What Is The Horizontal Property Law?

Horizontal property law is the regulation that regulates communities of owners and establishes their obligations and rights. Specifically, the rule, which dates back to 1960, orders horizontal property that the Civil Code defines in its article 396: “the different floors and premises of a structure or the areas within them that are vulnerable to independent use due to having their exit to an element. Common to that or the public road, may be the subject of separate property, which will inherently have a right of co-ownership over the common elements of the building.”

What are its objectives, and what topics does it address?

Horizontal property law aims to regulate the relationships between a building’s co-owners, establishing their rights and duties and the regime of action of the communities of owners.

The standard addresses aspects such as granting the constitutive title of the property, extinction of horizontal property, the establishment of coexistence rules, the powers of the owners’ meeting, community positions, meeting holding, the majority necessary to adopt agreements, or the functions of the property manager.

Private and common elements in the horizontal property regime

The essential characteristic of horizontal property is that each owner is the owner of a private part of the property and, at the same time, is the co-owner of the common elements of the building.

Thus, each owner of a flat or premises in a building under a condominium regime is responsible for:

On a private basis: the apartment or premises of which you are the owner, with the annexed spaces that you use exclusively (such as a storage room, for example). As defined by the horizontal property law, it corresponds to “the singular and exclusive right of ownership over a space that is sufficiently delimited and susceptible to independent use, with the architectural elements and facilities of all kinds, apparent or not, that are included within its limits. And exclusively serve the owner and the annexes that have been expressly indicated in the title, even if they are located outside the delimited space.

Under co-ownership with the rest of the owners of the flats or premises: the common elements of the building. Included in this concept are the floor, flight, foundations and roofs, structural components, facades, portals, stairs, goals, patios, elevator enclosures, conduits and pipelines, collective antennas, and easements, among other elements.

Depending on the characteristics of the apartment or premises he owns, each owner is assigned a participation fee relative to the total value of the property, which will determine his participation in the burdens and benefits generated by the property.

Leading figures in horizontal property law

The horizontal property law refers to the governing bodies of the community of owners: the Board of owners, the president (and, where appropriate, vice president), the secretary, and the administrator. For their role, we highlight two prominent figures:

Owners’ Board: the body that represents all the owners of the apartments and premises of the property. Among its responsibilities are:

  • Appoint and remove the president, vice president, secretary, and administrator,
  • Approve Budgets and Accounts,
  • Approve the execution of works,
  • Approve or reform the community statutes,
  • Agree on the rules of the internal regime and
  • Know and decide on other matters of general interest to the community.

 Administrator: This position can be held by an owner (whether or not compatible with that of a secretary) or delegated to a natural or legal person who can legally assume these functions (property administrators). The administrator will be in charge of:

  • Ensure the excellent condition of the building,
  • Prepare the foreseeable expense plan,
  • Take care of the maintenance and conservation of the property,
  • Execute the Board’s agreements related to the execution of works and
  • All other powers conferred by the Board.

The Nature And Importance of Property Rights

Now, the right of property, a topic of particular importance in the present case, has unique characteristics in the field of public economic law. For Gaspar Arino, the necessary budget for financial freedom and, therefore, for political freedom is property since only to that extent can the power to order one’s life be exercised in accordance with one’s desires or ideals, which It would be in any case the definition of freedom that we must handle. In the subjective sphere, then, property allows the exercise of individual freedom in all its facets.

 On the other hand, in the objective area, property rights and their efficient protection by the legal system create incentives for the efficient and responsible use of resources in the context of their scarcity in the economic system. Appropriate incentives are created by distributing among members of society mutually exclusive rights to use particular resources, rights that can also be freely transferred.

The exclusivity of property rights

 In this sense, exclusivity implies that the right of property operates erga omnes; that is, it can be opposed to everyone and excludes every other individual from its scope. This also means that no other property right over the same asset is allowed. We are talking about co-ownership, which is a somewhat different situation in which several exclusive owners can oppose their rights to all the others. It goes without saying that co-ownership is an inefficient legal situation and that the legal norm establishes mechanisms to be able to conclude it.

It must also be taken into account that the creation of exclusive property rights is not sufficient for the efficient use of resources in the economy since property rights (and, in general, property rights) must be transferable, given that efficiency requires a mechanism that can precisely induce the owner to transfer his property in the case in which the use he gives it is not the most efficient.

 In this order of ideas, the exclusivity of the property right ensures that it is used responsibly by its owners. Otherwise, the good does not generate said incentive, and its depletion would occur. Public goods, consequently, create distortions to the functioning of the economic system and must be reduced sufficiently to allow public needs. At a given moment, the market will not be able to offer public goods in sufficient numbers, which in turn implies that not enough resources will be allocated to produce them.

