Nicaragua’s urban growth has fueled the rise of residential buildings, shopping centers, and gated communities. More recently, we have also seen new multipurpose tourism projects emerging along the coast. These types of developments require a legal framework to regulate coexistence, the use of common areas, and the management of shared property. This framework is provided by the horizontal property regime, mainly regulated by Decree No. 1909, Law on the Horizontal Property Regime (1971), which remains in force, and complemented by the Civil Code and Law No. 698, General Law on Public Registries (2009), which modernized registration procedures.
In Nicaragua, condominiums are established under the horizontal property regime, which creates a special form of co-ownership that divides a property into:
- Exclusive property units: apartments, houses, or commercial spaces, each with its own independent property rights.
- Common property areas: such as parking lots, hallways, gardens, and infrastructure, which are indivisible.
This means that each owner holds a title to their individual unit and, at the same time, an undivided share in the common areas.
To establish a condominium regime in Nicaragua, the following are required:
- Constitutive title: A public deed granted by the property owner describing the units, common areas, ownership shares, and condominium regulations. This must include plans approved by the relevant authority.
- Registration in the Property Registry: Without registration, separate registry folios cannot be created for each unit, nor can they be legally transferred.
- Condominium regulations: A document that establishes the rules for administration, the rights and obligations of co-owners, maintenance fees, rules of coexistence, and penalties for non-compliance. he main rights and obligations are as follows:
- Rights: Co-owners are entitled to the exclusive use of their unit, proportional access to common areas, participation in assemblies and administrative bodies, and voting rights based on their ownership share or as established in the Condominium Regulations.
- Obligations: Co-owners must contribute to common expenses, comply with rules of coexistence, allow access for necessary repairs, and avoid altering the structure or purpose of the property.
The administration of a condominium regime operates through:
- General assembly of co-owners: The highest governing body, which approves budgets, fees, and internal rules. Its resolutions are recorded in an official minute book.
- Administrator: A co-owner or an appointed third party who legally represents the condominium, carries out assembly decisions, and oversees maintenance.
In practice, many condominiums face challenges such as:
- The sale of projects before the condominium regime has been formally registered.
- Regulations that are incomplete or not registered, creating legal uncertainty.
- Low compliance with payment of maintenance fees, affecting financial sustainability.
- Conflicts between co-owners and administrators.
- Legal obstacles to enforcing collection of unpaid maintenance fees, even though these constitute real obligations.
The condominium regime is a key tool for urban and tourism development in Nicaragua, but its success depends on proper legal registration, professional administration, and compliance with obligations by co-owners. For developers and buyers, it is essential to verify that the regime is properly registered in accordance with Decree No. 1909 and supported by clear regulations that ensure legal certainty and harmonious coexistence.