Етажна собственост

Life in a building with many apartments almost always comes with the same challenge: how can people with different habits, expectations, and interests coexist peacefully and in an orderly manner? Wherever there are common areas, shared expenses, and collective decisions, clear organization is also necessary.

In order for all processes within the building to run smoothly and to avoid unnecessary disputes, condominium ownership is regulated under the Condominium Ownership Management Act (COMA). This law governs the rights and obligations of all owners and occupants in the building.

In this article, we will look at the most important aspects of the topic — clearly, practically, and without unnecessary complication.

Who manages condominium ownership?

By law, there are two ways to manage condominium ownership: through a General Meeting or through an Association of Owners..

The most common option is management a General Meeting. Това е стандартният ред, при който собствениците участват в обсъждането и вземането на решения за сградата. В определени случаи в събранието могат да участват и ползватели на обекти – например лица, които не са собственици, но имат вещно право на ползване.

The other option is an an Association of Owners.This is a more specific mechanism because it involves the creation of a separate legal entity. In practice, this option is used mainly when the building applies for funding under energy efficiency programmes, thermal insulation schemes, major renovation projects, or the absorption of European funds.

In this article, we will consider only the standard management method — namely, management through a General Meeting.

What are the bodies of condominium ownership?

In order for condominium ownership to function properly, the law provides for several main bodies.

a General Meeting – — this is the body that adopts decisions. It is composed of the owners of the individual units in the building. All owners of units in the building participate — the people who own property in the building also jointly own the common parts, and only they make decisions concerning the building in question. Users may also attend meetings and participate in decision-making, except in relation to specific and important matters.
Management Board or Manager – — this is the body that, in practice, organizes the day-to-day management and implements the decisions of the General Meeting. In everyday language, the term “building manager” is also commonly used. The term of office is up to two years.
Supervisory Board or Supervisor – — this is not mandatory, but it is often useful. It monitors the manager’s financial activity and reports to the General Meeting.
Cashier – — this function is also not mandatory, but in many buildings it facilitates management. The cashier collects the monthly contributions, the contributions to the “Repairs and Renovation” Fund, and allocates expenses. It is worth remembering that it is the cashier who issues receipts for paid amounts. These receipts serve as proof that you have fulfilled your obligations to the condominium ownership, so it is important to keep them.

What documents should a condominium ownership have?

Before reaching meetings and decisions, every condominium ownership should prepare its own Condominium Registerin which all important data regarding the individual units (that is, the apartments, offices, and other premises in the building), their owners, users, and occupants (for example, tenants), as well as pets that regularly enter and leave the building, should be recorded. Every new owner or tenant must submit a declaration for the registration of these circumstances within 15 days of the occurrence of the new circumstance.

An increasingly common problem is the lack of timely completion of the Register for various reasons. This, however, creates an obstacle to electing management bodies, holding lawful meetings, and in practice is a symptom of the owners’ lack of interest in the common affairs of the building.

In principle, the law also requires the condominium ownership to adopt Internal Rulesalthough this is often a document overlooked by most residents of buildings. It regulates rules specific to the particular building and its residents — for example, time slots for repair works, parcel deliveries, entry of third parties into the building, leaving old items in common landings, maintaining cleanliness, and so on. Such rules are rarely drafted, as the dynamics within condominium ownership are often difficult to capture within strict boundaries, which discourages owners from adopting them.

How and when is the General Meeting convened?

The General Meeting must be convened at least once a year. This may be done by:

the manager;
the supervisor, if there is one;
owners holding at least 20% of the ideal parts of the common parts of the building;
any owner or user, if more than one year has passed since the last meeting or if the case is urgent.

In order for the meeting to be lawful, everyone must be notified in advance. This is done by means of an invitation posted in a visible place in the building. As a rule, the invitation must be posted at least 7 days before the date of the meeting. In urgent cases, the period is 24 hours.

The invitation must state the agenda, the date, the time, and the place of the meeting.

There is also an interesting practical peculiarity. Since it is difficult to prove the exact moment when the invitation was posted, the posting itself is certified by means of minutes — again by the person convening the meeting.

What happens with owners who do not live in the building?

This is an important issue that often creates tension.

If an owner does not live in the building, they must have indicated an address or email address to which invitations are to be sent. In that case, the person convening the meeting is obliged to send the invitation through the relevant channel.

