Condo associations in Mexico “The Pros and Cons”

934

Unlike what happens in most of the States, in Sinaloa the “condo regimes” have legal capacity (existence), as the legal entities such as commercial companies or civil associations have.

On August 20, 2008, more than 10 years ago, a Civil Code reform was published and, since then, it is not essential that a “civil association” be constituted in parallel with the Condominium Regime.

As an association, the Condominium is represented by its administrator (natural or legal persons) and, having legal identity, must obtain its Federal Taxpayer Registry from the Tax Administration Service, which will allow it to open and operate bank accounts for the management of Condominium expenses.

Additionally, as a consequence of the legal personality recognized, the Condominium may enter into all kinds of contracts, in order to carry out satisfactorily the functions set forth in the articles of incorporation.

The civil associations that have been created can represent a significant economic burden, since their operation must be maintained. The worst of all is that according to the Federal Constitution no one can be forced to be part of an association or to remain in it, so that eventually the civil associations may not be represented by all the condominium owners and their decisions taken in general assembly do not they would be binding.

However, the association can be useful if it is created for the purpose of administering the Condominium, limiting said acts to paying and keeping accounts, taking care that the association does not make decisions of the general assembly of condominium owners, as in the case of the modification to the regime or its regulation.

The association can be liquidated and dissolved, and must be discharged before the SAT.

The notaries of Sinaloa serve to improve social coexistence and seek peace.

Fiscal Obligations of the Condo Regime:

• Be enrolled in the SAT • Have Advanced Electronic Signature and digital seal (FIEL) • Register in the Tax Inbox • Keep accounting which is integrated by daily and larger book, Checking Balance, work papers, account statements, among others. • Issue receipts of condominium fees through CFDI • Collect the tax receipts that prove the disposals and disbursements that they make, the services they provide (EXPENSES) through CFDI • If applicable, monthly statement of withholdings • Annual informative declaration.

Author:


Fernando García Sais
Abogado, Doctor en Derecho y Notario Público 210
Juris Doctor, Ph.D. & Notary Public
www.garciasais.com.mx