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 Major amendments in the Condominium Management Act

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sallyann
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PostSubject: Major amendments in the Condominium Management Act   Fri Aug 26, 2011 5:18 pm

Some new and interesting points here have a good read.

The Latest Amendment Of The Act On Management Of Apartment Ownership - August 2011

New major amendments has taken place in the Condominium Management Act. If one reads them carefully it is obvious the the lobby of the property developers has passed regulations in their favour. Here is a brief description of the major changes (not a complete list):

1. Previous wording of “closed complexes article” didn’t provide who is responsible for filing the registration of the management contract to the Land registry. The new wording is clear: the developer is responsible for this. The lobbing is crystal clear. The so called “closed complexes” are basically a tool for blackmailing and “milking” the buyers. Basically if you buy apartment in such complex, you are bonded to the developer forever. He can charge you whatever maintenance fees he likes. Be careful with this. (Art. 2 Para 2 )

2. A new regulation about small buildings has been introduced. If the building has up to 3 separate premises, owned by different people, the relations between the owners is regulated by the Ownership Act and not by the Condominium Management Act.

3. The new amendments create some new rights to the lessees of the premises(residents), which we won’t discuss in details now.

4. Owners have to pay for repairs of the common parts, but only from what is collected into the “Repair and Renovation fund”. Our interpretation on this is that owners are required to pay only from their installments made to the “Repair and Renovation fund”, and can refuse to pay interim expenses, which exceed their installments to this fund. (Art. 6 para 1 point 9)

5. There’s a slight change in wording about what expenses are paid by owners. According to the new amendments, owners pay for management costs of the common parts. The previous wording used to be “owners pay for for utilities costs“. It’s clear that a new expense is created here – the management of the condominium. It used to be in the law implicitly but now it is defined more clearly that it’s owners responsibility and is equal to the utility expenses. (Art 6 para 1 point 10)

6. Now every owner/resident of the premises in the building has to subscribe themselves into the Condominium book. Our interpretation is that the owner/resident has to ask the manager (who holds the book by law) to enter them in the book.Before the amendment, it was not specified who is responsible for subscribing the new owners/residents into the book.(art. 7 para 3 )

7. For all dog owners, a specification of what should be entered in to condominium book regarding dogs in the building – the book should include their veterinarian passport details(Art 7 para 6 )

8. Various amendments has taken place in the General Meeting rights and obligations (Art 11):

* The right for GM to distribute the utilities expenses for the common parts is removed (point 1 para 1 )
* The act of renovation of the building is no longer registered to the municipality register (point 10, letter “v”)
* The GM no longer sanctions an owner pursuant to the condominium act. (point 10, letter “k” is removed). This is removed because it has to do with simple majority resolutions (50%+1). The sanctions right still stays, but can be exercised with increased 75% majority.
* GM decides on connecting or disconnecting the building to gas and heating supplier (point 10, new letter “l”)

9. The owners don’t need to convene GM through the local mayor anymore. The previous wording is removed. The new wording is rather generic. Owners can convene General Meeting according to the provision of the law herein. We, however need to point out that owners cannot convene GM directly, but they first need to ask the manager to do it. If the manager don’t do it, then owners can convene a GM themselves, following the procedure in the law (sending invitations etc.). In short, the mayor is no longer involved.

* Each owner can convene GM in urgent cases OR at least if one year has passed from the last ordinary GM. ( new para 5). Now here the minimum % of owners for convening a GM has been removed. Each owner can now convene the GM without first asking the manager, but only in the aforesaid cases.
* A new paragraph has been added for newly established condominiums. Each owner can convene the first General meeting! There are no more requirement for 20% common parts owners. This clears out a big hole in the legislation. nobody knew before how the first GM can be convened without existing manager (elected by the GM). Now the law is clear enough. (new para 6 (old 5))

10. A new Art 13 has been created:

* GM is convened by sticking the invitation on visible and public accessible place in the building not earlier than 7 days before the meeting. In urgent matters the term is not earlier than 24 before the meeting. (new para 1)

* Owner/resident who is absent for more than 1 month, has to notify in writing the manager of the condominium and has to leave an email address or postal address on which invitations for GM to be send, as well as a phone number. (para 2 ). That’s a great improvement and making the convening procedure very light. Now we finally enter 21 century by using emails. However the regulation is creating controversy. The person who sends the email may not send them at all and still states that he has send them!! Now how an owner can prove in court that he has ( or not) received an email. That’s a situation we don’t want to be in. (para 2)

