Financial Leasing of Real Estate in Panama
24/11/2020
Executive Decree No. 229 of December 15, 2020
21/12/2020[vc_row][vc_column][vc_column_text]
Law 180 of November 16, 2020
Which modifies Law 31 of 2010 on the Horizontal Property Regime
GENERAL DISPOSITION
Article 1. Number 36 is added to article 5 of Law 31 of 2010, as follows:
Article 5. For the purposes of this Law, the following terms shall be understood as follows:
…
Owners in good standing. Those who, having one or more real estate units in the same property registered in the Public Registry in their name, have paid the common expense fees for all of these real estate units in the current month.
THE ASSEMBLY OF HORIZONTAL PROPERTY OWNERS
Article 2. Article 50 of Law 31 of 2010 is as follows:
Article 50. The Assembly of Owners shall meet in ordinary session at least once a year, which must be called by a member of the Board of Directors in the month indicated in the Co-ownership Regulations. The call shall be made no less than ten days and no more than twenty calendar days prior to the holding of the meeting, which shall be communicated through a written document to the real estate unit or by any technological means, addressed to the electronic address or digital data indicated by each owner, attaching the budget project, the management report by the Board of Directors and the audited financial statement for the previous period.
If two months have passed since the month in which the ordinary assembly meeting should have been called by the Board of Directors, it may be called by its own right by 20% of all the real estate units that are up to date with the payment of common expense fees.
The Owners’ Assembly will also meet in an extraordinary manner, when the needs are unforeseen or urgent. The call will be made by the Board of Directors, the administrator or by request to the aforementioned, by at least 20% of all the real estate units that are up to date with the payments of the common expense fees. The call will be made no less than ten days and no more than twenty calendar days prior to the holding of the meeting, which will be communicated through a written document to the real estate unit or by any technological means, addressed to the electronic address or digital data that each owner has indicated.
If an extraordinary meeting is requested by 20% of all real estate units that are up to date with the payment of common expense fees and it is not called within the following ten calendar days by the Board of Directors or the administrator, the aforementioned percentage of owners will call it by their own right.
Calls for proposals must contain, as a minimum, the following requirements:
- Date on which the call is made.
- Class of Owners’ Assembly meeting.
- Date on which the Owners’ Assembly meeting will be held.
- Time at which the Owners’ Assembly meeting will be held.
- Place or technological means where the meeting of the Owners’ Assembly will be held.
- Agenda of the topics to be discussed at the Owners’ Assembly meeting.
- Name and position of the person calling the meeting.
In the event that the Owners’ Assembly meeting is ordinary, the budget project, the management report and the audited financial statement of the previous period must be attached as a minimum; failure to comply with these requirements will not result in the call for an Owners’ Assembly meeting requested by 20% of all the real estate units that are up to date with the payments of the common expense fees.
Article 3. Article 51 of Law 31 of 2010 is as follows:
Article 51. The Owners’ Assembly is considered legally constituted with the attendance of more than half of the owners in person or by technological means, regardless of the number of real estate units that belong to each of them. The Owners’ Assembly may meet in person or by technological means that have validable audio and video.
If one hour has elapsed since the time specified in the call and the required quorum is not present, the secretary will draw up minutes stating this circumstance, as well as the number, name and percentage of participation of those attending the Owners’ Meeting.
Once this formality has been fulfilled, the Assembly may hold a session, deliberate and adopt valid decisions with a quorum equivalent to 20% of the owners, provided that this Law does not require a different percentage to achieve valid decisions. If the decision is taken in a second call session, the provisions of Article 32 apply.
At all meetings of the Owners’ Assembly, the owners may be represented by a representative, who does not necessarily have to be an owner.
When a real estate unit belongs to several people, the interested parties must designate only one person to represent them at the meetings of the Assembly of Owners, as well as for the purposes of notifications and for all acts relating to the horizontal property.
Likewise, every legal entity that owns real estate units will be represented at said meetings by a single natural person, who will be its representative, without the need to require that he or she be the legal representative of the company.
The power or authorization may be granted through a physical document, public or private, or electronically, and must contain at least the data of the owner, the name of the agent and identification of the real estate unit by property number and real estate unit number, and may also indicate the powers conferred. Such designation for the Owners’ Assembly meeting held by technological means must be made no less than twenty-four hours prior to the meeting.
The administrator, by his or her own functions, may not represent any owner.
For the purposes of this article, it is understood that the right to vote corresponds to the real estate units they represent.
Any provisions regarding meetings held through technological means will be regulated by the Ministry of Housing and Territorial Planning through a ministerial resolution.
Article 4. Article 53 of Law 31 of 2010 is as follows:
Article 53. Any decision adopted by the Assembly of Owners in order to have legal effect and be binding must be approved by more than half of all the real estate units that are up to date with the payment of the common expense fees, except as established in articles 32 and 51, or when this Law establishes a different percentage for its approval. The decisions of the Assembly of Owners shall be recorded in minutes that shall state, as a minimum, the following:
- Minutes number and type of meeting.
- Name of the horizontal property.
- Place or technological means, date and time that must coincide with those indicated in the call notice, and the transcription of the call notice with the formalities established in this Law.
- List of owners or representatives who attend in person or by any valid technological means, specifying the real estate unit number, the property number, the registration data, the participation coefficient and the form of participation.
- Quorum of the meeting taking into account the number of owners who attended in person or by technological means and the number of real estate units that make up the horizontal property.
- Who served as president and secretary of the Assembly of Owners and the manner in which they were elected, in the event that they are not holders of the position.
- Matters discussed.
- Proposals submitted, indicating whether they were approved or rejected and the form and number of votes.
- Start and end date and time or suspension and restart, if applicable.
- Signatures of those who acted as president and secretary of the Assembly.
The decisions adopted must be communicated within a period of no more than three calendar days, counting from the date of the meeting.
The minutes must be issued within a period of no more than ten calendar days, counting from the date of the meeting, and will be delivered by the secretary or the administrator to the owners when they request it.
In the case of a meeting of the Owners’ Assembly held through technological means, the secretary of the Board of Directors must keep a digital copy as unequivocal proof of this.
THE BOARD OF DIRECTORS OF HORIZONTAL PROPERTY
Article 5. Article 64 of Law 31 of 2010 is as follows:
Article 64. Calls for meetings of the Board of Directors will be made by the president or, failing that, any member of the Board of Directors, which will be communicated through a written document to the real estate unit or by any technological means, addressed to the electronic address or digital data indicated by each owner, no less than five and no more than fifteen calendar days before the date of the meeting.
Only matters that have been the subject of the call may be considered in extraordinary sessions.
Article 6. Article 65 of Law 31 of 2010 is as follows:
Article 65. To constitute a quorum at a meeting of the Board of Directors, the personal attendance or attendance by any valid technological means of more than half of all directors shall be required. Decisions of the Board of Directors shall be taken by the affirmative vote of the majority of the directors participating in the meeting with the right to vote.
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