Bill 554.

Summary.

The bill would apply to domestic and foreign individuals and legal entities that promote, develop, market or manage single-family or multifamily housing, whether under the horizontal property regime or in residential developments, neighborhoods and other urban projects. It covers homes, common areas, streets, utility networks and other promised infrastructure. It assigns oversight to the Authority for Consumer Protection and Defense of Competition (Autoridad de Protección al Consumidor y Defensa de la Competencia, ACODECO), in coordination with the Ministry of Housing and Land Management (Ministerio de Vivienda y Ordenamiento Territorial), Ministry of Public Works (Ministerio de Obras Públicas) and National Institute of Water Supply and Sewers (Instituto de Acueductos y Alcantarillados Nacionales). Its provisions would be mandatory rules supplementing the Civil Code (Código Civil) on latent defects and Law 284 of 2022 on horizontal property (Ley 284 de 2022 sobre propiedad horizontal).

Developers, real estate firms and builders would remain responsible for a project until its complete, functional delivery. Changes to promised features would require buyers’ express written consent, and advertised common areas and infrastructure would have to be delivered in working order. Formal delivery and definitive establishment of horizontal property would be barred while those works remained incomplete or differed from what was offered. The bill would require construction insurance for ten (10) years and a bond equal to 10% of the project value for at least ten (10) years. Owners, owners’ boards and residents’ associations could call on them with a technical report. Firms would have to disclose their terms before contracting, perform preventive maintenance for three (3) years and compensate damage caused by failure to maintain the property.

Collective-use infrastructure intended to become public property would have to follow approved plans, permits and applicable standards. Transfer to the State or municipality would require completed works free of encumbrances, favorable technical certification and formal acceptance. Until acceptance, the developer or builder would retain responsibility for operation, safety, repairs and maintenance. Separate or project-wide guarantees would secure delivery; violations could lead to fines, corrective works, permit restrictions and a bar on registering new projects.

Buyers would have rights to habitable property, repairs, information and compensation. They would receive technical information before signing, while customer service units would have fifteen (15) business days to answer complaints. Failure to deliver as agreed, or serious defects that cannot be remedied within a reasonable time, could entitle buyers to the return of their initial payment plus statutory interest. A complaint to ACODECO could be filed within five (5) years of delivery or discovery, whichever occurs first, supported by evidence and an independent technical report. The procedure provides for admissibility review, responses, evidence, documented settlement and a reasoned decision; it also permits class actions. A decision could order repairs, repayment of the price or penalties. Appeals would go to the Administrator for Consumer Protection and Defense of Competition (Administrador de Protección al Consumidor y Defensa de la Competencia).

The bill sets fines for failure to repair, repeated violations, concealment and obstruction, alongside suspension, disqualification, compensation, monthly coercive fines and judicial enforcement. ACODECO could refer indications of crime to the Public Prosecutor’s Office (Ministerio Público). For abandoned projects, it defines grounds for a presumption of abandonment, requires guarantees of twenty percent (20%) before marketing and allows administrative intervention to complete the works. It extends joint and objective liability for defects and abandonment for at least ten (10) years, voids clauses limiting that liability, provides transitional adjustments and requires implementing regulations. The provisions would concern the named public bodies and the housing, construction, real estate, insurance and utility sectors, as well as owners’ and residents’ associations.