* Notification about GM convening can be done verbally (explaining the invitation text), which notification is certified in writing by the persons who are sending the invitations OR by sending the invitation by post or email if such are provided. We now see that only phone notifications has to be confirmed by second person in writing. Sending emails don’t need to be confirmed. This is huge ground for speculations by the managers who convene GMs (para 3 new)

* If the owner hasn’t provided email or postal address for receiving invitations, the owner is considered as legally invited for GM pursuant para 1 above. This means that if the owner hasn’t provided email ot postal address, the convening is considered as legal for this owner by only putting a note in a visible public place in the building. (para 4)

* A major change is removing the ban for convening GMs between 15 July and 15 September. The ban stays only for convening GMs on public holidays (para 8 )

11. Major changes in Art. 14:

* New amendment has been introduced in connection to representation of owners on GM by their relatives. The relatives need to be registered in the condominium book in order to represent the owner. (new para 1)

* A pleasant surprise is that lawyers, registered in Bar can represent owners on GM only by using normal power of attorney in writing. No notarization required! (para 3)

12. Changes in Art. 15

* A 67% quorum is not required in cases of art.17, para 2 point 1-4. This means that most of the important resolutions a quorum is not required. This doesn’t makes sense, but it’s in the law. (para one)

* If there’s no quorum, the GM is postponed by one hour and can continue only if 33% of the common parts are present. It used to continue with no matter what % is present, now 33% has to be present (para 2)

* If there’s no 33% on the postponed GM, the GM is convened on the next day. If it is non-working day, the GM is convened on the first working day after that. (para 3 new). On the next day (second postponing), the GM can continue no matter how many owners have attended.

13. Changes to Art. 16:

* The notice that the GM minutes are ready has to be stuck on a public visible place in the building. A protocol is drafted, evidencing the sticking and it is signed by the manager and one resident/owner. The protocol consists of date and time of the sitcking the notice. A copy of the minutes is provided to owners upon request. Here we have a witness of the anouncing the minutes. This is important for appealing GM resolutions, since if no such sticking is done, or no formal protocol for it is signed, there is a formal legal ground for GM to be stopped from enforcing. (para 7)

* New changes has been introduced to the start of the term for contesting the GM resolutions. The procedure for sticking the notice to the door is removed from this regulation. The terms starts from the moment of sticking the minutes on the public place in the building. This clause saves time to the manager. Instead of going to each apartment door, they only make one notice in the building. (para 9)

14. Changes in all points of para 2 of Art 17. This concerns the majority for adoption of resolution on important matter:

* 100% majority is required for construction works for new floors, building attachments or establishing building rights in the common condominium land.
* 75% majority is required for removing an owner from its property for not more than 3 years period. The % of common parts of the removed owners are not added to those 75% and and taken in consideration.
* 75% majority is required for usefull expenses and receiving of credits.
* Few more points are created, specifying majority for resolution on different condominium matters.

15. I’m making this a separate point since the information is important and concerns the common parts calculation – one of the trickiest parts in condominium management. As I wrote before, developers are playing hard with this matter and sometimes lie about what common parts are owned by them and owners. Since a proper credible information about the common areas cannot be obtained from any government or local authority, this issue becomes very serious. The new paragraphs 4 , 5 and 6 try to bring some light to the subject, but in my opinion it is not enough. It’s unofficial translation, so I apologize if there’s nonsense in some sentences. I’m waiting for the official government translation into English.

(4) (New – SG. 57 of 2011) When the ownership documents of the individual objects in buildings in the condominium property are not specifying the respective shares of common areas, for the purposes of this law, the ideal parts for each individual site is defined as the ratio between the sum of the size of the individual object and storerooms, assigned to the object, divided by the sum of the area of ??all individual objects and assigned storage areas, thereby resulting number is converted into percentages.
(5) (new – SG. 57 of 2011) Under paragraph. 4 the established the ideal parts of common areas are based on data submitted by the owners or information under Art. 23, para. 1, p. 10, where:
1. sum of the percentages of undivided shares of the owners in common areas is not equal to 100;

2. management is carried in each input, and the sum of the percentages of undivided shares to the owners of the common parts in the input is equal to 100.
(6) (new – SG. 57 of 2011) all common parts set out under par. 4 and 5 are approved by the General Assembly by a majority of not less than two thirds of independent objects in the building entrance. The General Assembly may refuse to approve certain common parts only if an error in calculation.

Now, we can see that when the deed doesn’t state percentage, the calculation of each owner common parts percentage is calculated as a ratio between the total area of the owners premises (apartment, basement etc), divided to the sum of all areas of all individual premises the building. The ratio is converted to percentage and that is the common parts percentage which owner can use to vote on GM.

