Condominium rules have changed from 1 October 2009, to bring them more into line with modern life and prevent certain important decisions from being blocked by a small minority.
This includes reducing the majority required for certain super-majority decisions to be taken at condo general meetings.
However, the unanimous approval of a general meeting is now expressly required for extraordinary work to the building. This covers any work other than normal maintenance, repair and renovation, such as alteration, the construction of a new wing or floor or the installation of new machinery.
The requirement for unanimity to change the deed of foundation with regard to selling any part of the common area has been replaced with one requiring an 80% majority. However, the dissenting minority have 60 days to notify the condo representative whether they will contest the decision in court. If they do not contest the decision, the changes by 80% majority will take effect.
Many changes relate to the organisation of the condo, including more detailed procedural rules and a widening of the issues over which the owners’ meeting has exclusive competence. For example, the approval of a general meeting is now expressly required for any obligation to be undertaken on behalf of the condo.
The changes also clarify that a condo representative must continue in post for up to 90 days after their dismissal, to provide cover until their replacement is appointed.
There are also important changes for owners who are late paying their service charge, to encourage them to pay on time and simplify the enforcement process against them.
The key change is that a request for payment from the condo representative is deemed to be received by the owner on the eighth working day after the second attempt at delivery was made. There must be delivery or deemed delivery of a request for payment by the condo representative before he can go to court or apply to register a mortgage on the unit of an owner in debt.
Where the owner is more than six months’ behind with his service, the condo representative no longer needs approval from a general meeting to be able to apply to register a mortgage on that owner’s unit.
There are also new audit and financial controls, including a requirement that condos exceeding a set threshold for flats or turnover must employ a qualified accountant or auditor to manage the condo’s finances.
Law: amendment to the Act on Condominiums
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