Owner's Guide

A consorcio (consortium) is the legal entity formed by all co-owners of a horizontal property building. It's not a company in the traditional sense — it's a specific legal form created by Argentine law to manage buildings with multiple units under the horizontal property framework.

The consorcio is responsible for:

• Maintaining common areas (hallways, elevators, roof, facade)
• Hiring and managing building staff (encargado)
• Contracting building insurance
• Collecting monthly expenses (expensas) from all owners
• Organizing assemblies where owners vote on major decisions

The consorcio is represented by the building administrator (administrador), who acts on its behalf in day-to-day matters. Major decisions — like significant repairs, changing the administrator, or modifying the building regulations — require a vote at an owner assembly.

Expensas are calculated based on the total monthly costs of the building divided among all unit owners according to each unit's coefficient. The coefficient is a percentage assigned to each unit in the building's regulations, typically based on the unit's surface area relative to the building's total area.

For example, if your unit has a coefficient of 3.5% and the building's total monthly expenses are $500,000, your share would be $17,500.

• Ordinary expenses cover recurring costs: staff salaries, utilities for common areas, insurance, regular maintenance
• Extraordinary expenses cover non-recurring costs: major repairs, building improvements, emergency works

The building administrator prepares a monthly expense statement (liquidación de expensas) that itemizes all costs and shows each owner's proportional share. Understanding this document is an important part of being an active co-owner.

In Argentina, building administrators (administradores de consorcios) in the City of Buenos Aires are required to be registered with SUTERH or the corresponding regulatory body. In Buenos Aires Province, requirements may differ. Verifying registration is a basic first step.

Beyond registration, consider:

• Experience managing buildings of similar size and complexity
• Transparency in accounting — are expense statements clear and detailed?
• Responsiveness to owner inquiries and building emergencies
• Quality of the monthly expense reports they provide
• References from other buildings they currently manage
• Their process for handling contractor selection and supervision

The administrator works for the consorcio — meaning for all co-owners collectively. Their performance should be evaluated regularly, and owners have the right to request detailed accounts of all income and expenditure.

To sell a unit in a horizontal property building in Argentina, several elements are typically required. The process generally follows this sequence:

• Have the unit properly registered in your name (escrituración completed)
• Obtain a certificate of no debt for expensas (libre deuda de expensas) from the administrator
• Ensure all property taxes (ABL/ARBA) are up to date
• Agree on a price and sign a reservation (reserva) with the buyer
• Sign a preliminary purchase contract (boleto de compraventa)
• Complete the final deed transfer (escritura) before a notary

If you plan to sell through a real estate agent (corredor inmobiliario), they will guide you through the process. The notary handles the legal formalities of the deed transfer.

Owning a residential unit in Argentina involves several potential tax obligations. The main ones to be aware of:

• Property tax: In CABA, this is the ABL (Alumbrado, Barrido y Limpieza). In Buenos Aires Province, it's administered by ARBA. Both are annual taxes on the property's fiscal value, typically paid in installments.
• Bienes Personales: Real estate is a declarable asset for Argentine residents. If the total value of your assets exceeds the non-taxable minimum, you may owe Bienes Personales tax.
• Income tax on rental income: If you rent your unit, rental income is subject to income tax (Impuesto a las Ganancias). The applicable treatment depends on whether you're a registered taxpayer and the rental arrangement.
• Transfer tax (ITI): When selling, a transfer tax may apply. The rate and applicability depend on whether the sale qualifies as a capital gain or falls under other regimes.

As a co-owner in a horizontal property building, Argentine law grants you several fundamental rights:

• The right to use your private unit and the common areas in accordance with the building regulations
• The right to participate in and vote at owner assemblies
• The right to request and review the building's accounts and financial records
• The right to be informed about any significant decisions affecting the building
• The right to challenge decisions made in violation of the building regulations or applicable law
• The right to propose items for discussion at owner assemblies

Alongside these rights, co-owners also have obligations — primarily the timely payment of expensas and compliance with the building's regulations regarding use of private and common areas.