Condominium Management Contract Mexico (Contrato de Administración de Condominio)

A Condominium Management Contract Mexico (Contrato de Administración de Condominio) is a service agreement governed by Article 41 of the Ley de Propiedad en Condominio de Inmuebles para el Distrito Federal (CDMX) — and equivalent articles in state-level condominium statutes — by which the Asamblea General de Condóminos formally appoints an Administrador del Condominio (condominium administrator) and defines the scope of services, legal authority, financial management obligations, reporting duties, fees, and termination conditions for that appointment. The contrato de administración de condominio formalises what the Ley de Propiedad en Condominio establishes as a mandatory governance role — every registered condominium in Mexico must have an Administrador duly appointed by the Asamblea General.

The Administrador del Condominio occupies a legally defined position in Mexican condominium law that is fundamentally different from a general property manager (administrador inmobiliario). The Administrador del Condominio derives authority not from the property owner's discretion but from the Asamblea General de Condóminos — the supreme governing body of all unit owners — and their powers and obligations are established by the Ley de Propiedad en Condominio rather than by commercial negotiation alone. Under Article 41 of the CDMX Ley de Propiedad en Condominio, the Administrador has statutory functions including: convening the Asamblea General; collecting maintenance fees (cuotas de mantenimiento); managing the condominium's common funds; contracting and supervising service providers (cleaning, security, gardening, maintenance); maintaining the condominium's common areas and infrastructure; and reporting to the Asamblea on all financial and operational matters.

The Administrador del Condominio may be a condómino (unit owner) who volunteers to serve the condominium community, typically without professional remuneration — this is common in smaller residential buildings. Alternatively, the Asamblea may appoint a professional property management company (empresa administradora de condominios) specialising in condominium management services, which enters into a formal contrato de administración de condominio setting out its professional obligations and fee structure. Large condominium developments in Mexico City (CDMX) and other major cities — particularly high-rise residential towers, commercial complexes, and mixed-use developments — routinely appoint professional management companies that manage dozens of buildings simultaneously using standardised systems for maintenance fee collection, accounting, vendor management, and regulatory compliance.

The legal relationship between the Asamblea General de Condóminos and the Administrador del Condominio in Mexico is one of mandato (mandate) under the Código Civil Federal Articles 2546–2604 — the Administrador acts as mandatario (agent) of the body of condóminos, with the powers expressly granted by the Asamblea resolution and the contrato de administración. The Administrador's authority is limited to the scope defined in the contract and the reglamento — they cannot incur expenditures or enter into contracts on behalf of the condominium beyond the authorised budget without Asamblea approval. The Administrador owes fiduciary duties of loyalty (lealtad) and diligence (diligencia) to the condóminos and is personally liable for fraud, negligence, or misappropriation of condominium funds under Articles 2565 and 2566 CCF.

Under the Ley de Propiedad en Condominio de Inmuebles para el Distrito Federal and equivalent state statutes, the Administrador del Condominio's term is typically one year, renewable by Asamblea resolution. The Administrador may be removed by the Asamblea at any time with or without cause — a fundamental principle reflecting the Asamblea's supreme authority over condominium governance. The contrato de administración de condominio must therefore align removal provisions with the statutory right of the Asamblea to revoke the appointment, and cannot contractually restrict this right in a manner inconsistent with the Ley de Propiedad en Condominio.

A Condominium Management Contract Mexico is needed whenever the Asamblea General de Condóminos appoints an Administrador del Condominio — whether a professional management company, a licensed property manager, or a condómino volunteer — to manage the day-to-day administration of the condominium.

The contract is required at the initial constitution of a new condominium development — the developer typically pre-appoints a management company for the first year of operation before the first Asamblea General takes place, and the contrato de administración formalises this appointment and the company's obligations during the transition from developer to owner governance.

The agreement is needed when an established condominium replaces an ineffective or dishonest administrator — the incoming professional company requires a written contract establishing the scope of their mandate, their financial authority, and the reporting obligations to the Asamblea before they can begin collecting fees and managing vendor contracts.

A formal contrato de administración is required when a condominium grows in complexity — for example, when a small residential building adds significant new amenities (pool, gym, concierge) that require professional operations management beyond what a volunteer condómino administrator can provide. The professional management company requires a written contract to define the expanded scope of services and the corresponding fee.

The agreement is also needed when a condominio's existing management arrangements are informal and undocumented — a common situation in older Mexican residential buildings — and the condóminos wish to formalise governance, improve financial transparency, and establish clear accountability for the Administrador.

Under Ley de Propiedad en Condominio art. 41 and the applicable state condominium legislation, the Administrador del Condominio's appointment must be documented in Asamblea minutes and, for professional management companies, formalised in a written contrato de administración de condominio defining authority, fees, and reporting obligations.

