Condominio Residencial Vertical Azul del Mar

Condominium & Administration Bylaws (Complete English Translation)

Introduction

This is the complete English translation of the Condominium and Administration Bylaws for Condominio Residencial Vertical Azul del Mar, based on the Spanish text recorded in the National Registry of Costa Rica. This translation is written in clean, modern legal English for clarity while maintaining the meaning and force of the original document.

CHAPTER I — GENERAL PROVISIONS

Article 1 — Name

The condominium is named CONDOMINIO RESIDENCIAL VERTICAL AZUL DEL MAR, replacing all previous names.

Article 2 — Scope of Application

These Bylaws regulate:

• The structure and administration of the condominium.
• Remodeling, construction, or improvements made by owners or the Administration.
• Relations among owners, and between owners, the Administration, and third parties.

These rules apply to all owners, co-owners, tenants, subtenants, guests, occupants, and anyone who uses a unit or common area.

Article 3 — Definitions

Administration / Administrator: The entity appointed to manage the condominium.
Calendar Year: January 1 to December 31.
Common Areas: All jointly owned areas essential for access, safety, sanitation, recreation, structure, and services.
Restricted-Use Common Areas: Common areas assigned exclusively to specific units.
Assembly of Owners: The supreme governing body.
Owner: Any person or entity holding registered title to a unit.
Maintenance Fee: The amount each owner pays for common expenses.
Common Expenses: All expenses required for administration, operation, and maintenance.
Subsidiary Property: Each independent unit.
Developer: Three-One Hundred One–Eight Hundred Seven Thousand Five Hundred Thirty-Five S.A.
Regulation / Bylaws: This document.

Article 4 — Structure of the Bylaws

These Bylaws consist of:

1. Condominium Bylaws
2. Administration Bylaws

CHAPTER II — ADMINISTRATION BYLAWS

Article 5 — Governing Bodies

a) The Assembly of Owners
b) The Administration

Article 6 — The Assembly of Owners

The Assembly is the supreme authority. Only owners who are current on maintenance fees may participate and vote.

Article 7 — Ordinary and Extraordinary Assemblies

• Ordinary Assembly: once a year, within the first three months.
• Extraordinary Assembly: when called by the Administrator or requested by the owners.

Article 8 — Notice of Assembly

The Administrator issues the notice, which must include:

• Agenda
• Date
• Time
• Place
• Second call option

Minimum notice period: 7 calendar days.

Article 9 — Quorum

• First call: at least two-thirds of the total value.
• Second call: any number of owners present.
• Minimum one hour between calls.

Article 10 — Powers of the Ordinary Assembly

• Approve or reject the Administrator’s annual report.
• Approve or reject the annual budget and fees.
• Appoint, reappoint, or remove the Administrator.
• Authorize improvements to common areas.
• Establish the Administrator’s compensation.
• Authorize acquisition or expansion of common areas.

Article 11 — Assembly Procedures

• Sessions are presided over by a President and Secretary elected ad hoc.
• Minutes must be recorded in the Assembly Minute Book.
• Owners must sign an attendance sheet.
• Representation through authenticated powers of attorney is permitted.

Article 12 — Voting Rules

Unanimous vote required for:

• Changing the overall purpose of the condominium.
• Renouncing the condominium property regime.
• Encumbering or selling the condominium as a whole.

Two-thirds vote required for:

• Changing the assigned use of a unit.
• Adding floors or basements.
• Acquiring or changing use of common property.
• Approving reconstruction.
• Modifying proportional areas.
• Amending these Bylaws or the constitutive deed.

Simple majority required for:

• Necessary improvements.
• Appointing the Administrator.
• Approving internal regulations.

Article 13 — Appointment of the Administrator

The Administrator is appointed by the Assembly of Owners.

Article 14 — Term and Removal of the Administrator

• The Administrator serves a 20-year term.
• Removal requires a two-thirds vote and proven cause.
• The Administrator may be an individual or a company.

Article 15 — Administrator’s Compensation

A yearly compensation is set by the Assembly and paid through maintenance fees.

Article 16 — Administrator’s Powers

The Administrator:

• Is the legal representative of the condominium.
• Has broad legal authority (“Generalísimo” powers).
• Requires Assembly approval for major actions such as selling or leasing common assets or borrowing money.
• May establish easements for public utilities without Assembly approval.

Article 17 — Administrator’s Obligations

The Administrator must:

• Enforce these Bylaws.
• Apply sanctions.
• Execute Assembly decisions.
• Call Assemblies.
• Provide annual reports and budgets.
• Suspend services for nonpayment (with prior notice).
• Collect fees, issue receipts, and certify debts.
• Pay common expenses.
• Order repairs and maintenance.
• Supervise staff and contractors.
• Maintain the Minute Book, Cash Book, and Owner Registry.
• Control master keys and security access.
• Manage bank accounts and reserve funds.
• Represent the sub-condominium at the primary condominium (Club de Golf Los Delfines).

CHAPTER III — CONDOMINIUM BYLAWS

Article 18 — Composition

The condominium consists of private units and common areas as defined in the plans and constitutive deed.

Article 19 — Owners

Owners may use, sell, or encumber their units, subject to legal and regulatory restrictions.

