted by Danny W

These questions refer to a condominium complex with no registered by laws:

1)I don't see anything in Condominium Law 5038 about having the financial books of a condominium certified or audited. How does an owner go about verifying the honesty of the books?

2) Is insurance required for a condo complex by law.

Fabio - We will eventually be retaining your Sosua office to deal with certain problems we are having with our condo, but we are trying to get a little more focused before we come to you. - D

Just wondering. Why would you buy a condo without first examining the Association By-Laws?

[Danny W]

Originally Posted by HOWMAR

Just wondering. Why would you buy a condo without first examining the Association By-Laws?

They don't exist, so there's nothing to examine. I bought the condo beacause it suited my needs perfectly. We are now going about reforming the management. - D

[Ken]

I've been studying condo law at Fabio's knee, but am only part way through the course Consequently, Fabio's word will be gospel, not mine.

But it is my understanding that the law does not require insurance, but if group insurance on the risks threatening the building or the unit owners as a whole is in the bylaws or decided on by the condominium association, then all owners must pay their share (Article 11). It is also my belief that the condominium association could have an insurance program if this is agreed to by a simple majority of the owners attending a legally constituted assembly (a quorum is a simple majority of all the owners; a simple majority of those participating in the assembly could approve an insurance program.)

Based on your answer to Howmar, it seems that your next step is to form a condominium association with bylaws. Fabio's office has had much experience with that. I'd suggest that you start working with them sooner rather than later, since this may save you time and missteps.

[Danny W]

Originally Posted by Ken

I've been studying condo law at Fabio's knee, but am only part way through the course Consequently, Fabio's word will be gospel, not mine.

But it is my understanding that the law does not require insurance, but if group insurance on the risks threatening the building or the unit owners as a whole is in the bylaws or decided on by the condominium association, then all owners must pay their share (Article 11). It is also my belief that the condominium association could have an insurance program if this is agreed to by a simple majority of the owners attending a legally constituted assembly (a quorum is a simple majority of all the owners; a simple majority of those participating in the assembly could approve an insurance program.)

Based on your answer to Howmar, it seems that your next step is to form a condominium association with bylaws. Fabio's office has had much experience with that. I'd suggest that you start working with them sooner rather than later, since this may save you time and missteps.

Thanks, Ken - Any idea about the financial statement and books? Do they need to be blessed by an auditor or certified in any way? I see nothing in 5038 re: the statements. - D

[Ken]

Originally Posted by Danny W

Thanks, Ken - Any idea about the financial statement and books? Do they need to be blessed by an auditor or certified in any way? I see nothing in 5038 re: the statements. - D

I think that this is also something that should be in the bylaws or approved by the condo association. The condo I live in, for example, has had an association and bylaws for 20 years, but no requirement for an annual or periodic audit. There has been an audit when administrators changed, but otherwise, no. This is something we will consider this year when working on a revision of the rules.

[HOWMAR]

Originally Posted by Danny W

They don't exist, so there's nothing to examine. I bought the condo beacause it suited my needs perfectly. We are now going about reforming the management. - D

Something just doesn't seem to jive. It seems that by-laws are required per Article 21 for the condo to be registered at all. Was the project ever registered? If not, the Condo Law may not apply.

Article 21.- No building shall be registered under this law unless the proprietors register the bylaws, which shall contain at least the following:

1. A specification of each one of the exclusive ownership parts into which the building is divided, indicating the number or letter or any other designation used to identify them.

2. The number of votes that the owner of each part of the building subjected to exclusive ownership shall be entitled to in the meetings of the condominium association.

3. The percentage that every unit owner should contribute to the common fees and expenses;

4. The bases for the manager's remuneration;

5. The use to be given to the various parts of the building.

[Danny W]

Originally Posted by HOWMAR

Something just doesn't seem to jive. It seems that by-laws are required per Article 21 for the condo to be registered at all. Was the project ever registered? If not, the Condo Law may not apply.

Interesting. Perhaps the bylaws do exist or perhaps not. My contract refers to the complex as a commercial company registered in Sosua. I do have title, and the contract also calls for anything not covered in the contract to be bound to Dominican law.

Do you think the Notary (Guido Perdomo) has an obligation to me to provide that information?

[Ken]

Again, Fabio will have the last word, but if where you live is truly a condominium, then there should be a Condominium Declaration (DECLARACION DE CONDOMINIO) that describes what is included in the way of exclusive (the apartments) properties and the common areas. Also in the Condominium Declaration you should find an Article (Ninth in our Condominium Declarataion) that says something like "Herby is given in record that the party drawing up this document ha drafted a set of rules of joint-ownership and the Condominium's administration, relating to the Condominium by way of the document constituting itself, which will govern the relaltionship of those that could result as being joint-owners in the future, and it is part of this document. Therefore, any owner or third paraty that comes into play or deals with any owner of this Condominiun is subject to the legal requirements of the referred set of Rules."

To be registered under the Condominium Law, there must be bylaws that, at a mininimum, contain (Article 21):

1. A list of each of the exclusive properties (apartments)
2. The number of votes each owner has
3. The percentage that each unit must contribute to common fees and expenses
4. The bases for the manager's remuneration
5. The use to be given to the various parts of the building

If there is a Condominium Declaration/Bylaws/Condominium Rules, I think you have every right to see them and to have a copy since you required to abide by them.

[Danny W]

Guido Perdomo informs me that there are bylaws for my complex that apparently almost no one has seen. To be continued... - D