No Payment, No Entry: The Decree That Changes the Rules for Living in a Condominium — by Jesús Cervantes
Through Executive Decree No. 462, President Daniel Noboa amended the General Regulations to the Horizontal Property Law. The measure seeks to strengthen mechanisms for the collection of condominium fees and regulate the consequences of non-payment of ordinary and extraordinary assessments in properties subject to the horizontal property regime.
What does this mean in practice?
Does this really change anything for people living in condominiums, residential developments, or apartment buildings?
One of the most relevant changes is that the decree allows property administrations to restrict access to and use of certain non-essential common areas, services, and facilities when there are outstanding condominium fees, provided that the delinquency has been previously notified to the responsible co-owner or user.
The areas that may be restricted include swimming pools, gyms, sports courts, movie theaters, community rooms, coworking areas, wet areas, BBQ areas, terraces, unassigned communal parking spaces, and other common-use facilities considered non-essential.
However, what happens to those who are unable to pay? Are they completely unprotected? The answer is no. The decree expressly provides that these measures may not affect essential rights. This means that access on foot to the property, access to the residence, exit from the building, potable water supply, sewage systems, fire protection systems, evacuation routes, or access for persons with disabilities and emergency services may not be restricted.
The decree also establishes new procedures for notifying delinquent co-owners, entering into payment agreements, issuing statements of outstanding amounts, and increasing transparency regarding financial obligations within condominiums. Property administrations must periodically provide co-owners with information regarding collections, outstanding receivables, payment agreements, and other financial information related to the administration of the property.
