obtaining a regular majority vote at a condominium meeting

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Gordon

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Jan 24, 2011
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Dr Guzman,

question 1
Can a judicially appointed administrator add in penalties or interest on condo fees that are in arrears? The penalties would accumulate on a monthly basis when calculating the amount for registering a lien against unfullfilled obligations? If so would 10% penalty be appropriate?

question 2
I would appreciate help in determining how one could obtain a regular majority count for this association using basic condominium law 5038. The intent for the regular majority is to proceed to lien and then auction on some units.
The complex has 14 units. Seven units were sold to owners presently current on condo fees. Three more units were sold years back and the owners never paid any condo fees or else stopped paying after a period of time. Two more units were taken back by the developers' company after being sold and remain unsold a second time and are unoccupied. One more unit was never sold but rented out by the developer but now unoccupied. The final unit was never sold but the developer lived in the unit for several years and it is now unoccupied.

Would the developers company get one vote or four votes or any for the four units under their control? The three units with owners that are in arrears appear to be able to cast votes but are unlikely to vote in favor of approving liens. Of the remaining seven units, with owners in financial good standing, some have lost interest in involvement at any level, their permanent domicile is foreign based and are almost impossible to obtain a response from to obtain proxy or even opinion. I struggle to find alternative solutions so we can move forward with reponsible action within the condominium legal framework and make the project maintenance and security financially viable.
 
K

Ken

Platinum
Jan 1, 2002
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I'm very glad that I don't own an apartment in that condo.

Prospective owners should investigate how the condo is organized, what rules it has, etc., before investing. Unfortunately, very few do.

I hope Fabio can come up with a good answer for you, but it does not sound like a good situation unless the developer is willing to work with you.
 
G

Gordon

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Jan 24, 2011
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Ken
The purchasers bought into the project in the pre completion stage. Most purchasers did what would be due diligence in a country with standards and were sucked in by assurances by lawyers with nice offices and some even with references. There are a lot of problems and now I am finding out compounded by a legal system that is slower than it should be and has a lot of loose ends. I could go on but why. The bright side is the project did get completed and it is a wonderful place and really paradise if you remove the people from the equation. If some of us can remain optimistic and continue we are at the tail end of a long fight and there is a light there somewhere. If it turns out like we anticipate then it will provide inspiration that perseverance can eventually overcome the horrors of legal incompetence. Some of us have taken on the battle over odds and we will bring back on board the sceptical.
In this case it was an ex pat developer that provided some false assurances and lies. The people that are going to get this back on track for us are Dominican.
 
B

belmont

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Oct 9, 2009
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You may have difficulty in even having a quorum at a meeting, depending on how your association rules read. When you add the foreign owners, those is arrears and those held by the developer that equals 50%. It may be more or less if voting share is determined by size of the units.
 
F

Fabio J. Guzman

DR1 Expert
Jan 1, 2002
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www.drlawyer.com
Gordon said:
Dr Guzman,

question 1
Can a judicially appointed administrator add in penalties or interest on condo fees that are in arrears? The penalties would accumulate on a monthly basis when calculating the amount for registering a lien against unfullfilled obligations? If so would 10% penalty be appropriate? The amount to be recorded is the amount shown in the resolution taken in the condo meeting that approved the collection. Hopefully, the resolution added language regarding the penalties

question 2
I would appreciate help in determining how one could obtain a regular majority count for this association using basic condominium law 5038. The intent for the regular majority is to proceed to lien and then auction on some units.
The complex has 14 units. Seven units were sold to owners presently current on condo fees. Three more units were sold years back and the owners never paid any condo fees or else stopped paying after a period of time. Two more units were taken back by the developers' company after being sold and remain unsold a second time and are unoccupied. One more unit was never sold but rented out by the developer but now unoccupied. The final unit was never sold but the developer lived in the unit for several years and it is now unoccupied. You need eight (8) votes to approve the lien established under the condo laws.

