Horizontal Property in Uruguay (2026): Rights and PH Checklist

INGAR · 2026-02-13 · Legal

What nobody explains before you buy in a building

When you buy an apartment in a building, you are not just buying your unit. You are entering a legal regime — horizontal property — where you share ownership of everything that is not your apartment: the structure, the rooftop, the stairways, the elevator, the hallways, the main pipes, the land. All of that belongs to all co-owners, in proportion to the value of each unit.

That means that decisions about the building are made collectively (in assembly), expenses are shared by everyone (common charges), and if one co-owner doesn't pay, it becomes everyone's problem. It sounds reasonable in theory. In practice, it is where most conflicts in a property owner's life arise.

At INGAR we see purchase transactions where the unit is in perfect condition but the building has serious problems the buyer never investigated. This guide explains what you really need to know before buying a PH unit in Uruguay.

What the law says (the important parts, without the jargon)

Horizontal property in Uruguay is governed by Law 10,751 of 1946, one of the first in Latin America to regulate this matter. It has been amended several times (Decree-Law 14,560 of 1976, Law 19,604 of 2018, Law 20,058 of 2022). The essentials:

You are the exclusive owner of your unit (the apartment, with its boundaries defined in the regulations).
You are co-owner of the common areas: land, foundations, load-bearing walls, rooftop, stairways, elevator, general installations (water, electricity, sewage), hallways, concierge area. These areas can never cease to be common — the law states this explicitly.
Your share is measured by the "coefficient" of your unit. It is a fixed percentage established when the building enters horizontal property and determines how much you pay in common charges and how much weight your vote carries in assemblies.

The coefficient: the number that defines your life in the building

Each unit has a coefficient expressed as a percentage of the total value of the building. For example: in a 20-unit building, a 3-bedroom on the 8th floor might have a coefficient of 7.2% while a studio on the ground floor has 2.1%.

That number determines two fundamental things:

How much you pay in common charges. If the building's total expenses are $200,000 per month and your coefficient is 5%, you pay $10,000.
How much your vote counts in assembly. Your voting power is proportional to your coefficient, not "one vote per unit."

Who sets the coefficient? Generally it is established by the developer when the building enters horizontal property, based on the floor area, location within the building, and characteristics of each unit. Once set in the co-ownership regulations, it is practically permanent — changing it requires unanimous consent of all co-owners, which in practice almost never happens.

Important note: if you feel your coefficient is unfair (and this happens more than you might think), the law states that in case of disagreement, the valuation of the Dirección Nacional de Catastro is used as a reference. But making a claim is a long and costly process.

Common charges: the cost that never ends

Common charges are your monthly contribution to building maintenance. They are divided into:

Ordinary: what is spent every month — concierge, cleaning, lighting in common areas, water (if centralized), elevator maintenance, building insurance, administration. These are recurring and predictable.
Extraordinary: specific works or repairs — rooftop repair, facade painting, elevator replacement. These are approved at assembly and billed as an extra charge or funded from the reserve fund.
Reserve fund: monthly savings to cover unforeseen events and future works. The assembly decides the amount. In older buildings it should be high; in many it does not exist or is negligible.

Legal exemption: ground-floor owners are exempt from contributing to stairways and elevator costs. This comes directly from Article 5 of Law 10,751.

What you need to know as a buyer: ask for the last 6 common charge statements, not 1 or 2. A single statement tells you nothing. You need to see the trend and whether there are approved or pending extraordinary charges. More detail at common charges: what they include and how they are calculated.

What happens if a neighbor doesn't pay?

This is probably the most real concern about living in a PH building and the one least talked about before buying.

When a co-owner stops paying common charges, money is missing to maintain the building. If several stop paying, the building deteriorates quickly: repairs are postponed, preventive maintenance stops, and those who do pay end up covering the difference (or the building falls apart).

The law gives the building tools to collect:

Reciprocal mortgage: each unit carries a legal mortgage in favor of all other co-owners as a payment guarantee. This means that ultimately, your apartment can be auctioned off for common charge debt. This is not theoretical — it happens.
Enforceable title: the common charge statement approved by the assembly functions as an enforceable title. The administrator can go directly to court to collect, without a prior ordinary lawsuit.
Interest: since Law 19,604 of 2018, late-payment interest is capped at 12% annually, non-compounding. Before this law, debts multiplied so much they became unpayable.
Statute of limitations: common charge debt has a 4-year statute of limitations.

What this means for you as a buyer: before purchasing, ask for a certificate confirming the unit is current on common charges. And find out the overall delinquency rate in the building. If 30% of units are in arrears, the building has a serious problem that will affect your quality of life and the value of your property.

