An Association of condominium owners may be established for one or more entrances of the building or for several buildings under condominium ownership arrangements, which are semi-detached in the process of construction. The owners may establish an association with the view of absorbing resources from the European Union funds and/or the public or municipal budget, from grants and subsidies and/or use of own resources for the purposes of major overhaul and/or major renovation of buildings under condominium ownership arrangements. The association may also perform other activities, related to the management of the common areas of the condominium.
Keep in mind that more often than not, the management of condominiums in a residential or holiday complexes with restricted access is governed by a contract concluded between the investor and the owners. Nevertheless, the owners may form an association, instead of signing maintenance contract with the investor.
The Association of condominium owners is a legal entity. It shall be registered at the respective municipality by location of the building under condominium ownership arrangements. The association shall also be entered on the BULSTAT register.
The Association shall comprise a general assembly, a managing council (manager) and a control board (controller). It is represented by the managing council (manager) in its relations with local authorities and other third parties.
Establishment of an Association of condominium owners
The association can be established by owners, representing at least 67 percent of the undivided shares of the common areas of the entrance (entrances or buildings).
Any owner may request that a constituent assembly be convened and may put forward a draft agreement on the establishment of the association.
The Constituent Assembly is convened by invitation. It is placed in a prominent and generally accessible location at the building entrance. The invitation contains the agenda, location, date and time of the meeting. The draft agreement on the establishment of the association shall also be attached to the invitation.
The Constituent Assembly shall:
- adopt a decision for establishment of the association;
- define the name of the association. The name must bindingly contain the name of the settlement and a complete administrative address. Where the cities are subdivided into districts the name of the association must also contain the name of the district;
- adopt an agreement on the establishment of the association;
- elect a management board (manager) and control board (controller).
Where the Association is established only for the purpose of participation in a certain funding program, the constituent assembly may set a specific term for the existence of the association.
The agreement on the establishment of the Association of condominium owners contains:
- the name of the association and its address;
- the subject of activity of the association,
- the decision making procedures;
- the membership, mandate and organization of the work of the managing board (manager) and the control board (controller);
- other conditions that the owners agree on.
The minutes of the constituent assembly and the adopted agreement shall be signed by all members of the association or by their representatives.
Registration of an Association of condominium owners
The chairperson of the managing council (manager) shall submit an application within 14 days of the Constituent Assembly to the respective municipal administration to enter the association in a public register.
The following documents must be attached to the registration application:
- a list of owners, participating in the association;
- the Minutes of the constituent assembly;
- an invitation for holding the constituent assembly;
- the Minutes of pasting the invitation for convening a constituent assembly;
- the Agreement on the establishment of an Association of condominium owners;
- samples of the signatures of the persons representing the association, certified by a notary.
Following entry on the register the municipal administration issues a certificate of registration of the association.
Within 7 days of receiving the registration certificate, the chairperson of the managing council (manager) must submit an application for registration of the association with the BULSTAT register.
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