The state of Nayarit has seen an enormous increase in condominium development in the past 5 years. With the establishment of the Punta Mita market and the increase in golf courses, and better highways, condominium development had become a large part of the real estate inventory for sale in Nayarit. 

Developers such as El Faro Real, Punta Vista II, Villas Las Parotas, Casa del Sol, Punta Mita Master Resort, Paradise Village Palace Royale, Punta Esmeralda, Flamingos Club Residential, among others, are building a large inventory of horizontal and vertical condominium products. 

The revision of the condominium law in Nayarit is a detailed, well–conceived body of regulations designed to protect the consumer and owners of condominiums in Nayarit. 

The following is a summary of some of the elements of the law enacted and superseding prior law before June 2002. Condominium developments not in compliance of the law change were given a period of six months after the 2002 law to be in compliance. This current law addresses many of the problems encountered in the past by government officials, developers, and condominium owners. This law is an evolution of further problem solving of condominium issues. 

Vertical Condominium: A property built on various levels on land commonly owned. Each owner has the right for private ownership over his/her unit and right to co-ownership of the land and other common areas, according to the deed and by-laws of their condominium regime. 

Horizontal Condominium: Property built, developed, or planned, where part of the land and other property have exclusive ownership. Each of the condominium owners shall have a right to private ownership of the land of his/her individual unit and in the co-ownership of commons elements as defined by the condominium deed and by-laws. 

Combination Condominium: This type of property and ownership is a combination of vertical and horizontal condominiums on the same land or in the same building complex. 

Types of use: Condominiums may be residential, commercial, industrial or a combination of all types. 

By-laws and the condominium regime must be recorded as a public deed, which specifically includes the building permit, location, dimensions, measurements, and boundaries of the property, as well as a general description of the construction and quality of materials. It shall also include the description of each unit of private property, including location, boundaries, measurements, places and spaces for parking for specific identification. 

The monetary value of a private unit shall be listed, as well as its percentage in relation to the monetary value for the entire property. The common areas and improvements shall be described in detail in the public deed. 

There is an obligation by the condominium owners to contract for insurance with a legitimate authorized company against earthquake, flood, explosion, dire and third party damage. 

The builders or those obligated for the construction of the project shall list their warranties, as well. 

The public deed shall note the general plans authorized with the permit from the government agencies responsible for same and include the plans for each individual owned unit, as well as plans for the sewer and electrical installations, foundations, gas lines, common areas as certified by the federal agency responsible for giving approval. 

The bylaws, as well as contracts of change of ownership or any legal act that affects the property or ownership, must comply with the requirements of this law and shall be registered in the public registry. 

Any changes in the deed or by-laws must be agreed upon during an extraordinary general assembly in which at least 50% per cent, plus one owner shall be in attendance. A minimum vote of 75% of the total condominium and a simple majority of the total condominium owners is required to pass an act. 

The right of each condominium owner over the common areas shall be proportional to the value of his/her individual property as stated in the deed. 

There is an additional requirement that construction projects or repairs shall not be done at night, unless in the case of an emergency. 

The Laws of Ecological Protection for the Environments is addressed. Trees cannot be chopped down or transplanted except in specific instances. Parking in common areas may not be marked by boundaries or have coverings unless an agreement is made at a general assembly. Possession of animals, that by their size, number or nature affect the security and well being of the owners, are prohibited. 

When a condominium owner does not respect the legal use of the common areas, he/she will be liable under the law. 

The law addresses the rights of co-owners as well as renters and occupants of a unit. 

The law also addresses the issue of a renter's priority right to purchase the condominium, if it becomes available for sale. If the procedure is not followed according to the law in regard to the rights of the tenant to purchase, the sale can be in violation of the law. The renter has the right to sue for damages up to a certain monetary amount. The renter must follow the law as well, or he/she shall not be considered eligible for damages. 

Improvements to the common areas may require payment by the adjacent condominium owners. In vertical condominiums where the land is owned in common, all condominium owners shall pay for the common area projects on it. 

An interesting addition to the law is that in vertical condominium projects, the condominium owners of private units located on the first and top floors shall not have more rights than the rest of the condominium owners. Unless it is otherwise established in the by-laws, the condominium owners on the ground floor or top floor may not occupy common areas in an exclusive or preferential manner. This affects designated private use of common ground floor areas and the rooftop of the building. 

The condominium owners must agree to the repairs of the construction of the common areas and general utility installations in the proportion that each one represents within the total development. There may be an agreement to the contrary, if said agreement does not harm another owner. This clause is attempting to address the practice of owners paying the same condominium dues, regardless of the differences in sizes of their private ownership and their percentage of common ownership. 

A clause in the new law is so specific as to state that, in the case of eviction, the owners shall be responsible for cleaning of the unit. 

Very important difference from previously: the original owner(s) of the condominium shall be responsible for hidden defects of the construction for one year after the turnover date of the property. 

Owners are required to make urgent repairs to common areas or utilities if the administrator is absent. This requirement gives the owners more responsibility in this type of situation. The law does not allow owners to blame the administrator for damages when they are not on the property. 

All the condominium owners shall pay for the expenses that are part of the operating and maintenance of the common areas and utilities. 

Professionals must be hired to handle the maintenance of common areas and utilities. 

What is not covered specifically in this body of law is covered in the Civil Code for the State of Nayarit and other applicable laws. 

This condominium law is more advanced at this time than the one in Jalisco. 

Harriet Cochran Murray

This article is based upon legal opinions, current practices and my personal experiences in the Puerto Vallarta-Bahia de Banderas areas. I recommend that each potential buyer or seller conduct his own due diligence and review.