Horizontal property is a legal regime that regulates cohabitation in buildings and residential complexes. While it facilitates shared space management, it also presents legal and operational challenges. In this article, we will explore the main challenges faced by communities and horizontal property managers and provide practical solutions to ensure efficient and legally compliant management.
Knowledge of Law 284 of 2022, the application of conflict resolution mechanisms and the implementation of good practices in the management of common assets are key.
Challenges:
1. Lack of regulatory compliance.
Law 284 of 2022 regulates horizontal property in Panama and establishes the obligations of owners, administrators and boards of directors. However, many communities are unaware of or do not comply with these regulations, which generates conflicts and legal sanctions.
Main breaches:
- Failure to update internal regulations.
- Lack of knowledge of the powers of the board of directors.
- Failure to submit annual financial reports.
- Lack of knowledge of the incorporation deed to the PH Regime.
Solution:
- Train administrators and co-owners in Law 284.
- Conduct periodic audits to ensure compliance.
- Seek advice from lawyers specializing in horizontal property.
2. Conflicts between co-owners.
Differences between residents can escalate into legal disputes if not handled properly. Common causes of conflict:
- Disturbing noises and disturbance of tranquility.
- Improper use of common areas.
- Non-payment of maintenance fees.
- Damage to property belonging to another owner or to the common property of the PH, and they do not have the Civil Liability Policy.
Solution:
- Implement mediation and conciliation mechanisms.
- Establish effective communication channels between the administration and the co-owners.
- Apply sanctions in accordance with the regulations of the horizontal property.
3. Financial problems in the Administration.
The financial management of horizontal properties is one of the greatest challenges since poor management can lead to financial deficits and deterioration of the facilities. Common mistakes:
- Late payment of maintenance fees.
- Lack of transparency in fund management.
- Outdated budgets.
Solution:
- Implement digitalized accounting management systems.
- Apply collection measures to delinquent owners.
- Establish a reserve fund for unforeseen expenses.
Solutions:
1. Digitalization of Management.
The use of digital platforms allows for improved organization of information and communication with co-owners. Benefits:
- Automation of collections and payments.
- Quick access to legal and financial documents.
- Reduction of administrative errors.
2. Professionalization of Administration.
Having trained administrators is essential to ensure good management of the horizontal property. Recommendations:
- Hire experienced and certified managers.
- Encourage ongoing training.
- Delegate specific functions to property owners’ committees, except for sensitive matters or topics.
3. Legal compliance and specialized advice.
To avoid sanctions and legal conflicts, it is advisable to have specialized legal advice. Steps to follow:
- Periodically review legal documentation.
- Ensure that internal regulations are up to date and applicable.
- Consult lawyers in case of doubts about current regulations.
Horizontal property in Panama offers great benefits for the organization of communities, but it also involves legal and administrative challenges. Complying with current regulations, efficiently managing resources, and promoting communication between co-owners are key aspects to guarantee harmonious coexistence and effective administration.