The questions below offer a general framework on objecting to a risky building determination, the owners’ majority, contractor delay and securities. In a specific case, time limits, documents and the regulations in force are assessed separately.
Showing 1–4 of 4 questions
Can a risky building determination be objected to?
Yes; a special procedure is provided in Law No. 6306 and the implementing regulations.
The notification of the determination, the technical bases of the report and the relevant administrative objection periods must be followed carefully. The technical grounds of the objection should be supported with engineering data and sample or project records.
Is the unanimity of all owners required in urban transformation?
No. Unanimity is not required for every transaction in implementations under Law No. 6306; under the current regulation, an absolute majority of the co-owners in proportion to their shares is the basis for the implementation decisions provided for by the Law.
In implementations to be carried out on parcels containing risky structures, in risky areas and in reserve building areas under Law No. 6306 and the Implementing Regulation, the decision quorum is assessed according to the type of transaction. Under the current regulation, there are cases in which decisions on new implementations can be taken by an absolute majority of the co-owners in proportion to their shares. The sale process for the shares of owners who do not join the decision, the notification, the determination of value and the auction procedure are also subject to statutory conditions. For this reason, the former acceptance of 'two-thirds' or of 'unanimity' for every transaction should not be used; Law No. 6306 and the Implementing Regulation in force on the date of the transaction should be checked.
What can be done if the contractor delays the transformation project?
Claims may be assessed in line with the delay sanctions agreed in the contract and the provisions of the Code of Obligations.
The delivery schedule, the reason for the permit delay, claims of force majeure, formal notices and progress payments are examined. Claims for termination, contractual penalty, rent assistance or loss are separated according to the nature of the contract.
Is it necessary to obtain security in an urban transformation contract?
Securities that guarantee the contractor’s performance and arrangements for phased transfer of title deeds may reduce legal risks.
Bank letters of guarantee, mortgages, transfers tied to progress payments, insurance and delay conditions are assessed together with their legal validity. Instead of a general promise of security alone, the amount, the maturity and the procedure for converting it into cash should be clearly regulated.