Association of owners: reform presented to the Government

Minister for Regional Development proposes new regulations for the method of calling the meeting and decision making of the association of owners. Balconies will not be common prepmises any longer?

The Ministry for Regional Development has prepared a reform of the Flat ownership law, which has been in force since 1994 and which contains important changes with regard to the association of owners.

Analogous to most legal systems in the European Union (except for Italy, where this matter is questionable), in the Czech Republic the association of owners is a legal entity, authorized to make decision in the matter of rights and assumption of the obligation concerning the administration of the building. The owners are liable for the obligations of the association appropriate for the size of the the interests of a co-owner.

The interesting thing dealing with this reform is the possibility to decide in most of the association's matters outside of the association meeting, namely by written form, with exception of some matters - such as approving the final accounts.

The reform also determines the calling procedure of the meeting, in the absence of the articles provision to the contrary. The written invitation has to be send 15 days before the meeting day at the latest. There has to be written the place, where the owner can become familiar with written documentation, which is not attached to the invitation. With exception of case when the law determines the consent rule for all owners, to make a decision, which needs to be approved by the absolute majority of votes of all the owners (the law, which is presently in force requires diverse mojorities of votes, according to the matters in which the decision has to be made).

If the reform passes, the balconies exclusively used with the appropriate unit, will not be considered as a common section of the building anymore. These balconies would be marked as „restricted common sections of the house". The owner of the appropriate unit would have the exclusive right to use such common sections.

The reform would also repeal a provision, on which basis the court could order the sale of the unit in a case, when the owner of this unit infringe upon rights of other owners by such form, that he substantially limits or prevents from exercise of the right and does not perform duties, which has been imposed by the order of court. Instead of this provision, would the reform state a right of the association to file a motion in order that the court should impose the removal of interferences, eventually also their consequences.

The proposed Bill, which is backed (supported) by Jiří Čunek, is nowadays discussed at the Government. After its long way, which the Bill would take during the legislation process, it may come in force during the year 2009.

Massimiliano Pastore