When purchasing a condominium unit, you become not only the owner of the apartment, but also a co-owner of the condominium. This means you acquire a number of rights and obligations connected with its operation and management.
How the condominium infrastructure functions, how management is organized, and what rights and duties co-owners have are discussed in detail in this article.
Rights of co-owners.
Under the Condominium Act, co-owners have the right to:
- use common property within the condominium, including corridors, staircases, swimming pools, fitness rooms, and other shared facilities.
- conduct business activities only in premises specifically designated for such purposes.
- obtain a certificate of no outstanding debt from the manager for submission to the Land Department within 15 days.
- dispose of their apartment subject to the law and condominium regulations.
- participate and vote at General Meetings of Co-Owners.
- be elected to the Condominium Committee.
Obligations of co-owners.
- pay taxes and common fees in proportion to their share in the common property.
- comply with the Condominium Act and the condominium regulations.
A co-owner’s share in the common property depends on the size of the apartment and is proportional to its ratio to the total floor area of all units in the building.
How condominium management works.
Co-owners may exercise their rights through participation in General Meetings.
Management is also carried out through the Condominium Manager and the Condominium Committee.
First general meeting.
Held by the Manager within 6 months after registration of the condominium.
At this meeting:
- the Committee is elected.
- the rules are approved.
- the Manager is approved.
Subsequent meetings.
Held annually within 120 days after the end of the financial year.
Agenda items include:
- approval of balance sheet and annual reports.
- appointment of an auditor.
- other matters.
Extraordinary meetings.
May be initiated at the request of:
- the Manager.
- the Committee by majority vote.
- co-owners holding 20% of voting rights.
The Committee must convene the meeting within 15 days after receiving such request.
Meeting requirements.
- notices must be sent 7 days in advance.
- the place, time, and agenda must be specified.
- quorum requires at least 25% of all voting rights.
- resolutions are adopted by majority of those present.
Voting and important decisions.
Certain matters require not a simple majority, but a specified percentage of all voting rights.
More than 50% of all voting rights is required for:
- acquisition of property into common ownership.
- disposal of common property.
- approval of alterations to a unit affecting common property.
- amendments to rules or common expenses.
- construction works in common areas.
If less than half of all voting rights attend the first meeting, a second meeting may be held after 15 days, where one-third of all voting rights is sufficient.
At least 25% of all voting rights is required for:
- appointment or dismissal of the Manager.
- determination of powers granted to the Manager’s representative.
Unanimous consent of all co-owners is required for:
- cancellation of the condominium registration.
How to protect your interests.
If you wish to influence condominium management:
- gain the support of like-minded co-owners.
- if you are abroad, issue a power of attorney.
Restrictions on representatives.
One person may represent no more than 3 apartments.
The following persons may not act as representatives:
- members of the Committee and their spouses.
- the Manager and his or her spouse.
- condominium employees or employees of the Manager.
Important: specify in the power of attorney how your representative must vote.
It is advisable to remain available during the meeting for prompt communication.
Alexandra Agapitova.
All rights reserved.
Copying or use of these materials without the prior written consent of the owner is prohibited.