Transfers must be reported to the Administrator within 15 days. Buyers are responsible for any unpaid debt on the unit.

Article 20 — Co-Ownership Percentages

Each unit’s ownership percentage determines its rights and obligations in common property and expenses.

Article 21 — Prohibition on Altering Units

Owners may not:

• Divide,
• Merge, or
• Combine
  units. This is strictly prohibited.

Article 22 — Common Property

Owners have rights over all common areas, including structural elements, utilities, recreational facilities, and service installations.

Article 23 — Maintenance Obligations

Owners must contribute to:

• Common expenses
• Reserve funds
• Insurance
• Taxes
• Fees owed to the primary condominium

Article 24 — Nonpayment

Nonpayment results in:

• Written notice
• A 3% monthly surcharge
• Possible legal collection
• Application of sanctions for repeated violations

Article 25 — Common Expenses

Common expenses include taxes, insurance, utilities, services, repairs, reserve funds, security, administration, and fees owed to the primary condominium.

Article 26 — Insurance

Common buildings must remain insured against fire, earthquake, and other disasters. Additional insurance may be contracted as needed.

Article 27 — Security Services

The Administrator may contract security services with Assembly approval.

Article 28 — Patios and Green Areas

Owners with assigned patios must maintain them and may not:

• Plant large trees
• Build permanent structures
• Install pools
• Use smoke-producing BBQ units

Violations result in fines and removal of unauthorized constructions.

Article 29 — Property Tax

Owners are responsible for paying their own municipal property taxes.

Article 30 — Owner Obligations

Owners must:

• Follow the Bylaws and Administrator's instructions.
• Allow access for service personnel.
• Maintain their units.
• Pay for damages they cause.
• Avoid actions harming common property.
• Drive under 10 km/h.
• Avoid exterior alterations, extra A/C units, and hanging clothes outside.

Article 31 — Prohibitions

Prohibited activities include:

• Illegal uses
• Storing hazardous materials
• Placing items in common areas
• Exterior signs, banners, or decorations without approval
• Outdoor cooking except in designated areas
• Loud noise
• Exterior structural modifications
• Throwing objects
• Unauthorized antennas or A/C units
• Blocking access routes
• Sports in undesignated areas
• Washing vehicles in common areas
• Giving keys or access devices to unauthorized persons
• Parking in prohibited zones
• Keeping prohibited pets
• Improper waste disposal
• Violating pool and clubhouse rules

Article 32 — Owner Rights

Owners have the right to:

• Participate in Assemblies
• Transfer their unit
• Modify the interior of their unit
• Access the condominium at any time
• Use all interior components of their unit
• Contract private services that do not harm others

Article 33 — Pets

Owners may keep one domestic animal, with restrictions:

• No animals over 15 kg
• No dangerous breeds
• No continuous barking
• Violations may result in fines or required removal of the animal

Article 34 — Access to Units

Owners must permit access for emergencies or necessary repairs.

Article 35 — Public Utilities

Each unit has its own electric meter. Water is billed through a master meter with internal distribution based on consumption.

Article 36 — Restricted-Use Common Areas

Patios and gardens assigned to ground-floor units are for exclusive use of those units.

Article 37 — Use of Amenities

Rules for the pool, playground, and clubhouse are issued by the Administrator. Exclusive reservations require written notice at least 15 days in advance.

Article 38 — Visitor Parking

Visitor parking is restricted to 24 hours. Violations may result in towing.

CHAPTER IV — DISPUTE RESOLUTION & SANCTIONS

Article 39 — Dispute Resolution

Disputes must first be submitted to the Administrator, who must resolve within 5 business days. Judicial action may be taken afterward.

Article 40 — Classification of Faults

Faults may result in:

1. Written warning
2. Fine
3. Eviction (Assembly decision)

Article 41 — Liability

Owners are responsible for all actions of people associated with their unit and must repair any damages caused.

Article 42 — Disciplinary Authorities

The Administrator and the Assembly are the disciplinary bodies. Only the Assembly may order eviction.

Article 43 — Disciplinary Procedure

1. Written notice
2. 10 business days to correct or object
3. Hearing
4. Administrator’s decision within 5 business days
5. Payment of fines
6. Late penalties apply
7. Administrator may perform corrective work at owner’s cost

Article 44 — Appeals

Owners may file:

• Motion for reconsideration (Administrator)
• Appeal (Assembly of Owners)

The Assembly must meet within 45 days.

Article 45 — Sanctions and Fines

Sanctions fall into three levels:

• Minor faults (written warning)
• Medium faults (¼ to 2 base salaries)
• Serious faults (3 to 6 base salaries, possible eviction)

Fines accumulate monthly until the violation is corrected.

FINAL ARTICLES

Article 46 — Initial Maintenance Fee

The initial maintenance fee is USD $120 per month for all units once acquired by their final buyers.

Article 47 — Notifications

Owners must register an email, fax, or cell phone number for official notifications. If unavailable, written notices may be left at the unit.

ADMINISTRATOR APPOINTMENT

The designated Administrator is:

CCDGL Management S.R.L.
Corporate ID: 3-102-848565
Represented by: Andrés Enrique Boza Segura (Apoderado Generalísimo)
Term: 20 years

The Administrator accepts the appointment.