Note on the Owners associations

There are various changes in the law regarding the owners associations, registered according to this law. I’m not going in details about them because I think owners associations are rare in practice. This doesn’t concern the Owners Association, registered pursuant the Not For Profit Organizations Act.

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BGTRAVELLER
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PostSubject: Re: Major amendments in the Condominium Management Act   Sat Aug 27, 2011 10:37 pm

Thank you Sally its always good to keep up with the latest legal information especially in Bulgaria where it changes at the drop of a hat
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LisA
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PostSubject: Re: Major amendments in the Condominium Management Act   Sat Oct 01, 2011 1:29 pm

Thank you very much for this I have been looking for something along these lines for a few weeks now and thought I would have to pay to join on another forum/site to be able to read it.
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PostSubject: Re: Major amendments in the Condominium Management Act   Mon Apr 11, 2016 11:49 am

Amendments in the Condominium Ownership Management Act of Bulgaria.  in Force from 1st of April 2016





OLD Version


Art 6. (1)Owners shall be obliged:
P. 5not to engage in activities in their individual unit or in any part thereof which modify rooms, spaces or parts thereof, intended for common use and not to disturb the architectural appearance, load-bearing capacity, structural stability, fire safety or safe use of the building;


P. 9. to contribute to the costs of major repairs, routine or urgent repair works, reconstruction, re designation and renovation of the common areas of the building in a proportion corresponding to their undivided shares in the common areas;

P. 12. to provide access to their independent unit or part thereof for essential surveying, design, measurement, construction and assembly works related to maintenance, repair, reconstruction, re designation and renovation of the common areas or of other rooms and for checking of the condition of installations and structural elements of the building;


P. 17. to fulfil other obligations stipulated in the condominium regulations.


Art. 7. (3) Entries in the register of owners shall include the forenames, patronymics and surnames of the owner or user - for private persons and in case when the owner or the user is a company or a sole trader - trade name, BULSTAT or UIC number.



Art. 11. (1) The General Assembly:
P. 8. shall adopt a plan for repair, reconstruction and re designation works and other activities in the common areas of the building, including on implementation of measures prescribed in the technical certificate report or other prescriptions of the competent authorities and shall approve the annual report of the Managing Council (Manager) on the implementation thereof;

P. 10. shall adopt decisions in connection with:
c) renovation of the building.



P. 15. may adopt a decision not to elect the Supervisory council/Control Board or Supervisor.

Art. 13. (1) The general assembly shall be convened by invitation signed by the persons, who are convening the general assembly, posted at a prominent and generally accessible location at the building entrance not later than 7 days prior to the date of the meeting, or at least 24 hours before the meeting in urgent cases. The date and hour shall certainly be marked on the invitation by the persons, who are convening the general assembly, of which a protocol shall be drawn up.

(2) Any owner or user who would not use his individual unit or who would be absent for more than a month, shall notify in writing the manager or the chairperson of the managing council, indicating an e-mail or an address for forwarding invitations for convening the general assembly, as well as a telephone number.

(3) Communication under Paragraph (2) of the convening of the general assembly may be effected by verbally announcing the content of the invitation, to be evidenced by signatures of the persons, who are convening the general assembly, or by delivery of the invitation to an address, including by e-mail, if such has been indicated.

(4) In case the person under Paragraph (2) would have failed to indicate an e-mail or an address for forwarding invitations for convening the general assembly or a telephone number, he shall be considered informed of the convening of the general assembly under the procedure of Paragraph (1).

Art. 15. (1) A general assembly shall be held if it is attended, in person or through representatives, by the owners of at least 67 percent of undivided shares of the common areas of the condominium, except for the cases under Art. 17, Paragraph (2), Items 1-4.

Art. 16. (5) The date and location of the general assembly, the agenda, the persons present and the undivided shares of the condominium which they represent, the essence of statements made, the motions submitted and the decisions adopted shall be recorded in the protocol.

(7) Within the term stipulated in Paragraph (6) the chairperson of the managing council (manager) shall post at a prominent and generally accessible location at the building entrance a notice of the finalization of the minutes. A protocol shall be drawn up of the posting of the notice by the chairperson of the managing council (manager) and one owner, user or occupant, wherein the date, hour and location of posting the notice shall be indicated. Copy of such protocol shall be provided to owners, users or occupant upon request.


