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Is it mandatory to have a consortium administrator? - La Nacion Propiedades
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¿Es obligatorio tener administrador de consorcio?
La figura del administrador de consorcio es clave en la propiedad horizontal, pero su obligatoriedad varía según la cantidad de unidades y la normativa de cada jurisdicción
www.lanacion.com.ar
April 14, 2025
The role of the consortium administrator is key in horizontal property, but its obligation varies depending on the number of units and the regulations of each jurisdiction.
By Ariel Goldfarb
Everything you need to know about the requirement to have a consortium manager in buildingsRicardo Pristupluk - La Nacion
Living in a condominium involves not only sharing common spaces but also assuming collective responsibilities. One of the most frequently asked questions among owners and tenants is whether it is mandatory to appoint a condominium manager . The answer depends on the type of building and the agreement between the co-owners, but it is also regulated by law.
What the Civil and Commercial Code says
The National Civil and Commercial Code, in force since August 2015 , regulates the legal relationships between co-owners of a building in horizontal property. Article 2065 establishes that the consortium is required to have an administrator , but introduces an important distinction: this obligation applies when there are three or more functional units.
A building in horizontal property must comply with regulations that define the management and administration of common spaces.Daniel Basualdo
This means that, in the case of very small buildings—such as a duplex divided into two units—it is not legally mandatory to appoint a manager. However, a representative of the consortium must be present , because all horizontal properties are considered by law to be legal entities.
"Every consortium must have a legal representative, because by law it is a legal entity, even if it is only two units," explained Miguel Ángel Summa, president of the Argentine Chamber of Horizontal Property, in an interview with LA NACION .
Along the same lines, attorney Martín Lermer argued that the administrator is a mandatory figure under Article 2065 of the Civil and Commercial Code, unless the consortium involves fewer than three functional units. In that case, there is no obligation to appoint one, although a legal representative is essential .
Can the administrator be an owner?
Yes. The law does not require the administrator to be an external person or a registered professional, except in some jurisdictions that do require it for certain tasks (such as the Autonomous City of Buenos Aires, where registration is mandatory). Therefore, it can be a building owner appointed by an assembly , if the majority so decides.
The law establishes the obligation to appoint an administrator according to the number of functional units in each building.Kindness Is Vicis
If you don't have a professional administrator, management, maintenance, and expense collection tasks must be assumed by one of the co-owners or divided among several, which can create practical difficulties if there are no clear agreements. However, Summa warns that "everything must be documented" to comply with the law and avoid potential conflicts or sanctions.
For his part, Lermer also clarified that the administrator could be a neighbor, a company, or someone outside the building. "The important thing is that they be legally appointed by the assembly and accept the position," he added.
Can there be more than one consortium in a building?
Yes. This is the case with sub-consortiums , a concept that arises when the building structure has distinct sectors, such as a residential tower and a shopping mall on the ground floor. In these cases, each sector may have its own administration , although all depend on a general consortium. This division often facilitates operational and financial management, as it allows each part of the building to be organized according to its needs.Exceptions and particularities by jurisdiction
In the Autonomous City of Buenos Aires, Law 941 and its amendments regulate the activities of the administrator. There, all consortia must register in the Public Registry of Administrators , and administrators must submit annual accounts. This means that, in practice, even in small consortia, there is a tendency to formalize this position.
There are exceptions and particularities depending on the jurisdiction, such as in the Autonomous City of Buenos Aires, where the figure of the administrator is more strictly regulated. Daniel Basualdo
In other provinces, however, regulations may be less strict, although the general framework remains that of the National Civil and Commercial Code. Summa emphasized that there are various issues, including accounting, maintenance, community relations, and law enforcement —all fundamental tasks that the administrator must address to ensure the proper functioning of the consortium.
What happens if an administrator is not appointed?
If a manager is not appointed when required by law, the consortium breaches a legal obligation. This can generate conflicts between co-owners and lead to legal action, especially if there are disagreements over the management of common funds or the maintenance of the building. Summa warned that, in these cases, the consortium will be required to regularize its situation and, if the failure persists, may face sanctions.
In case of non-compliance, consortia may face sanctions and operational conflicts that affect the coexistence and maintenance of the building.
The lack of an administrator also creates operational problems, as no one is responsible for administrative and management tasks. This can affect both building maintenance and conflict resolution among co-owners, which in turn jeopardizes the consortium's operations.
The role of the administrator: an evolving profile
Although the role of the administrator is key to the functioning of a consortium, it is not formally regulated by a professional career . According to Summa, the administrator does not require a specific academic qualification; instead, their ability to manage the consortium's legal and operational obligations is valued. This lack of regulation creates challenges, especially when the administrator is not licensed, which can lead to problems within the consortium, ranging from a lack of legal compliance to mismanagement of funds.In the absence of a College of Administrators, the profile of the administrator remains an evolving activity that faces obstacles. This makes the role of the administrator essential but vulnerable to problems if it does not meet legal requirements.
Martín Lermer agrees that the administrator profile has become more professional in recent years through courses and training, but cautions that it is always important to ensure that the administrators come from reputable organizations or professionals with recognized technical expertise.
Can you do without the administrator and opt for self-management?
In some consortia, residents are considering self-management to avoid the costs of hiring a property manager . However, this alternative, while legally possible, is not without its challenges and risks.The president of the Argentine Chamber of Horizontal Property clarified that, while digital platforms exist for settling expenses or maintaining basic income and expenses, they do not replace the role of a professional administrator . "There are no virtual administrators, but what does exist are platforms that settle expenses," he clarified, warning that a lack of proper management can lead to serious operational and legal complications.
In buildings with three or more functional units, the law requires the appointment of a legally constituted administrator.Archive
On the other hand, Lermer explained that the consortium system allows for self-management , provided it is decided in an assembly and carried out in accordance with current regulations. "In jurisdictions such as the province of Buenos Aires or the City, the resident who assumes administrative tasks must register in special registries," he added.
Still, Lermer maintained that self-management is not a growing trend , and highlights three main reasons:
- The complexity of management : Buildings are becoming larger, with more units and greater operational demands, requiring time, commitment, and technical expertise.
- Technological evolution : keeping up with new tools, regulations, and jurisprudence requires ongoing training that is not always available to residents.
- Human relations : The administrator not only deals with technical issues, but must also mediate conflicts between consortium members, a task that requires skills such as empathy, assertive communication, and negotiation.
Building maintenance, which depends on factors such as the number of staff, amenities, and units, also requires professional management to oversee the proper execution of the tasks necessary for its upkeep.
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