Introduction
In Bolivia, apartment buildings, gated communities and shopping centers are organized under the horizontal property regime (condominium ownership). Each owner holds exclusive title to their unit and, at the same time, is a co-owner of the common areas: the land, the structure, stairways, elevators and general installations.
Horizontal property is not a type of real estate but a set of rules. It defines how a building or a plot of land is divided, what belongs to each owner, what belongs to everyone, and how common expenses are managed and paid.
This article, first published in 2018 and updated in October 2026, summarizes the laws in force, the steps to establish a building under horizontal property, how common charges (expensas) work, and which documents to review before buying an apartment.
Applicable law
The special statute is still the Horizontal Property Law of 30 December 1949, complemented by the Civil Code, the Civil Procedure Code and the regulations of each municipality and departmental government.
| Law | What it governs |
|---|---|
| Horizontal Property Law of 30 December 1949 | Common property, common charges, co-ownership bylaws, owners' meeting, administrator and fire insurance |
| Civil Code, arts. 184 to 200 | Use of units, common areas, each co-owner's share, allocation of expenses, bylaws, administrator, owners' meeting and pre-horizontal property |
| Civil Procedure Code (Law 439), art. 379, item 5 | Credit documents for common charges are enforceable titles |
| Real Rights Registration Law of 15 November 1887 and Supreme Decree 27957 | Registration of the building and of each unit with its own folio real |
| Family Code (Law 603), art. 192 | Consent of both spouses to sell marital property |
| Departmental laws on legal personality | Recognition of the owners' association by the departmental government |
| Municipal land-use and building regulations | Approval of plans and of the horizontal property division by each municipality |
In 2024, Supreme Decree 5143 was issued to modernize the Real Rights Registry, but it was repealed by Supreme Decree 5156 of 14 May 2024. Supreme Decree 27957 remains in force.
How a building is established under horizontal property
A building is placed under horizontal property in three stages: municipal approval, public deed and registration with the Real Rights Registry (Derechos Reales). At the end, each apartment, office, parking space or storage unit has its own folio real.
- Municipal approval. The approved building plans, the plans and division table of the units, and the land documents are submitted. The municipality issues a resolution approving the horizontal property division. The type of resolution, requirements and timeframes vary by municipality and by date of approval.
- Public deed before a notary. The horizontal property division and the building's internal bylaws are formalized. Under art. 194 of the Civil Code, the bylaws must be recorded in a public deed.
- Registration with Derechos Reales. The building is recorded in the folio real of the land, and then a separate folio real is opened for each unit, with its percentage of the land and common areas.
- Cadastral and tax registration. Each unit is registered in the municipal cadastre so that property tax is paid separately.
Private units, common areas and decision-making
Each owner may freely use, sell or mortgage their unit, but their share of the common areas always goes with it: it cannot be sold or encumbered separately (art. 192 of the Civil Code). That share is proportional to the value of the unit (art. 188), and votes and expenses follow the same proportion.
Unless the title provides otherwise, the land, foundations, exterior and structural walls, roof, stairways, elevators, hallways and general installations are common (art. 187 of the Civil Code). Common areas cannot be partitioned (art. 190).
| Decision | Who decides | Legal basis |
|---|---|---|
| Valid quorum | Owners representing at least 3/4 of the building's value | Art. 197 Civil Code; art. 15 Law of 1949 |
| Ordinary resolutions and budget | Majority representing at least 2/3 of the value | Art. 197 Civil Code |
| Appointing or removing the administrator | Majority of 2/3 of the value; one-year renewable term | Art. 195 Civil Code; art. 14 Law of 1949 |
| Voluntary improvements or very costly extraordinary expenses | Unanimity | Art. 189 Civil Code; art. 15 Law of 1949 |
The administrator carries out the decisions of the owners' meeting, looks after the common areas, collects common charges and represents the owners in administrative matters (art. 196). If the meeting does not appoint one, any owner may ask a judge to do so.
The 1949 Law also requires the building to be insured against fire (art. 19), unless the municipality declares it fireproof, and holds the administrator liable if the insurance is not taken out.
