How does the new law impact the transparency of condominium finances? Learn about the condominium law in detail.
The new condominium legislation introduces significant changes aimed at increasing financial transparency and clarifying issues that concern both property owners and administrators.
After all, when do condominium debts expire? And am I required to pay for condominium works? These are some of the questions that the new condominium law seeks to answer, introducing clearer rules and additional responsibilities for administrators.
What is the new condominium law?
The latest changes to condominium regulations stem from the enactment of Law No. 8/2022, which amended the horizontal property regime. This law applies to buildings with independent units owned by different proprietors.
It establishes that each autonomous unit must be independent, properly isolated from the others, and have its own exit to a common area or the street. The condominium law also outlines key rules to balance the rights and obligations of those sharing a common space.
The new condominium law introduces obligations when selling a property
The new law establishes clear obligations for selling a property to prevent non-compliance. From now on, the seller must inform the condominium administrator by registered letter within 15 days after the sale, providing details of the new owner. Failure to do so will result in the seller being responsible for costs related to identifying the new owner and for any late condominium fee payments.
Additionally, to complete the sale, the seller must obtain a certificate from the condominium administration confirming there are no outstanding debts. This certificate must be issued within 10 days and should state any existing service charges and debts. The law also clarifies that the new owner is not responsible for works on common areas that they did not approve—this responsibility remains with the previous owner.
Condominium repairs: what qualifies as urgent?
The new condominium law also provides a clear definition of urgent and essential repairs in the building’s common areas. Previously, any condominium owner could carry out such works in the absence of an administrator, but the law did not specify which types of interventions fell under this category.
Now, urgent repairs are defined as interventions necessary to address issues in common areas that, if not immediately resolved, could cause damage to the building, property, or endanger residents’ safety. Examples include roof repairs or stairway maintenance.
The cost of condominium works must be shared among all unit owners according to their respective share. This calculation is based on the percentage ownership (permilage) assigned to each unit, which also determines the amount of their condominium fees.
Transparency in condominium finances: the administrator’s role
The new law assigns greater responsibilities to the condominium administrator. The administrator must:
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Ensure the existence of a reserve fund for urgent expenses.
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Implement assembly decisions within 15 working days.
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Call an extraordinary assembly when necessary.
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Inform condominium owners about legal, arbitration, or administrative proceedings every six months.
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Obtain three quotes for major works or renovations, unless otherwise stated in the regulations or approved by the assembly.
What are the administrator’s responsibilities?
The administrator plays a key role in ensuring efficient management and transparency within a condominium. Their responsibilities include:
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Providing an annual financial report to the assembly, as stated in Article 1436 of the Civil Code.
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Ensuring financial reports are detailed, including revenues and expenses, and submitting them for approval as required by Article 1431.
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Guaranteeing that financial documents are clear and accessible to all condominium owners, as reinforced by Law No. 8/2022.
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Organizing regular meetings and maintaining transparency, allowing owners to question management and take legal action in cases of mismanagement.
Condominium meetings: how should they be conducted?
The new condominium law also introduces changes regarding condominium meetings:
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Assemblies can now be convened by email, provided that owners have previously agreed to this method and it is recorded in the minutes.
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Meetings can be held in person, via videoconference, or in a hybrid format, depending on the decision of the administration or the majority of owners.
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If an owner cannot participate via videoconference and notifies the administration, the administration must provide the necessary means. Otherwise, the meeting must be held in person.
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Decisions made during the assembly must be communicated to absent owners within 30 days by registered letter or email. If no response is received, consent is presumed.
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The meeting minutes may be signed digitally or in traditional handwritten form.
If you live in a condominium, you can stay informed about the new law and its updates through your condominium assembly. Keeping up with legal changes is essential to ensure harmonious and well-organized community living in your building.
Source: Idealista/news
