Condominium Life in Costa Rica
The number of square meters built as condominiums grew almost seven times in the last decade, according to data from the Costa Rican Chamber of Construction, since the total area used for housing in 2000, 13% were condominiums and the rest, single-family options. Meanwhile, already for 2009, the condominiums represented 27% of the total home construction, and it continues to increase.
Although the first apartments in the Central Valley date from 1965 (the oldest date that appears in the databases of the company Immoinfo). Both Inmoinfo and Cake reported an increase in height, size and frequency of construction of towers between 2012 and 2014, and the trend continues.
This data shows an increase on a new lifestyle for home owners where the space of a traditional home which can only be access now away from the central valley or at extremely high prices if they are located within the central valley. This has changed now for a smaller more convenient apartments or condos within the metropolitan area that contain common areas for entertainment but smaller habitable homes.
Constitution and operation of condominiums
The constitution and operation of condominiums is a challenge in Costa Rica. It entails not only the approval of the respective plans before all the institutions involved (INVU, CFIA, MOPT, Fire department and Municipalities, among others) which is usually quite tedious and long, but also the legal constitution of the Condominium in the Public Registry, which includes the drafting and registration of the respective regulation or bylaw on a public notary book.
In particular, the registration of the regulation entails not only adapting the same to the needs of the specific project and its development strategy (either for its use: commercial, residential, offices, parking lots, or for the type of condominium), but also by the limitations contained in the Condominium Property Law and its regulations, by the registration criteria of the National Registry (which are not necessarily always the most accurate ), and finally the existence of little jurisprudence in condo matters that can help the interpretation and clarification of certain norms of the Law.
The operation of condominiums rests on three main bodies that care for the condominium administration, maintenance and treasury.
- The HOA (Homeowners Assembly): Which is the principal and most important of all, it is constituted by all the owners of the properties, and in charged of selecting The Board Members.
- The Board of Administration: This is selected by the assembly and are in charged of administration and execution of the condo’s bylaws, they collect the monthly fees and create a fund for repairments or other spends the condo might need. They are also in charged of selecting the administration.
- The Administration: This organization can be internal or external from the condo, they are constituted by the board and oversee the maintenance of the condo from individual units to common areas that are shared by the condominium owners.
The Condominium Property Law
The Condominium Property Law was born at a time when real estate developments were simpler, and often a simple conversion of a building with a few residential apartments was limited to one. condominium. However, the reality we live in today is that the market is much more demanding and the needs of people and lives have changed, leading developers to innovate, for example, through the creation of condominiums that are practically mini-cities in which people can live, work, study and entertain all in one place practically without having to leave the condominium. This has resulted in lawyers (through the interpretation of standards, creativity and innovation) fill a series of gaps left by the Law for more complex developments.
One of these examples refers to the lack of regulation in the Law regarding the way to distribute the payment of the fees for mixed-use condominiums or to be developed in stages, even though the needs and costs of a commercial subsidiary can be quite different from those of a residential subsidiary lot by its nature. The same happens in the case of master condominiums or plots in which there may be subsidiary lots for future developments, which do not require the same services as subsidiary lots already developed, but which must pay the same condominium fee paid by the lots that are already developed.
As indicated above, another of the challenges in the registration of condominiums is the application of some criteria for registration in the National Registry. As an example, the National Registry does not allow the inclusion in the regulations of restrictions or prohibitions on the use of common areas to those condominium owners who are delinquent in the payment of condominium fees. In the absence of such a possibility, there is no other option than to go to court to make the collection, which implies not only higher expenses for the condominium and time but in some cases implies that the rest of the condominium owners have to cover said condominium fees in order to be able to meet the expenses of the condominium.
In conclusion, it is important to determine what are the condominium bylaws, the taxation for these properties, the condominium fee and any other difficulties that homeowners face in this lifestyle, which is essential for a peacefully coexistence and for the enjoyment of your home. It is a very important to rely on an experienced real estate attorney, who could complete a proper due diligence process and deliver you with the best of this housing style.