Common charges and collection from defaulting owners
Every co-owner must pay common charges in proportion to the value of their unit, whether or not they use the common areas; not even by waiving them can they stop paying (art. 188 of the Civil Code). Expenses that benefit some owners more than others may be allocated according to use (art. 191).
Common-charge debt follows the unit: whoever buys an apartment is also liable for the previous owner's unpaid charges (art. 5 of the 1949 Law). For this reason, before buying, request a certificate showing charges are paid up, signed by the administrator.
Collection has a fast track. Art. 379, item 5 of the Civil Procedure Code recognizes credit documents for common charges as enforceable titles, and the 1949 Law gives enforceable status to the minutes of the owners' meeting approving the expenses, signed by the administrator (art. 16). With these documents, an executive (summary collection) proceeding can be filed without going through ordinary litigation.
Legal personality of the owners' association
It is advisable for co-owners to form an association and obtain legal personality from the departmental government. With it, they can open bank accounts in the building's name, sign contracts with security or maintenance companies, hire staff and act in court more easily.
The association is a non-profit entity: it is neither a company nor a partnership. Requirements are set by each departmental government through its departmental law; in Santa Cruz, for example, Departmental Law No. 50 applies.
Documents to review before buying an apartment
In addition to the requirements of any purchase, a property under horizontal property requires reviewing the documents of the whole building and those of the unit.
For the building
- Title deed of the land on which the building was built, in the name of the seller or the developer.
- Municipal resolution approving the horizontal property division and approved building plans.
- Public deed of horizontal property division, registered with Derechos Reales.
- Public deed of the internal bylaws of the building or condominium.
- Cadastral registration of the building.
For the unit you are buying
- Separate folio real for the apartment and, separately, for the parking space and storage unit, if any.
- Up-to-date Derechos Reales report on liens, mortgages or preventive annotations.
- Approved plans of the apartment, parking space and storage unit.
- Municipal tax certificate or statement showing property taxes are paid up.
- Certificate showing common charges are paid up, signed by the administrator, because the debt passes to the new owner.
- Valid ID card of the seller and, if the property is marital property, of their spouse, who must also sign (art. 192 of the Family Code).
Once these documents have been reviewed, the purchase agreement (minuta) is drafted, formalized as a public deed before a notary, the municipal transfer tax is paid, and the property is registered with Derechos Reales in the buyer's name. It is advisable to have a lawyer review everything before signing or handing over any money.
Frequently asked questions
Is the 1949 Horizontal Property Law still in force?
Yes. As of October 2026, no new national horizontal property law has been enacted. The Law of 30 December 1949 applies together with arts. 184 to 200 of the Civil Code.
Can I stop paying common charges if I don't use the pool or the elevator?
No. The obligation exists even if you do not use the common areas or waive them (art. 188 of the Civil Code). What you can do is ask that an expense benefiting only some owners be allocated according to use (art. 191).
How are overdue common charges collected?
Through an executive proceeding, which is faster than ordinary litigation. Credit documents for common charges and the minutes of the owners' meeting approving the expenses, signed by the administrator, serve as title.
If I buy an apartment with unpaid common charges, who pays them?
The new owner, because the debt follows the unit. That is why you should require a certificate showing charges are paid up before signing.
Is legal personality mandatory for the building?
It is not required for the building to exist under horizontal property, but it is highly advisable. Without it, the association cannot open accounts in its own name or contract easily.
Can I change the use of my apartment, for example to an office?
Only if the building's bylaws allow it. Each unit must be used for the purpose set by the bylaws (art. 186 of the Civil Code).
What happens if the building has no administrator?
Any owner may ask a judge to appoint one when the owners' meeting fails to do so (art. 195 of the Civil Code).
Need advice?
At Reinicke Ostria we assist developers, administrators and co-owners with horizontal property divisions, drafting internal bylaws, obtaining legal personality, collecting common charges and legal due diligence before buying an apartment. Write to us on WhatsApp or through our contact page; we serve clients in Cochabamba and Santa Cruz, nationwide.
This article is for information only and does not replace advice on a specific case. Updated October 2026.