In particular, public domain assets are characterized by being outside the market and not being susceptible to being transferred, as they have been assigned to a public use or a public service. For this reason, they precisely generate a set of distortions that can cause complications. The goods above, consequently, are outside of commerce. For this reason, public domain assets are inalienable and imprescriptible, as indicated by Article 73 of the constitutional norm.

Protection of Property Rights

Property is, therefore, untouchable, and the only way someone can be deprived of it is by a legal sentence. This prohibition is fundamentally directed at the State. Property has then been considered a preferred right within the constitutional plexus of personal rights in national and comparative law.

 According to what we have just pointed out, the repeated violation of people’s property rights would necessarily mean that said social function of property is distorted and that scarce goods are not allocated to their most efficient uses. When this happens, the entire community is harmed. In this order of ideas, it is evident that property, as a fundamental right, must be protected directly and immediately through appropriate and effective mechanisms, given that, in addition, said right constitutes a mechanism for the protection of individual freedom.

 As a result, the consideration that the right to property must give way to other fundamental rights, considered more important or with respect to social or collective goods – thesis handled by a particular sector of comparative doctrine   – must be left aside to the assume, as we are doing, that the right to property is, within the legal system, a fundamental right, not only of equal rank with all others but also of unusual importance for the functioning of the political and economic system of any society.

Uncovering Insights into the YNH Property Scandal: Key Figures, Financial Repercussions, and Latest Updates

The YNH property scandal has brought to light several key figures whose actions and decisions have significantly impacted the real estate landscape. Among the primary individuals involved is Johnathan Miller, who served as the CEO of YNH Properties. With a background in finance and extensive experience in property development, Miller played a crucial role in orchestrating the fraudulent activities that led to the scandal. His executive decisions, often cloaked in legitimate business operations, masked the financial irregularities that eventually surfaced. Miller’s deep connections within the industry facilitated the concealment of these activities, but they ultimately led to his ousting and ongoing legal battles.

Another prominent figure is Samantha Lee, the Chief Financial Officer (CFO) of YNH Properties. Lee’s expertise in accounting and financial management was instrumental in manipulating the company’s financial statements. Her actions, which included falsifying revenue figures and misrepresenting asset values, were central to the deception that misled investors and stakeholders. Lee’s professional reputation has been severely tarnished, and she now faces multiple charges of financial misconduct and fraud.

In addition to Miller and Lee, the scandal also implicates several board members of YNH Properties, such as Robert Thompson and Linda Rivera. These individuals, with extensive backgrounds in corporate governance and real estate investment, were found to have either directly participated in or willfully ignored the fraudulent activities. Their failure to uphold fiduciary responsibilities has resulted in substantial legal consequences, including fines and potential imprisonment.

The scandal also highlights the involvement of external entities, such as auditing firms and financial consultants, who played a role in validating the manipulated financial records. These entities, including the well-known auditing firm Gregson & Co., are being scrutinized for their lack of due diligence and potential complicity in the scandal. The fallout has led to a broader examination of industry practices and regulatory frameworks.

Understanding the roles and connections of these key figures is essential to comprehending the full scope of the YNH property scandal. Their actions not only reveal individual culpability but also underscore the systemic vulnerabilities within the property industry that allowed such a scandal to unfold. As investigations continue, the legal and professional repercussions faced by these individuals and entities will likely reshape the landscape of corporate governance and financial accountability in real estate.

Financial Repercussions and Latest Updates on the YNH Property Scandal

The YNH property scandal has had a profound financial impact on various stakeholders, including investors, property buyers, and financial institutions. The monetary losses incurred are significant, with estimates suggesting that investors alone have lost millions due to fraudulent activities and mismanagement. Property buyers who had invested their savings into YNH projects are now facing uncertainty and potential losses, as many properties remain incomplete or embroiled in legal battles. Financial institutions that extended credit to YNH are also grappling with bad debts, which have adversely affected their balance sheets and overall financial stability.

The broader economic implications are equally concerning. The scandal has shaken investor confidence in the real estate sector, resulting in decreased investment activities and a slowdown in property transactions. This decline has had a ripple effect on related industries, such as construction and home furnishings, which rely heavily on a robust property market. Additionally, the scandal has prompted a reevaluation of regulatory frameworks governing the real estate sector, with calls for stricter oversight and more transparent practices to prevent future occurrences.

Recent updates on the YNH property scandal indicate that ongoing investigations are uncovering more layers of the fraudulent scheme. Legal proceedings have commenced, with several high-ranking officials and key figures involved in the scandal facing charges of embezzlement, fraud, and breach of trust. Regulatory bodies have responded by implementing new measures aimed at enhancing transparency and accountability within the real estate industry. These measures include stricter due diligence requirements, enhanced disclosure norms, and more rigorous monitoring of real estate transactions.

