For residential communities in Paraguay, there is a regulatory document which is termed as “Rules of Joint Ownership and Administration.” These regulations describe the framework conditions for living in the housing complex. The basis for the document is Paraguayan civil law. The regulations have been legalized by the Emboscada municipality and are a part of the contractual documents. Below is a summary of the content of the regulations.
“Valle Tucan housing complex” rules of co-ownership and administration
ARTICLE 1
“Consortium of Co-owners”
In compliance with the provisions of the Paraguayan Civil Code, the seller and the purchasers of each lot are the Consortium hereinafter called “CONSORTIUM OF CO-OWNERS OF THE VALLE TUCÁN HOUSING DEVELOPMENT” … with the sale of the lot, the co-owner will lose their rights and duties.
ARTICLE 2
Dissolution of “Consortium of Co-owners”
The consortium under the name “CONSORTIUM OF CO-OWNERS OF THE VALLE TUCÁN HOUSING COMPLEX” may be terminated by the assembly with the approval of ninety percent (90%) of the votes of the Co-Owners.
ARTICLE 3
Exclusively-owned areas and common areas
The VALLE TUCÁN HOUSING DEVELOPMENT consists of indivisible lots exclusively for the purpose of family housing.
The surface area of each lot is noted on the plans and in each expense account…each Co-owner participates in the common rights and duties in proportion to the area of each lot or exclusively-owned area … The following areas or features are common property and are subject to enforced indivisibility: the recreational areas, spaces for relaxation, streets and green spaces in general, bridges, main access gateways, and accessories, surveillance areas, perimeter fencing, lighting networks and all their accessories (poles, lights, cables, etc..) … plants, trees and vegetation … The dimensions of streets and common spaces are illustrated in the project site plan.
The VALLE TUCÁN HOUSING DEVELOPMENT is a fully enclosed area and will feature:
– A perimeter fence with a height of 1.80 m
– An entrance gate and 24 hour security guard for personalized identification.
– Running water and electricity utilities
– Each lot has the option of an Internet connection.
The streets will be lined with natural stone … Within the development, the construction of walls is not permitted. The boundaries of the lots will be marked with a fence (max. 1 m high) or with ornamental plants.
ARTICLE 4
Scope of Co-owner rights
The co-owners may freely use the exclusively-owned areas, if they take into account:
Maintaining the development in a perfect state of cleanness, order and sanitation with regard to common property, refraining from littering within the complex;
Keeping all undeveloped areas of your property clean, tidy and free of weeds;
The ADMINISTRATION is empowered and fully authorized to maintain the cleanliness and order of any undeveloped area by itself or through third parties;
Activities that produce excessive noise, including the use of radio, TV and musical instruments at high volume are prohibited on private and public property unless expressly authorized by the administrator. Disposal of flammable, explosive, radioactive or toxic materials is prohibited on private and public property.
ARTICLE 5
On coexistence
For the purpose of maintaining order and good neighbourliness in the community, the co-owners or any residents shall:
Refrain from any act which may disturb the peace of the neighbours, or that compromises the safety of the Condominium,
Prevent damage, destruction, deterioration,
Communicate to the Administrator any case of infectious disease and if appropriate, sanitize their private area,
Communicate with the Regional Health Office.
… Allow access to the administrator or the person delegated by him.
To carry out any rearrangements or house moving, you must have written permission from the administration. None of these processes may be performed with vehicles that exceed the carrying capacity and tare of 10 tons.
It is strictly prohibited for occupants of lots to exhibit logos, signs or advertisements in the houses, or in the Commons. The Administrator, on his own initiative or by request from any tenant, may require the immediate cessation of any such infraction.
ARTICLE 6
Obligations of co-owners
Pay taxes and fees… In case of sale or transfer of the exclusively-owned part of their property the co-owner must inform the ADMINISTRATOR … The change of address must be notified in writing to the administrator. Comply with the regulations and make sure that all visitors and workers do the same.
ARTICLE 7
Basic rules of construction
The building should not exceed a height of 6 meters and not exceed one level above ground floor (two floors) … It should be located at least 5 meters from the front, 5 meters from the back and 2 meters from the side lot lines … The perimeter fences may not exceed a height of 100 centimeters … Before beginning any construction, the co-owner must obtain approval from the administration … The criterion of design and construction will be subject to the Building Regulations.
ARTICLE 8
Common Costs or Expenses
All co-owners are required to contribute to the funds necessary for the proper maintenance, operation and conservation of the facilities of the development … the cost contribution is defined by the ratio established in the table of surface area.
These funds will be used to pay: the ADMINISTRATION itself; expenses necessary for the preservation and enjoyment of the common property … ; for modifications made to the common areas and property …; all taxes and fees that affect common areas and property; salaries for the maintenance, security and cleaning personnel; replacement parts and repairs of the development and new projects …; costs, expenses and other financial consequences the Consortium may face for legal procedures or judicial or extrajudicial actions …; fuel , electricity, water , and lighting costs… ; and all other expenses necessary for the proper conservation of the common property.
For If the co-owner who fails to comply with the payment of monthly fees for common expenses … thus forcing the ADMINISTRATION has to resort todraw from the reserve fund …, The the guilty party will incurs debts in the form of consumer loans from a bank.
