Law regulating condominium activities enters into force

Newsroom 31/07/2018 | 05:55

The new Law of Owners ‘Associations (196/2018) has appeared in the Official Monitor, with several aspects having been changed, including setting up and operating of owners’ associations, as well as the administration, maintenance and use of buildings or groups of buildings in condominiums.

The law applies to owners, tenants, owners’ associations and tenant associations in condominiums, and, in theory, aims at a better management structure of owners’ associations, as well as clarifying the attributions of each.

According to the new law, the president of the owners’ association and the members of the executive committee may be remunerated on the basis of a mandate contract, according to the decision of the general meeting of the owners, recorded in the minutes.

For failure to perform their duties or for overcoming the legal and statutory duties, the president of the association, the members of the executive committee, respectively the members of the censor commission or, as the case may be, the censor shall be liable personally or jointly for damages and damages to the owners or third parties, as the case may be.

Working capital

One of the changes brought by the new law is the introduction of the obligation to raise the working capital in order to secure the sums needed for current payments. The owners ‘association has to determine the amount and share of the owners’ participation in the establishment of the working capital.

The working capital will be set so that it can cover the monthly expenses of the condominium. 

Another provision is the obligation of the owners’ associations to take measures for the consolidation and modernization of the condominium.

The law provides that the association has to invest in the upgrade of equipment, installations and related equipment, installation of consumption meters for each individual property, thermal rehabilitation to increase energy performance, as well as structural and architectural rehabilitation of the condominium tire to increase its architectural-environmental quality according to the legal provisions, while preserving the harmonious and unitary appearance of the entire condominium, regardless of the nature of the interventions. 

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