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Mar 13, 2013, 10:56 AM

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Facts about the El Dorado development

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In El Dorado there are three Condominium associations: (the Compound Condo, (related to the common area and services such as pool, roads, security, water, etc.), Condo 1 for the villas, and Condo 2 for the tower apartments).

Two years ago, Condo 1 held its first Ordinary Assembly in accordance with all Jalisco Code requirements. Last year, Condo 1 held its second Ordinary Assembly in accordance with all Jalisco Code requirements.

Almost two years ago the majority of Villa owners filed a Civil Complaint against the “Administration” of the Compound Condominium.

/b What are their issues?
The unauthorized change to their by-laws

Example: Who gets to vote on the annual operating budget for the Compound Condominium?

The Villa owners want to be part of this budget process, because 67% of the Compound Condominium operating budget is paid by Condo 1.

Each Deed for an El Dorado Villa property specifies a percent ownership in the “areas and common elements” of Condo 1 and another specified percent ownership in the “areas and common elements” of the Compound Condominium. These two percentages are based on the “lot” land area for a Villa divided by the total land area of Condo 1 and the Compound Condominium, respectively.

The El Dorado Bylaws state that each Villa owner has voting rights equal to their specified percent ownership, but for the Compound Condominium Ordinary Assembly they may exercise that voting right only through their Condo 1 Administrator.

The Bylaws further state that the Compound Condominium must hold an Ordinary Assembly once a year, and the only allowed attendees are the applicable Administrators, i.e. from Condo 1 and Condo 2.

However, a year ago those in control of the Compound Condominium Ordinary Assembly refused to admit the Condo 1 Administrator. This fact was documented through a Notario.

If you were a Villa owner, you would more than likely want to have your vote count on the annual operating budget for the Compound Condominium.

Of course, there are more issues, but an impartial and objective third party can easily see that this is a dispute about: (1) control, (2) money, (3) property and voting rights, (4) compliance with Jalisco Code requirements, and (5) Villa property values.

What is happening currently?

Recently, Condo 1 requested an investigation of the “Administration” of the Compound Condominium through the Ministerio Publico, to determine where the Condo 1 payments have gone. The Compound Condominium has produced no financial reports to the owners for 3 years. These reports are required under Jalisco law.

One “unhappy” Villa owner through a local attorney has filed a Criminal Complaint of fraud against the duly elected Condo 1 Council Members and Administrator. The actual charges will be published soon for all to see.

Were the members of the Condo 1 Council and Administrator arrested?

Yes. Why?

As opposed to Common Law in Canada and the U.S., under Civil Law procedures in Mexico, if an attorney presents a complaint to a Judge that “on paper” has the appearance of being real, then the Judge most likely will charge the defendants.

This means the defendants get arrested and released (usually within 72 hours).

Next, the defendants must prove their innocence. This is just the way the legal system works here.

What we have is a dispute that started at least two years ago. This year the dispute is heating up.

Stay tuned as the actual charges will be be posting here (if allowed ) so all can see them.

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