Would the developers company get one vote or four votes or any for the four units under their control? The three units with owners that are in arrears appear to be able to cast votes but are unlikely to vote in favor of approving liens. Of the remaining seven units, with owners in financial good standing, some have lost interest in involvement at any level, their permanent domicile is foreign based and are almost impossible to obtain a response from to obtain proxy or even opinion. I struggle to find alternative solutions so we can move forward with reponsible action within the condominium legal framework and make the project maintenance and security financially viable.
Click to expand...
The developer gets four votes, one for each condo, unless the regulations stipulate otherwise.
 
G

Gordon

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Jan 24, 2011
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So how does a weak condominium association (weighted with apathetic international investors) get quorum or a majority vote on anything? Left over Krispy Kremes at an annual meeting is such a sad sight!

Could one change the voting count qualifications by defining owner vote differently through a bylaw or resolution? Lets say the regular majority required was for only those owners attending or using proxy. This would eliminate those that were notified but ignored the meeting. This could voted on at a meeting that was fortunate enough to establish quorum and obtain a regular majority vote. Bylaws could be added to say an owner has to be in good standing with condo fee payments in order to vote. I am not even sure quorum is mentioned in the condo law.
 
K

Ken

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Jan 1, 2002
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Do you have written rules? You have to start with what they say. To make any changes to the rules--addition, amendment, deletion--requires approval of 75% of the owners, that is in the condo law.

What you really need is the help of a lawyer very knowledgeable about condo law, has proven competence in matters before the land court, the court with jurisdiction in condo law cases.
 
G

Gordon

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Jan 24, 2011
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I am not up on translated legalese but I think even if I was a lawyer I would have nightmares figuring what this meant in regards to a vote count.

"Article 12.- The resolutions of the condominium association shall be binding on all unit owners, provided that such resolutions shall have been passed by majority of votes of all those concerned, in duly convened meetings.
Each unit owner shall be entitled to a number of votes in proportion to the importance of his/her rights in the property, which shall be conventionally fixed upon registering the property as provided by this law.
These voting rights may be modified only by the unanimous consent of all unit owners.
A three-fourths majority of the votes of the unit owners, and an ordinary majority of them shall be required in order to enact, amend or substitute any provision contained in the bylaws for which this law or the original bylaws do not require the unanimous consent of all unit owners."
 
K

Ken

Platinum
Jan 1, 2002
13,884
495
83
Gordon said:
I am not up on translated legalese but I think even if I was a lawyer I would have nightmares figuring what this meant in regards to a vote count.

"Article 12.- The resolutions of the condominium association shall be binding on all unit owners, provided that such resolutions shall have been passed by majority of votes of all those concerned, in duly convened meetings.
Each unit owner shall be entitled to a number of votes in proportion to the importance of his/her rights in the property, which shall be conventionally fixed upon registering the property as provided by this law.
These voting rights may be modified only by the unanimous consent of all unit owners.
A three-fourths majority of the votes of the unit owners, and an ordinary majority of them shall be required in order to enact, amend or substitute any provision contained in the bylaws for which this law or the original bylaws do not require the unanimous consent of all unit owners."
Click to expand...

To hold a meeting you must have a quorum which is 51% of the total number of apartments represented by the owner or his proxy.

If you have a quorum, then most resolutions can be passed by a majority of those present and voting.

I say "most" because the condo law (and sometimes the rules) specifies the majority required for some resolutions. One of them is adopting, revising or deleting rules. That requires the votes of at least 75% of the owners. This is specified in the condo law.

Another is how the votes are divided. Do the rules say every apartment gets one vote, or do they say that some apartments have one and a fraction while others have less than 1 (some condos have this with the more expensive apartments having more voting power and also paying higher maintenance fees.) The law says that this division of voting rights can be changed only by the approval of 100% of the apartments.
 
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K

Ken

Platinum
Jan 1, 2002
13,884
495
83
In terms of votes required, if there are 14 apartments 8 must be represented to have a quorum, 11 must vote in favor to modify the rules, and 14 must vote in favor of changing the division of voting rights.

If you have a quorum, then a majority of those present a voting can approve resolutions that neither the condo law or your rules say require more than a simple majority.
 
O

oriole100

Bronze
Oct 9, 2005
807
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Can you get any Proxy's from any of the old owners? Otherwise I think your stuck. I don't the devloper will vote with your group. Good Luck.
 
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