Co-ownership and apartment right

“ A good neighbor doubles the value of your home…”

Co-ownership and apartment right

(Tuscan medieval high-rise where many could theoretically live together)

Anyone who lives in an apartment knows that a part of the building is managed by the association of co-owners. After all, you are only owner of the private areas and co-owner of the common areas.

In general, when a building is under construction the owner will immediately decide whether it is a single-family house or an apartment. However, there are many other ways in which an apartment ownership can be established: division as a result of a will or donation, following a divorce by mutual consent of due to irreversible disruption, or even in case of legal succession when the heirs decide to do so.

The association of co-owners has its own legal personality and consists of two legal bodies: the General Assembly and the building manager.

Although the legislator has provided certain rules to guarantee the right to participation, most rules are determined in the founding act and the rules of co-ownership. These are enshrined in an authentic act. There’s off course also the possibility to refer the matter to the judge in case certain decision would be arbitrary or prejudicial. Any co-owner can ask the judge:

- To annul or alter an irregular, deceptive or unlawful decision of the General Assembly within four month after the General meeting;

- To order the convening of a general meeting, in order to discuss a specific proposal of a co-owner, when the building manager refuses to do so unlawfully;

- For permission to carry out urgent and necessary work on the common areas at the expense of the association, when the required majority isn’t reached in the General Assembly;

- To alter the division of shares of the common areas, in case the division is calculated incorrectly or has become incorrect due to modifications to the building;

- To alter the distribution of burdens, in case this causes a personal disadvantage, as well as alter the calculation of this division, in case this is done incorrectly or improperly due to modifications to the building;

- That he, instead of the General Assembly, takes the necessary decision when a minority of co-owners prevents the decision unlawfully.

The General Assembly

Every co-owner is a member of the General Assembly and takes part in the deliberations. The General Assembly is the supreme body and takes decisions concerning both financial and practical and statutory matters. She also appoints the building managers.

The General Assembly shall be convened at least once a year at the date provided in the rules of co-ownership. The building manager can convene a General Assembly in case an urgent decision has to be taken in the interest of the co-ownership. In addition, one or more co-owners in possession of at least 1/5th of the shares in the common parts, can demand the building manager to convene a General Assembly. Therefor they send a registered letter to the building manager. If he doesn’t take the necessary actions, one of the applicants himself can convene the General Assembly.

The General Assembly can only take valid decision in case of:

- A presence or representation of at least 50% of the co-owners and in case these represent at least half of the shares in the common parts, or;

- The attendees or the represented co-owners own more than 75% of the shares in the common parts.

If those conditions aren’t fulfilled, a second meeting will be convened after ? a period of 15 days. This General Assembly can take valid decisions regardless of the number of attendees of represented co-owners or the percentage of shares they represent.

Decisions are made by absolute majority or qualified majority. Voting rights are limited by the following rule: a single co-owner can never vote with a greater number of votes than the total number of votes held by the other attending or represented co-owners.

Building manager

The building manager ensures that the decisions taken at the General Assembly are being executed.

The tasks of the building manager are mainly legally determined and contains among other things the financial, technical, administrative and communicative management. He is appointed for a maximum of three years which may be renewed. The General Assembly can dismiss the building manager at all times.

The board of co-ownership

The board of co-ownership is assigned by the General Assembly to assist the building manager and to supervise its management. The installation of the board is mandatory when the building contains more than 20 lots.

Every six months the board sends a detailed report on the performance of its duties to the co-owners.