On 28 September 2018 a new law (the law) came into force, providing new regulations relevant in practice for properties jointly owned by several persons. The law replaces in full the previous law on the establishment, organization and functioning of ownership communities. It is relevant to owners and purchasers.
It applies to every owner, tenant, and owner and tenant communities in condominiums. [Condominiums are properties consisting of one plot of land and one or more buildings, if there are at least three owners of apartments or residential buildings, or spaces designed for other use (eg. offices, stores, industrial buildings, etc.) and co-ownership shares.]
The law has introduced new regulations but also amended and extended existing ones:
Obligations on selling properties pertaining to condominiums
When selling a property that is part of a condominium, the owner must provide proof of payment of all joint costs to the ownership community up to the day on which the contract is signed.
Notaries can authenticate purchase agreements for such properties only upon the seller’s submission of a certificate from the ownership community attesting this payment or – if the costs are not entirely paid – mentioning the exact amount of the costs still to be paid. The certificate is valid for 30 days and must be signed by the manager and president of the ownership community, and also bear their stamp.
If there are debts owed to the ownership community, the purchase agreement will only be authenticated if the buyer expressly accepts in the contract to undertake all debts of the seller.
Not complying with the provisions above can lead to authenticated sale and purchase agreements being cancelled. However, they are not null and void by law (as provided in the previous law).
In the authenticated sale and purchase agreement, it must also be stated that the buyer undertakes to communicate to the president of the ownership community all information about the contract’s signing and contact information, within 10 working days after the transfer of ownership.
When selling a property belonging to a condominium, the owner must submit to the purchaser all documents relevant to the property sold, including an energy performance certificate. The parties must state expressly in the sale and purchase agreement that these obligations have been fulfilled.
Land register entry of debts owed to the ownership community; legal mortgage
The president or the manager of the ownership community must register any debts older than three months, where the amount exceeds the value of the gross minimum wage, in the land register of the relevant property.
Moreover, according to the new law, for all debts more than 60 days older than their due date, or that were published more than 90 days ago, there is a legal mortgage on the property, as well as privilege over all movable goods found there. The mortgage will be entered in the land register of the property; once the debt has been paid, the mortgage will be deleted within 10 days.
Further important obligations for the owner
According to the new law, the owners of properties that are part of condominiums have numerous obligations, such as:
- Informing the ownership communities, within 30 days of the completion of construction works, regarding every change to which their own properties are subject and for which a construction or demolition permit was required;
- Informing the ownership community, within 10 days following the contract signing, about every lease agreement or free lease agreement involving the property.
- Granting access to their properties to representatives of the ownership community for repair works carried out in joint areas, if such access is possible only through the property.
Important application standards, such as an ordinance for the approval of the statute sample and the regulation of condominiums, will come about within three months after coming into force.
The new law regarding ownership communities and condominiums provides important regulations in this field and has partially amended, complemented or extended the previous regulations. The law applies to all condominiums in which there are at least three owners, regardless of the type of use of the property. It should be noted by owners, users and purchasers.