Haciendas Palo Verde Legal

Legal Information for Property Owners.

1. This seems to be very complex with these 2 organizations, is there not a simpler way to manage the HOA?

Yes, our current corporate structure was created in 2007 and 2008 under the prevailing law at that time. It is somewhat complex and has led to many confusions as demonstrated in our history of minutes. In the meantime, laws have changed and there are new options available to us. A reform of our corporate structure could simplify the administration, remove some of the existing ambiguity and repair errors that endanger the legality of our HOA and have  occurred over time.
Property owners could come together, work through the necessary changes with the help of a competent attorney and confirm them with more than 75% in a General Assembly. 

2. Have the Regime and the Association not been integrated by an AGM decision?

No, there is no legal mechanism to “integrate” two organizations, they continue to exist independently and are subject to their respective laws. But there are other legal options to simplify the HOA administration.

3. When the minutes are notarized and registered aren’t they valid?

Notarization in Mexico does not include a judicial review for lawfulness. In other words the notarization does not certify that a document is legal. It is simply a record that a certain document was presented to a Notary and the Notary confirms and registers it. 

4. Isn’t the HPV Condominium regime of the type of “touristico” and we do can as we like?

No, the HPV Regime is incorporated in 2008 of the type of “Condominium Ownership Regime of Land” (terreno). The type “touristico” did not exist in the 2008 law and was added to the regime law in its version from 2016. The type of a Condominium Regime is set at the time of incorporation and cannot be amended.

5. Is the Surveillance Committee the same as the Vigilante Committee or Oversight Committee?

The Condominium Regime Law in Spanish names the “Comite de Vigilantes” as the board for the Condominium regime. This got translated into Englisch as  “Vigilante Committee”, “Surveillance Committee” and in newer translations “Oversight Committee”. Based on the actual function of the “Comite de Vigilantes” the translation as “Oversight Committee” seems to be semantically the most accurate. But all three names “Vigilante Committee”, “Surveillance Committee” and “Oversight Committee” are used in the literature interchangeable.

6. In HPV, is the Vigilance Committee not the same as the Board of Directors of the Association?

In our bylaws for the Condominium Regime Article 4.23 “Definitions” states the Vigilance Committee is formed by 3 persons; president, secretary and treasurer of the Home Owners Association. That is not legal, as it conflicts materially with the law that states the Vigilance Committee has to be elected by the Property owner Assembly of the Condominium Regime.

Then the bylaws continue and contradict their own definition by stating in article 15 the Vigilance Committee consists of at least 3 persons and  “will be elected by the majority of votes in the first Homeowner Assembly each”. 

As a result, the Condominium Regime law prevails. The Vigilante committee can have 3-5 members and has to be elected by the Assembly for the Condominium Regime.

7. Isn’t our AGM a combined meeting for the whole of it?

No, by law, each of the two organizations needs to have their own meetings. In the past, there was great confusion in HPV about it. From 2008 to 2011, meetings were called for both organizations (Regime and AC) as joint meetings. From 2012-2019, meetings were called for the Association, but not for the Regime. Since 2020, meetings are called for the Regime but not for the Association.

8. Did the HPV AGM 2017 not declare the Oversight Committee and the Board of Directors to be the same.

Yes, they did, but this does not conform with the law and therefore null and void. (This is an example where notarizations does not establish legality).

9. Isn’t our Homeowners’ Regime ”grandfathered” in, because it was incorporated in 2008 and the newest Regime law is from 2016?

No, in Mexican law, only the current version of  any law with all reforms applies. There is no such thing as “grandfathering” in Mexican law. If a new version of the law contradicts a Regime bylaw that was legal under the older version of the law, the Regime can continue to follow this bylaw until they amend it, at which point it has to follow the new law. 

10. Is the Administrator empowered to issue pet regulations for the HOA?

No, pets are private property and pet regulations are by law part of the regulations under the authority of the Home Owners’ Assembly. 
The authority of the Administrator is limited to common property like the clubhouse. The Administrator can for example set pool rules for the usage of the common pool.
The Condominium Regime Law In Title 4, Chapter 1, Article 45 specifies which items belong in the regulations of a Condominium Regime. Article 45 

XIII.- Determine, where appropriate, the measures and limitations to possess animals both in the Unidades de Propiedad Exclusiva and in the common elements, as well as the sanctions to those who contravene said measures;

“Measures and Limitations to possess animals” are legalise for “pet policy”. The Law clearly stipulates that those are parts of the Regulations, not Operations Procedures. In connection with Title Three Chapter 1 “Of the Supremacy and Attributions of the Assembly”  is furthermore clear pet regulations fall under the authority of the Assembly and not in the authority of an Administrator.