mixed-use building

In modifying the coefficients, the endorsement of the co-owners is important

A group of owners of a mixed-use building (offices and commercial premises) commented that in an extraordinary meeting it was agreed to review and adjust the property coefficients; this, because several private properties have been reformed and the built areas do not correspond to those that were taken as the basis for the initial calculation of the regulation.

The consultants, who have expressed their disagreement, consider that their rights and form of contribution would be changing them at the common expense. Therefore, they request an opinion on the case, since the point will be included in the decision of the next ordinary assembly.

Answer. Co-ownership coefficients not only determine the participation that the owners have over the common goods and the legal entity but also their right to make key decisions for the building or complex. In fact, they are decisive for setting the ordinary and extraordinary expenses (fees).

Except in the case of provisional coefficients – in accordance with the provisions of the real estate regulations that are carried out in stages, and those provided for in article 28 of Law 675 of 2001 -, the coefficients cannot be modified without express consent. Of the owners to whom this index is varied. In the events cited by law, a decision quorum of 70 percent of the total coefficients is required.

On the other hand, the Horizontal Property Law is clear regarding the matters that are the object of deliberation and decision in the ordinary assembly; for this reason, I consider that the reform of the regulations in this regard should be submitted to the decision of an extraordinary assembly in the cases provided for therein, especially because of its importance.

Doing so would not ignore the rights of the owners affected and not attending, who could challenge the decisions made. In any case, decisions that require a qualified quorum of 70 percent of the coefficients cannot be taken in second-call meetings or in non-face-to-face meetings.

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How much is a co-ownership worth?

In the framework of the Horizontal Property Seminar ‘Tools and New Trends’, organized by Fedelonjas and the Sonja de Bogotá, they spoke about the importance of knowing the value of joint property and the cases in which it is necessary to make an appraisal of it.

Metrocuadrado.com interviewed Camilo Bermudez González, president of the Board of Directors of the Sonja de Bogotá and Andrés Martinez Umami, executive president of the Sonja de Bogotá.

According to Martinez, “Law 675 of 2001 establishes that co-properties can request the appraisal of both the common areas and the private areas, but they must necessarily request that the common areas be appraised.”

What is a co-ownership valued for?

The value of joint property is basically needed to know the replacement cost that it has. That is, how much is it worth to return the property to the original construction conditions, according to Martinez.

Generally, determining this value has two functions: knowing the insurable value and on the other hand for accounting purposes. “For insurable purposes, the value of the land is not taken into account, because the value of the land is a common good that does not depreciate and therefore is not an insurable value. The insurable value is the replacement cost of the common areas. In the book value if you have to include the land, but in the same way it is handled as a replacement cost of the unit again”, assured Bermudez.

Then, those who use the value that is established in the appraisal are the insurance companies, to determine what the insurable value is.

How often should the appraisal be done?

Insurers typically require a co-ownership appraisal to be done annually, experts said.

What determines the value of co-ownership?

The value is established based on the state of conservation of the goods. “The better common areas and common services a unit have, the more value it can have. If its deterioration is allowed to accelerate, obviously its value is detrimental,” commented the president of the Board of Directors of the Sonja de Bogotá.

In which cases is the insurer responsible for the replacement value?

“In cases where there is a loss, either due to a seismic movement, fire or any calamity, the insurance company enters to evaluate what the damages were and has to pay them at its replacement cost, that is, to replace it again “, Bermudez expressed.

It is important to clarify that in the event that the damage to the common goods is due to natural deteriorationthe insurer is not liable for them.

Who makes these appraisals? 

In these cases, as for the appraisals of private goods, Law 1673 of 2013 and Regulatory Decree 556 of 2014 govern, which stipulates that appraisers must have an open registry of appraisers to be able to carry out their activity, Martinez concluded.