The assembly: how decisions are made

In a PH building, important decisions are made at co-owners' assemblies. In practice, the assembly is where the budget is approved, administrators are elected, works are authorized, and conflicts are resolved.

How quorum works

Convocation	Required quorum	Majority to decide
First	Majority representing at least 3/4 of the building's value	Simple majority of those present
Second (1 hour later)	No minimum — whoever shows up	Simple majority of those present

This means that on second convocation, 3 people can make decisions that affect the entire building. And this happens constantly. Participation in assemblies in Uruguay is historically low — in many buildings it doesn't reach 10% of co-owners. If you don't attend, others decide for you. Including how much you'll pay in extraordinary charges.

Decisions requiring special majorities

Not everything is resolved by simple majority. For certain decisions, the law requires 2/3 of co-owners representing at least 3/4 of the building's value:

Improvements to enhance the use of common areas.
Modifications that alter the architectural appearance of the building.
Changes in the purpose or surface area of common areas.

These majorities are matters of public policy — they cannot be reduced even by agreement among co-owners. It's the law.

Virtual assemblies (since 2022)

Since Law 20,058 of 2022, assemblies can be in-person, virtual, or hybrid. They must be conducted with real-time audio and video. This helped improve participation, especially in large buildings where many owners don't live in the unit (investors, rentals).

The co-ownership regulations: read them before buying

The regulations are the building's "social contract." They define the rules of the game and are binding on all co-owners and their successors (meaning you, if you buy).

Before closing the purchase, your notary should review them. But read them yourself too, paying attention to:

Permitted use of units: can they be used as offices? Can short-term rentals (Airbnb) be done? Some buildings expressly prohibit this.
Pets: each building has its rules. Some prohibit them, others set conditions. Verify before, not after.
Internal works: what you can modify in your unit and what requires assembly approval.
Noise and cohabitation hours: these vary considerably from building to building.
Parking and storage: how they are assigned, whether they are private or common use.

A real case we often see: someone buys an apartment planning to rent it on Airbnb and then discovers the regulations prohibit it. Or they buy with pets and the regulations don't allow them. Reading the regulations beforehand saves you those problems.

Works: what you can and cannot do

Within your apartment you have quite a bit of freedom. Painting, changing floors, renovating kitchen or bathroom, changing internal doors and windows — all of that you can do without asking anyone's permission (as long as you don't affect the structure).

You need assembly authorization for:

Any work that touches common areas (main pipes, facade, rooftop).
Modifications that alter the appearance of the building (enclosing a balcony, for example).
Joining two adjacent units (involves opening dividing walls or slabs).
Building upward (raising the structure) — requires authorization from all co-owners.

For any work that could affect the structure, the law requires a prior technical report certifying that the solidity, stability, safety, and hygiene of the building are not compromised. Carrying out works without this is illegal and can have serious consequences.

The administrator: who manages the building's money

The administrator is the one who executes assembly decisions, collects common charges, pays for services, hires and dismisses staff (concierge, cleaning), and legally represents the building.

They can be a co-owner acting on an honorary basis or a professional firm. In either case:

They must be registered with the Ministry of Labor (MTSS).
They are appointed by the assembly, generally for a renewable one-year term.
They must render accounts — if they don't show clear numbers, it's a red flag.
They have civil (and potentially criminal) liability for mismanagement.

Before buying, ask who manages the building and for how long. A building with a good administrator is noticeable: clear expenses, up-to-date maintenance, established reserve funds. A building with a bad administrator is equally noticeable: expenses that rise without explanation, postponed repairs, assemblies that are never convened.

PH Checklist before buying

This is what we recommend requesting and verifying before closing the purchase of any unit in horizontal property:

Co-ownership regulations: read them in full. Verify permitted use, pets, works, short-term rental.
Last 6 common charge statements: review amounts, trends, and whether there are extraordinary charges.
Unit debt certificate: confirm it is current on common charges.
Building delinquency rate: ask the administrator what percentage of units are in arrears.
Reserve fund: how much it holds and what it is projected to cover.
Minutes of the last 2 assemblies: see what works were approved, what conflicts exist, what participation is like.
Elevator status: last inspection, age, replacement plan.
Rooftop and facade condition: whether there are planned or pending works.
Administrator: who they are, how long they have managed the building, whether they are registered.
Your coefficient: what it is and how it compares to similar units in the building.

Sources

Law 10,751 (1946) — Horizontal property regime.
Decree-Law 14,560 (1976) — Reciprocal mortgage and assembly quorum.
Law 19,604 (2018) — Reform of common charge debt.
Law 20,058 (2022) — Virtual assemblies.
Law 20,446 (2025) — Quorum for complexes of 100+ units.
Dirección Nacional de Catastro — PH certificates and cadastral values.