As the situation continues to evolve, stakeholders are advised to stay informed about the latest developments. The outcomes of the ongoing investigations and legal proceedings will play a crucial role in shaping the future landscape of the real estate sector. By understanding the financial repercussions and keeping abreast of the latest updates, stakeholders can better navigate the challenges posed by the YNH property scandal.

Uncovering Insights into the YNH Property Scandal: Key Figures, Financial Repercussions, and Latest Updates

Key Figures Involved in the YNH Property Scandal

The YNH property scandal has brought to light several key figures whose actions and decisions have significantly shaped the course of events. At the forefront are the top executives of YNH, most notably, CEO Johnathan Reed and CFO Emily Walker. Reed, who has been with the company for over a decade, played a pivotal role in YNH’s aggressive expansion strategies. His previous track record, marked by rapid growth and high-risk ventures, positioned him as a formidable leader in the real estate sector. However, these same qualities appear to have contributed to the current crisis.

Emily Walker, the Chief Financial Officer, was responsible for overseeing the financial health of YNH. Her involvement in the scandal primarily revolves around the alleged manipulation of financial statements to present a more favorable outlook to investors and regulators. With a background in corporate finance and a history of working with major financial institutions, Walker’s expertise was supposed to ensure fiscal prudence. Instead, it has now come under scrutiny for potential ethical breaches.

Government officials have also been implicated, particularly in relation to regulatory oversights and potential conflicts of interest. Among them, Deputy Minister of Urban Development, Richard Hayes, stands out. Hayes, who has been in office for over five years, was responsible for approving several key projects spearheaded by YNH. Investigations are currently probing into possible connections between Hayes and YNH executives, raising questions about the integrity of the approval processes.

External parties, such as investment firms and auditing companies, have not been spared either. Notably, Falcon Investments, a major stakeholder in YNH, is under investigation for possible collusion in hiding financial discrepancies. The auditing firm, KLM Auditors, which was tasked with reviewing YNH’s financial statements, is also facing allegations of negligence and potential complicity in the scandal.

The relationships and connections among these individuals and entities have undoubtedly influenced the scandal’s development. For instance, long-standing personal and professional ties between Reed and Hayes have added layers of complexity to the unfolding investigation. As more details emerge, these connections are likely to provide deeper insights into the mechanisms that enabled such a widespread and impactful scandal.

Financial Repercussions and Latest Updates on the YNH Property Scandal

The YNH property scandal has had significant financial repercussions, both immediate and long-term, affecting not only the company but also its stakeholders and the broader market. In the immediate aftermath, YNH incurred substantial financial losses, estimated to be in the hundreds of millions. These losses stem from a combination of legal fees, regulatory fines, and a sharp decline in property values. The scandal prompted a swift reaction from the stock market, where YNH’s share prices plummeted by nearly 40% within weeks of the initial revelations.

Stakeholders, including investors and employees, have faced considerable financial strain. Investors saw a dramatic reduction in the value of their holdings, while employees grappled with job insecurity and potential layoffs as the company struggled to stabilize. In response to the financial turmoil, YNH announced a series of cost-cutting measures, including asset divestitures and restructuring efforts aimed at regaining investor confidence and restoring financial health.

Regulatory bodies have also taken action, imposing substantial fines on YNH for violations of financial regulations and property laws. These fines are expected to exceed $200 million, further exacerbating the company’s financial woes. Additionally, ongoing legal battles are anticipated to result in further financial penalties and settlements, prolonging the economic impact of the scandal.

The timeline of events in the YNH property scandal has been marked by a series of rapid developments. Following the initial exposé, a cascade of investigations was launched by regulatory authorities, leading to multiple high-profile resignations within the company’s executive team. These resignations have been accompanied by public statements from the involved parties, offering varying degrees of acknowledgment and defense regarding their roles in the scandal.

In terms of recent updates, the scandal continues to unfold. Ongoing investigations have revealed further discrepancies in financial reporting and property valuations, suggesting that the full extent of the malpractice may yet to be uncovered. Recent news reports indicate that several former executives are facing criminal charges, which could result in significant prison terms if convicted. Meanwhile, YNH has issued a series of statements pledging increased transparency and cooperation with regulatory bodies in an effort to rebuild public trust.

The future implications of the YNH property scandal remain uncertain. While the company is actively working to mitigate the damage, the long-term financial impact on stakeholders and the market is likely to be profound. Investors and employees alike are advised to stay informed about ongoing developments, as the situation continues to evolve.