A valid Condominium Management Contract Mexico under Ley de Propiedad en Condominio Article 41 must contain the following essential elements:

Party Identification: Full legal name, RFC, and domicile of the condominium — identified by its escritura constitutiva number, RPP inscription folio, and address — represented by the President of the Comité de Administración (Comité de Vigilancia) authorised by Asamblea resolution; and full legal name, RFC, and domicile of the Administrador del Condominio — whether an individual (persona física) with CURP and professional licence (cédula profesional) if applicable, or a legal entity (persona moral) with RFC, Registro Público de Comercio inscription, and the representative's power of attorney reference. The Asamblea resolution authorising the appointment should be referenced by date and meeting number.

Appointment and Term: The date of appointment, the term of the contract (typically one year), and the renewal procedure — whether automatic (renovación automática) subject to asamblea confirmation or requiring explicit renewal vote. Under the Ley de Propiedad en Condominio, the Asamblea may remove the Administrador at any time by majority vote — any contractual restriction on this right is unenforceable against the statutory authority of the Asamblea.

Scope of Administrative Services: A detailed list of the Administrador's obligations — convening the Asamblea General with proper convocatoria at least annually; collecting monthly cuotas de mantenimiento from all condóminos; maintaining the condominium's bank accounts (cuentas bancarias del condominio) in the name of the condominium or its representative body; paying common services (electricity CFE, water SACMEX/SAPAMEX, security, cleaning, elevator maintenance) from collected funds; managing the fondo de reserva (reserve fund) for capital expenditures; contracting and supervising service providers (proveedores de servicios); maintaining the padrón de condóminos (owner registry); and managing correspondence with regulatory authorities including PROSOC, SEDEMA, and municipal authorities.

Financial Management and Reporting: The Administrador's obligation to maintain transparent accounting records (registros contables) for all income and expenditure; to provide monthly estado de cuenta (financial statement) to all condóminos showing collected fees, expenditures, and balances; to prepare an annual budget (presupuesto anual) for Asamblea approval before the start of each fiscal year; to maintain a separate fondo de reserva bank account with restricted access; and to submit to annual financial audit (auditoría financiera) by an independent contador público (CPA) approved by the Asamblea.

Fee Collection Authority: The Administrador's authority to collect cuotas de mantenimiento by the due dates approved by the Asamblea; to apply surcharges for late payment (recargo por mora) per the reglamento; and — where authorised by Asamblea resolution — to initiate collection proceedings (gestiones de cobranza) against delinquent condóminos through the applicable legal channels.

Administrator's Fees (Honorarios del Administrador): The monthly or annual fee payable to the Administrador — whether a fixed amount in MXN, a percentage of total collected maintenance fees, or a combination — subject to IVA at 16% if the Administrador is a legal entity or a VAT-registered individual providing professional services under LISR. Professional management companies in Mexico City typically charge 8% to 15% of collected monthly maintenance fees, or a fixed monthly amount of $15,000 to $50,000 MXN for medium to large condominiums depending on building size and complexity.

Termination and Transition: The grounds and procedure for contract termination — including termination for cause (incumplimiento grave) without penalty; termination by Asamblea vote (revocación del mandato) with reasonable notice; and termination by the Administrador with advance notice of 30 to 60 days. The Administrador's obligation upon termination to deliver all condominium records, bank account credentials, financial documentation, vendor contracts, and physical assets to the successor administrator within a defined handover period.

Regulatory Compliance Obligations: The Administrador must maintain the condominium's regulatory standing with all applicable government bodies — including the Procuraduría Social del Distrito Federal (PROSOC) for dispute resolution and administrative oversight under the Ley de Propiedad en Condominio; the Secretaría de Medio Ambiente del Gobierno de la Ciudad de México (SEDEMA) for environmental compliance; the CFE (Comisión Federal de Electricidad) and SACMEX (Sistema de Aguas de la Ciudad de México) for utility service contracts covering common areas; and the Secretaría del Trabajo y Previsión Social (STPS) for labour compliance regarding any building staff directly employed by the condominium. Where the condominium employs security guards, cleaning staff, or maintenance personnel, the Administrador must register them with IMSS under Article 15 of the Ley del Seguro Social and comply with the Ley Federal del Trabajo for employment documentation. Under Article 41 of the Ley de Propiedad en Condominio de Inmuebles, the Administrador bears primary responsibility for legal compliance — failure to maintain PROSOC registration, IMSS compliance, or CFE contract status exposes the Administrador to personal liability before the Tribunales Civiles of the applicable state.

Forms-legal.com provides this Condominium Management Contract Mexico template as a reference instrument. All amendments to the Administrador's appointment must be authorised by the Asamblea General de Condóminos. Consult a licenciado en derecho specialising in condominium law to verify compliance with the applicable Ley de Propiedad en Condominio in the relevant state.