Condominium & Estate Management
Legal support is provided regarding management plans, dues and common-area disputes, and the governance of shared living spaces.
Advice is offered to both estate/building management bodies and individual owners.
Services in This Area
- Drafting, reviewing and amending condominium management plans
- Recovery and collection of service charge and common expense receivables
- Actions for the annulment of owners' assembly resolutions
- Disputes over the use of and interference with common areas
- Ongoing legal advisory services for estate and building management bodies
- Disputes concerning the appointment, liability and removal of managers and auditors
- Disputes arising from neighbour law and disruptive use of units
- Establishing governance bodies and operating budgets in multi-block developments
What Does the Condominium Ownership Law Govern?
The Condominium Ownership Law No. 634 governs independent units, common areas, the rights and obligations of unit owners, and the management of apartment buildings and housing estates. The management plan operates as a contract binding on all unit owners and lays down the basic rules of communal living.
Forming bodies such as the owners' assembly, the manager and the auditor, observing meeting and resolution quorums, preparing the operating budget and apportioning common expenses are the principal subjects of this field. Information, advice and representation are provided to management bodies and individual owners alike.
What Can Be Done About an Owner Who Does Not Pay Service Charges?
Contributing to common expenses is a statutory obligation of every unit owner; enforcement proceedings may be initiated or a recovery action filed against an owner who fails to pay. Under the Condominium Ownership Law, default compensation of five per cent per month may be claimed on late payments.
As of 1 September 2023, applying to a mediator before litigation is a procedural precondition in disputes arising from condominium ownership. Against an owner who persistently fails to meet their obligations, an action seeking the transfer of the unit may also arise where the stringent statutory conditions are met; each situation needs to be assessed on its own facts.
Why Does Legal Advice Matter in Estate Management?
Owners' assembly meetings convened without proper notice, or resolutions adopted without the required quorums, may lead to those resolutions being annulled. Managing meeting invitations, agendas, proxies and the resolution book in accordance with the legislation contributes to preventing later challenges.
In multi-block developments in particular, correctly structuring the tiers of governance at block, parcel and estate level, preparing operating budgets and ensuring the lawfulness of decisions concerning common areas are of real practical importance. Legal support is provided at every stage, from the day-to-day running of management bodies to dispute proceedings.
Frequently Asked Questions
- What can be done about a unit owner who does not pay their dues?
- Enforcement proceedings may be initiated or a recovery action filed against an owner who fails to pay their service charges, and default compensation of five per cent per month may be claimed on late payments under the Condominium Ownership Law. As of 1 September 2023, applying to a mediator before litigation is a precondition in these disputes. The appropriate route is assessed according to the size of the debt and the debtor's circumstances.
- Can an owners' assembly resolution be challenged?
- Yes; an annulment action may be brought before the civil court of peace. An owner who attended the meeting and voted against the resolution may sue within one month of the resolution date, while an owner who did not attend may sue within one month of learning of it and in any event within six months of the resolution date. Prompt assessment of the specific situation matters so that these time limits are not missed.
- How is a management plan amended?
- Amending the management plan requires, as a rule, the votes of four fifths of all unit owners. Once registered with the land registry, the amendment binds all current and subsequent owners. Where practices conflict with the existing plan, the appropriate course of action is assessed according to the specific circumstances.
- Is mediation mandatory in condominium disputes?
- As of 1 September 2023, applying to a mediator before filing suit is a procedural precondition in most disputes arising under the Condominium Ownership Law. Service charge claims and common-area disputes fall within this scope. If no settlement is reached at mediation, the dispute proceeds to court.
These answers are for general information only and do not constitute legal advice. For an assessment of your specific situation, please consult a lawyer.
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