ARTICLE 9
Reserve Fund
A reserve fund will be constituted to meet common expenses as well as ordinary, extraordinary or unexpected costs. The fund will be contributed to by each co-owner according to the percentage of ownership … (a sum equal to the estimated expenditure for two months …). The Assembly may adjust this amount …. In case of dissolution of the consortium of co-owners, the balance of the reserve fund will be distributed between co-owners.
ARTICLE 10
General provisions
The general provisions shall be governed by these Rules and by the Civil Code …. The following are its managerial, administrative and representational bodies:
1. Co-owners assemblies (ordinary or extraordinary)
2. The Board of Directors
3. The Administrator
In addition, with the permission of the Board of Directors or the Administrator, one or more managers may be appointed.
ARTICLE 11
Ordinary Assemblies
The ordinary and additional assemblies will be held on the same principles of convention and constitution ….. The Ordinary Assembly of co-owners shall meet once within the first three months of each year … in a suitable location within VALLE TUCÁN HOUSING DEVELOPMENT.
ARTICLE 12
Additional assemblies
The additional assemblies will be held as often as called for by the administrator or by request of at least 20% (twenty percent) of the co-owners.
ARTICLE 13
Summons
The following are the provisions for conducting meetings:
All summonses will be made by the administrator, by publication in a written medium …; with a 15-day advance notice in the newsletter of the headquarters of the administration …; the place, date, day, time and agenda shall be indicated … , a minimum quorum is present.
ARTICLE 14
Quorum
After opening the Assembly of co-owners, the quorum and voting power of those present will be verified.
At first summons, assemblies with the presence of half plus one of the co-owners will have quorum… At the second summons, a quorum will be formed with any number of members entitled to vote … The co-owners may be represented by proxies … No agent may represent more than two co-owners with voting rights.
ARTICLE 15
Voting rights
Each co-owner is entitled to as many votes as the exclusively-held areas they hold … Sellers shall be entitled to as many votes as lots in their possession … In case of a tie, they will decide the matter by issuing a double vote of the President of the Assembly.
ARTICLE 16
Majorities
Voting in the Assembly shall be carried out in the form stipulated by the bureau of the assembly. Decisions are taken by half plus one of the co-owners being in agreement. The administrator will instate the assembly. A President and a Secretary will be elected from among the co-owners present. All decisions taken shall be recorded in the book of deeds of the meetings.
ARTICLE 17
Powers of the Assembly
Choose the Administrators of the development and decide their remuneration … Election of members and substitutes of the Board of Directors … Draw up the budget for common expenses … Set the amount to be allocated to the reserve fund … Approve or reject the annual accounting presented by the administration … Approval of extraordinary and urgent repairs ordered by the Administrator … Removal of the Administrator or members of the Board of Directors. Modifications of these regulations.
ARTICLE 18
Board of Directors
The representative body of the Consortium of Co-owners is the Board of Directors and for legal purposes, the Manager is the Chairman of the Board … shall be composed of four co-owners and four substitutes.
ARTICLE 19
Qualifications for membership of the Board of Directors
Be legally of age … Reside in Paraguay … Exhibit good behavior … Be owner of an exclusively-held area … Be current in meeting their obligations to the Consortium …
The following may not serve on the Board of Directors … Paraguayan State officials and Entities of Public Law … Convicts … Those not sanctioned under the rules of conduct of the consortium.
ARTICLE 20
Powers of the Board of Directors
Acquire real estate by purchase or exchange … Enact movable lease contracts as lessor or lessee, for works or services … make deposits in checking accounts and savings accounts, and write checks … receive deposits or consignments, make commissions or issue mandates … Revise and approve construction plans submitted by landowners … Verify payments … draw up the deeds or contracts … make agreements in each case on prices, interest, terms, guarantees, payment terms and other conditions … Fix the remuneration of employees … initiate or defend against complaints … make denunciations and act as prosecutor in criminal trials .
ARTICLE 21
The Administrator
The administrator is the legal representative of the consortium … He is appointed and removed by the Assembly of Co-Owners. He will stay in office for one year… The administrator may or may not be co-owner. The outgoing administrator has the obligation to give documented accounts of his efforts … He must deliver to his successor all books and documents of the consortium.
ARTICLE 22
The administrator …shall implement the resolutions of the consortium … Pay with consortium funds the accounts or invoices for common expenses … Must underwrite the management books and accounting of the consortium; present the annual spending plan … certify copies of records of meetings and assemblies … attend to and manage all claims relating to the use of common property and resolve the matters … avail himself of and take responsibility for the daily care and updating of statutory management documents such as the Book of Deeds, Cash Book, Registry of owners and the Inventory records … Make the aforementioned books available to the co-owners at least 5 days prior to the convening of each assembly… The books and papers of reference shall be kept for a period of five years from the last entry … These powers may be partially delegated to special agents
ARTICLE 23
Fiscal Year
At the end of the year, December 31, the consortium Administrator will perform the inventory, complete the balance sheet of assets and liabilities and the profit and loss account, and a record of the social situation of the Consortium; these documents will be submitted to the annual general meeting of co-owners.
ARTICLE 24
Temporary administration
An administrator elected by common consent will manage the VALLE TUCÁN HOUSING DEVELOPMENT for a term of two years from the date of registration of these regulations, during that period of the Consortium.