The Maintenance Agreements under the Law on the condominium ownership management
The Law on the condominium ownership management regulates the public relations, related to the management of the common areas of the condominium ownership, as well as the rights and duties of the owners in the block of apartments. The management covers the order and control over the use and maintenance of the common parts and compliance with the internal order in a condominium building, as well as the control over the fulfillment of the obligations of the owners, users and residents.
By law the common areas are: the land on which the building is constructed, the courtyard, the foundations, the external walls, the internal dividing walls between separate parts, the internal supporting walls, columns, cross beams, floor slabs, trimmer joists, staircases, landings, roofs, walls between attic and basement premises of the individual owners, chimneys, external entrance doors to the building, and the doors to the common parts of the attic and basement, the main lines for all manner of installations and their central outfits, elevators, drain-pipes, the janitor's apartment and everything else which by its nature or purpose serves for common use.
By law the management of the common areas of buildings in regime of condominium ownership, built in a housing estate of closed type, shall be done by a written agreement with notarized signatures of the investor and the owners of separate premises. The agreement shall be registered by the investor in the Registry Agency and is countervailable to the subsequent acquirers of the premises.
The forms of the condominium management are the General Meeting (which is consisting of all the owners in the complex) and/or an Owners’ Association. The widespread form of condominium management is the General Meetings which are consisting of all the owners in the complex.
The management bodies shall be:
1. General Meeting;
2. Management Board (Manager).
The rights of the General meeting are settled in Art. 11 of the Law. The General Meeting shall be summoned at least once a year by the Manager/Management board but it could be also summoned by owners, having 20% ideal parts of the common parts of the building. The General meeting is held if the owners of at least 51 % of the common parts of the condominium attend in person or through representatives. The decisions are adopted with different majority depending on the matter. Every owner may request a repeal of an illegal decision of the General Meeting before the Regional court, of the region where the condominium ownership is situated.
The Management Board (Manager) shall be elected for the term of up to 2 years. Members of the Management board can be owners and users. By decision of the General meeting, taken by a majority of more than 50 % of the common parts of the condominium, the powers or part of them of the Management board (manager) can be assigned to a professional manager-trader entered in the register under Art. 47a, para. 1, item 1. The assignment contract is concluded by a person authorized by the General meeting for a period of up to two years. The righst of the Management board are settled in Art. 23 of the Law.
For receiving of funds from the EU and/or from the state or municipal budget, grants and subsidies and/or use of own and/or borrowed funds for the purpose of major repair and/or major renovation of buildings the owners can form an association. The association is formed by owners representing not less than 67 percent of the common parts of the condominium. The association is a legal entity established in accordance with this law and only for the purposes of this law. The association shall be entered in the register at the Ministry of the regional developments and is also entered in the BULSTAT register.
The General Meeting of the owners or the association shall establish and maintain a Repair and Renovation Fund. The funds shall be collected from installments of the owners in an amount, determined by the General Meeting decision, but no less than 1% of the minimal salary of the state, or other sources.
This article was created by Valova&Angelova law firm.