Karina Castillo, Associate
Under the current State of National Emergency, by Executive Decree No. 151, the Panamanian Government has established regulations within the existing legislation on horizontal property under Law 31 of the 18th of June, 2010.
Besides existing procedures, this Decree has established the following:
- It has provided specific definitions of the concepts of “Components”, “Original Horizontal Property” and “Derived Horizontal Property”.
- It specifically defined the rights derived from incorporation in the Condominium Property System.
- It extended the meaning of organizing an entity under the Horizontal Property Law.
- It stipulated that it only requires to obtain a certificate of payment of the respective fee issued by the Directorate of Horizontal Property of the Ministerio de Vivienda y Ordenamiento Territotial (MIVIOT) in order to include improvements and to raise the marginal provisions established at time the condominium was established the horizontal property legislation.
- It stipulated that a residential complex with private streets and managed by non-profit organizations may incorporate within the Horizontal Property legislation.
- It extends and clarifies everything concerning the quotas for the commonality’s expenses.
- It provided very precisely which reserves may be established by the Promoter and it also enables the Promoter to render services under the proper permits.
- It stipulates that the co-owners or their respective attorneys may participate in meetings through electronic means or any other technological means.
- It has precisely established the percentages of participation and the votes required for decision-making in the assembly of co-owners.
- It stipulated that the condominium regulations must include the procedure of the Board of Directors for imposing fines, which must be decided by a substantiated resolution and notified by the Administrator.
- It introduced the entity of an Administration Committee in the residential complexes or horizontal properties for various purposes.
- As to the Administration, it stipulates that a member of the Board of Directors may not be elected as Administrator.
- The outgoing Administration is bound to deliver all of its documents to the incoming Administration.
- It created the office of Assistant Administrator with the duties, faculties, responsibilities and obligations, which the Administrator may decide.
- Requirements for the incorporation under the Horizontal Property legislation and any future modification were most clearly established.
- It also established the procedure for the Horizontal Property Department to request management reports from the Administrator and from the Board of Directors of the horizontal property entity as well as the procedure of conciliation to resolve conflicts among co-owners.
In the event that you wish to know more details about the subject, please contact us at quijano@quijano.