However, if the owner has not provided such details, the law deems them duly notified solely by the posting of the invitation in a visible place in the building — even if, in practice, they have not seen it.

How is the General Meeting conducted?

Quorum – — in order for the meeting to begin, a certain minimum number of owners present or represented must be in attendance. This is the so-called quorum.

As a rule, at least 51% of the ideal parts of the common parts of the building must be represented. If one owner holds 51%, then the minimum quorum is 75%.

What happens if there is no quorum? In that case, the meeting is postponed by 1 hour. After that, it may proceed lawfully if at least 26% of the ideal parts are represented. If that quorum is also lacking, the meeting is held on the next working day and is lawful regardless of how many ideal parts are represented.

Representation – — not everyone is able to attend in person, and the law provides for this possibility as well. An owner may be represented by an adult member of their household, by another owner in the building, or by a third party. However, when the representative is a third party who is not an owner, the power of attorney must have a notarized signature. One person may represent no more than three owners.

Online participation – the law also allows for a hybrid form of participation — in person and online via videoconference. However, this must be provided for in the Internal Rules.

How are decisions adopted?

When decisions are adopted, each owner’s vote carries weight corresponding to their ideal parts of the common parts of the building. Most decisions — for example, the election of a manager or the determination of monthly contributions — are adopted by a majority of more than 50% of those present at the meeting.

For more important matters, however, the law requires a higher majority of all ideal parts in the condominium ownership. For example:

more than 51% of all ideal parts is required for major renovation;
75% of all ideal parts is required for taking out a loan;
full unanimity is required for changing the purpose of a common part, adding extra floors, or extending the building.

For certain decisions, including taking out a loan, absentee voting is also possible. Owners who did not participate in the meeting may, within 7 days, submit a written declaration to the manager indicating the way in which they vote.

Why are the minutes so important?

Because the decision “lives” in them.

Following the General Meeting, minutes must be prepared within 7 days. They must reflect the date, the agenda, those present, the statements made, and above all the decisions adopted and the voting results.

After they are prepared, a notice is posted in a visible place in the building informing the owners that the minutes have been drawn up and that everyone has the right to ознакомиться with them and challenge their content. This must be done within — yes, you guessed it — again 7 days.

What income and expenses are collected and used by the condominium ownership?

As a rule, the expenses in condominium ownership are divided into two main groups.

Management and maintenance expenses

These include the current expenses of the building — electricity for the common parts, water for cleaning, lift maintenance, cleaning, remuneration for the cleaner, the building manager, and the cashier.

By law, these expenses are distributed equally among the occupants — owners, users, and members of their households — with children under 6 years of age not being counted.

There are also some particularities that often surprise people. For example, pets that are taken outside also participate in this calculation — expenses are due for them as for one person. If a given unit is occupied for a total of up to 30 days within one calendar year, the expenses are again determined as for one person. If, on the other hand, the property is used as an office or for professional activity involving visits by outsiders, the General Meeting may, by a reasoned decision, determine a higher amount due — from 3 to 5 times the usual amount.

“Repairs and Renovation” Fund

These are separate monthly contributions used only for future repairs and renovation. The amount of the contributions is determined by the General Meeting according to each owner’s ideal parts, but the law also sets a minimum — they may not be lower than 1% of the minimum monthly wage for the country.

Can decisions of the General Meeting be challenged before a court?

The decisions of the General Meeting are binding on all owners, users, and occupants, including those who acquired the property after the decisions were adopted. If someone fails to perform their obligations arising from such a decision, the manager may request that the court issue an order for enforcement.

At the same time, every owner who considers that a given decision is unlawful has the right to challenge it before the district court. The time limit for doing so is 30 days from notification of the decision. The condominium ownership is represented before the court by the manager. If the condominium ownership itself decides to bring a claim against a third party, it must expressly authorize the manager to do so.

In conclusion

The management of condominium ownership often appears to be a series of formalities, but in fact it concerns something highly practical — who makes the decisions, how the money is collected, how repairs are carried out, and how conflicts between neighbours are avoided.

In the event of issues related to condominium ownership management, the correct legal approach is essential. KGK Law Firm can assist you in challenging unlawful decisions of the General Meeting, preparing documents, interpreting and applying the Condominium Ownership Management Act, as well as in the judicial protection of your rights and lawful interests. Contact us!