Association of co-owners of apartment building in the new builds: how not to fall into the trap

  • 28/03/2019

Association of co-owners of apartment building is the most effective form of management of common property (apartment building). Therefore, the owners of apartments in new buildings under the law of Ukraine have the right to create condominiums. But, as practice shows, residents do not always understand what the creation of condominiums means, what rights and owners of apartments have to have and to whom they entrust the management of their housing. The lawyers of Intergal-Bud company prepared several tips for residents who plan to create condominiums in new buildings.

How to create: an action algorithm

If we talk about the general algorithm, the procedure for creating Association of co-owners of apartment building includes the following steps:

- creation of an initiative group;

- formation of the register of co-owners;

- convening a constituent assembly;

- preparation of the draft Charter of Association of co-owners of apartment building;

- conducting a constituent assembly;

- state registration of condominiums.

The initiative group must consist of at least three people. It is this group that convenes a constituent assembly, necessary for the creation of condominiums. Then the group should inform each co-owner about the time and place of the meeting. Co-owners of apartments or non-residential premises of the house directly participate in the meeting, otherwise the meeting may be considered held contrary to the norms of the law.

The law does not have a minimum quorum of the general meeting, but it is indicated that co-owners of more than half of the total area of ​​non-residential apartments should agree with the creation of condominiums.

Violation of such a procedure may be grounds for invalidating the decisions of the constituent assembly and the constitution of the condominiums, canceling its state registration. The moment from which Association of co-owners of apartment building is considered to be created is not the adoption of a decision by the constituent assembly, but the state registration of the association. Therefore, state registration is the last step in the procedure for creating condominiums. It is the same as the registration of a legal entity.

Risks and myths about Association of co-owners of apartment building

The lawyers of Intergal-Bud also talk about the risks that residents should understand when creating condominiums: this is the late payment by some residents of the costs of maintaining the house, through which bills for the maintenance of the house are not timely paid, the staff is not paid, the engineering equipment of the house is not maintained, necessary repair and preventive repairs are not carried out.

For example, in a new building in the first year of settlement, not more than 50% of residents honestly pay for the maintenance of the house, while the rest simply do not.

Even if the majority of residents agree to the creation of condominiums, it does not mean that they will all pay on time.

Unfortunately, the company already has experience in its facilities, when the board of condominiums in homes does not cope with its responsibilities. When the Association of co-owners of apartment building cannot independently solve problems that appear without fail during the operation of the house, for example, such as damage to the asphalt surface near the house, repair of pipes or elevators, they turn to the developer company for help. And residents massively write applications for leaving Association of co-owners of apartment building, since they understand that it is better when the house maintenance organization is engaged in professional maintenance.

We advise you to look closely at the composition of the initiative group for the creation of condominiums and the persons you elect to governing bodies.

Co-owners may include retired activists, the unemployed, or those who simply want attention to their person. Such persons often see in Association of co-owners of apartment building a place of their earnings, while not having the necessary qualifications.The unscrupulous people who will “earn” on the activities of the association, receive income at the expense of “kickbacks” at inflated rates of contractors and the like can seize power in the Association of co-owners of apartment building.

The management of the condominiums can use the premises of the house (lobbies and halls, for example) for their own purposes: from birthdays to illegal rentals.

Dispose of your rights wisely and do not succumb to manipulations that may further damage or depreciate your property.