Amendments to the Condominium Ownership Management Act
As of 01.01.2024 numerous amendments of the Condominium Ownership Management Act have entered into force, introduced by State Gazette No 82 dated 29.09.2023.
As of 01.01.2024 the possibility of electronic recording and storage of information related to the condominium ownership in electronic form has been created. Thus, the condominium book can now be in the standard paper form or in an electronic version. The same applies to the powers of attorney for participation in the general assembly and the newly introduced declarations for decisions adopted in absentia.
- General assembly
In the beginning of 2024, simplified rules for the general assembly have come into force. It can now be held in a mixed form (in person and online), with the procedure to be regulated in the internal rules of the condominium.
Quorum rules have also been amended. In order to hold a general assembly, 51% of the ideal parts of the common areas must be represented, as opposed to the current 67%. The falling quorum has also been changed accordingly from 33% to 26%.
There is also a new rule where 51% of the ideal parts of the common areas are held by a single owner, the general assembly will require an increased quorum of at least 75% of the ideal parts of the common areas.
The majority for certain decisions of the general assembly is also reduced or explicitly regulated, so that approval of not less than 51% of the ideal parts of the common areas is required for the following decisions: (i) major renovation, major overhaul, etc.; (ii) determining the method of allocation of the costs of maintaining the common areas (equally according to the number of owners, users and occupants, according to the percentage of the unit’s ideal parts of the common areas of the building, or equally per separate unit); (iii) electing the manager/managing board.
There is also a new rule regarding the right of the general assembly to decide on the use of revenues from advertisements placed on the building and/or rental of common areas for the purpose of servicing loan obligations (for major overhaul, renovation or renewable installations).
- New obligations of the manager of the condominium ownership
New obligations are introduced for the managers of the condominium ownership. As of 01.01.2024, the manager is obliged to provide a monthly report on the income and expenses of the condominium ownership in a visible and publicly accessible place at the entrance of the building.
The condominium book is also to be completed by the manager based on a declaration form provided by each owner, listing household members, occupants and animals to be taken out for a walk. The obligations to notify the municipality about pets in the building remains in effect.
- Novelties in the invitation format. Introduction of voting in absentia
As of 01.01.2024 the new requirements about the form of the invitation for the general assembly and the possibility of voting in absentia came into force. The invitation must now contain draft decisions in the event of an intended vote in absentia, as well as the date and time of the vote.
The voting in absentia is a completely novel concept in the condominium ownership regulation, admissible for a limited number of decisions – when taking decisions related to major renovation, major overhaul, utilising of funds from the European Union, payment of financial obligations, etc. Absentee voting for decision-making shall be carried out within 7 days after the general assembly by depositing a declaration of voting to the managing board (manager). The decision to hold a vote in absentia shall also be taken by the general assembly and recorded in the minutes of the assembly.
- Professional property manager
The concept of the professional property manager is explicitly regulated in the amendments. The property management companies must meet specific requirements. A special register is to be developed by the Ministry of Regional Development and Public Works in which all professional property managers will be registered as a pre-condition for performing their activities. However, the changes concerning property management companies will come into force in 2025.