Distribution of condo fees under law 5038

suzannel said:

Our condo Board have decided unilaterally to separate costs of operation.
They have identified costs which they wish to divide between the number of units in the complex as a fixed cost and costs they wish to divide by square meters.
I am contesting these calculations based on the Rules and Regulations which were drawn based on the Law of condominium 5038. I contest that all costs approved in the budget by the Association must be divided by surface/value of the unit owned (by square meters).
This makes a real difference in costs.

The way they want to calculate, the smaller units are paying more and the bigger units are paying less.

I do plan on seeing a lawyer on this, I would like the resident Lawyer to comment on this.

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The Condo board has no legal power. Whatever they decide requires approval of the Assembly to be legally enforceable.

I know this because when the board of the condo where I live was working on the revision of our rules, we were told this by our lawyer, who is also the resident lawyer, when we were working on the section on powers and responsibilities of the board of directors. He said we can decide on policies, etc., and implement them until next Assembly providing they are accepted by the owners. However, for them to continue beyond the next assembly, they must be ratified by the Assembly.

He also made clear that if a policy made by the board was ever challenged in the Land Court, the court with jurisdiction over condominium matters, that it would be overruled because the board has no legal standing. The condominium law mentions the administrator and the assembly, but does not recognize a board of directors.

Fabio Guzman, the lawyer who answers legal questions on this board, is the foremost lawyer on condo matters in the country. He has written the book on condo law that is referred to by other lawyers.

Changes cannot be made in the proportion of condo fees payable by each owner without the UNANIMOUS consent of all condo owners. (Art. 4 of Law 5038)

Distribution of condo fees under 5038

Mr. Guzman,

Where I live in Cabarete we are experiencing the same thing. The project is brand new and the cost assoc with all expenditures including Maintenance fee, Insurance etc are ALL based on the formula of 50% Common Area, 25% Sq Ft., 25% number of bedrooms. This formula is very flawed as an apt with 70 meters is paying more than $2.00 a Sq Ft. more than the Penthouse on a Insurance bill of $17,500 US dollars.

How can I get that formula changed?, It isn't fair! Please help, I am getting robbed. Do I have any legal recourse?

Thank You in advance and if I have legal recourse please be my attorney!

Egads!!

Reminds me all over again why I do not ever want to live in a condo with a bunch of busybodies who do not get along with each other.
Not to mention the condo commando types who always want to be in charge of everybody. I am happy with only one neighbor on either side, a fine tall stone fence and three dogs who do not bark excessively but are very alert and look mean. Never had a seconds trouble in four years.

sorry

I did not wish to seem unsympathetic to your plight but I really dislike the condo arrangement. Good luck with your problem. It sounds like "the board" has over stepped their legal rights and you will be fine.

In response to zoomzx11...... you are so right!! That is exactly what living in certain condo's is like!!! Unless you want to be at war all the time, you just suck it up and move on!!!

corvetteguy said:

Mr. Guzman,

Where I live in Cabarete we are experiencing the same thing. The project is brand new and the cost assoc with all expenditures including Maintenance fee, Insurance etc are ALL based on the formula of 50% Common Area, 25% Sq Ft., 25% number of bedrooms. This formula is very flawed as an apt with 70 meters is paying more than $2.00 a Sq Ft. more than the Penthouse on a Insurance bill of $17,500 US dollars.

How can I get that formula changed?, It isn't fair! Please help, I am getting robbed. Do I have any legal recourse?

Thank You in advance and if I have legal recourse please be my attorney!

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You might be better off starting a new thread. Since this is an old thread, he might not see your message.

If the system adopted is inherently unfair there is a chance that a court might change it. For this you should take all the condo docs to an attorney specialized in condo law for a consultation.