Art. 17. (2) The general assembly of owners shall adopt decisions:
P. 5. for renovation, overhaul and for absorption of resources from the European Union funds and/or the public or municipal budget, for grants and subsidies and/or own resources or from other funding sources - by majority of no less than 67 per cent of the undivided shares of the common areas;

P. 6. for positioning of advertising or technical installations on the building, for interconnection of the building to the heat transmission, water, electric power and natural gas supply network and for discontinuing the heating power and gas supply to the condominium - by majority of no less than 67 per cent of the undivided shares of the common areas.



Art. 19. (8) By decision of the general assembly, adopted by majority of over 50 percent of the undivided shares of the common areas of the condominium, the powers of the managing council (manager) or a part thereof may be assigned to natural persons, who are not owners. The contract of assignment shall be entered into by an individual, authorized by the general assembly.


Art. 23. (1) The managing council (manager) shall:


P. 12. implement other powers assigned to the managing council (manager) by the general assembly;

(2) At the end of its mandate the managing council (manager) shall submit a written report to the general assembly. The report and the minutes of managing council meetings shall be made public under the procedure of Article 16, Paragraph (7).


Art. 25. (1) 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 repair and renovation of buildings under condominium ownership arrangements. The association shall be a legal entity established under this Act.

(4) An association of owners may be established in two or more entrances of the building. In such a case the association shall be established by owners, representing at least 67 percent of the undivided shares of the common areas of the entrance (entrances). If the sum of the percentages of the undivided shares of the owners in the common areas of the entrance (entrances) is not equal to 100, the provisions of Article 17, Paragraphs (5) and (6) shall apply.


(6) If in the course of the year the association carries out activities only under Paragraph (1) or would have no activity, it need not apply the Accountancy Act.

Art. 27. (6) The minutes of the constituent assembly and the adopted agreement to establish the association shall be compiled in two identical copies and shall be signed by all members of the association or by their representatives.

Art. 29. (2) The following shall be attached to the application referred to in Paragraph (1) /about entering the association in a public register/:
P. 2. a copy of the minutes of the constituent assembly certified by the chairperson of the managing council (manager);

P. 3. a copy of the agreement certified by the chairperson of the managing council (manager).

Article 30. (1) Membership of the association shall be transferred to the new owners of an independent unit on change of ownership.


(2) An owner may not terminate his or her membership in the association if a condominium project for the use of European Union and/or state or municipal budget funding, grant funding and subsidies or own resources has been approved for renovation of the building or parts thereof.


Art. 33. (2) The general assembly of the association shall adopt decisions:
P.5. for renovation, overhaul and for absorption of resources from the European Union funds and/or the public or municipal budget, from grants and subsidies and/or own resources or from other funding sources, as well as for dissolving the association - by majority of no less than 67 per cent of the undivided shares of the common areas, represented in the association;

P.6. for positioning of advertising or technical installations on the building, for interconnection of the building to the heat transmission, water, electric power and natural gas supply network and for discontinuing the heating power and gas supply to the condominium - by majority of no less than 67 per cent of the undivided shares of the common areas.


Art. 34. (2) The managing council (manager) shall:


P. 9. implement other powers assigned to the managing council (manager) by the general assembly.

(10) By decision of the general assembly of the association, adopted by majority over 50 percent of the represented undivided shares of the common areas in the association, the powers of the managing council (manager) may be assigned to natural persons, who are not owners. The contract of assignment shall be executed by an individual, authorized by the general assembly of the association.


Art. 40. (2) The repeal application shall be submitted to the district court with jurisdiction over the location of the condominium within 30 days of communicating the decision under the procedure of Article 16, Paragraph (7).

Art. 43. (1) Any owner may request the repeal of an unlawful act of the managing council (manager).
(2) The application shall be submitted to the district court with jurisdiction over the location of the condominium within 14 days of the communication under the procedure of Article 16, Paragraph (7).

Art. 44. (3) The name of the association, the address, the term, for which it was established, the purposes of activity, the undivided shares of the common areas, represented in the association, the names and addresses of the members of the managing council (manager) and the manner of representation shall be recorded in the register.

Art. 46b. The managers or chairpersons of managing councils of buildings or separate entrances under condominium ownership arrangements shall submit within one month of their election a notice to the municipal or district administrations. Such notice shall contain the names, address and telephones of the members of the managing council or of the manager and the address of the building under condominium ownership arrangements, as well as a mailing address.

Art. 48. (1) Repairs, renewals, reconstruction and re designation of common areas or replacement of common installations and equipment shall be implemented by decision of the general assembly of owners.

(3) Expenditure on repairs, renewals, reconstruction and re designation of the common areas, for which a decision has been taken by the general assembly of owners, shall be distributed between the owners of independent units in proportion to the undivided shares in the common areas of the building which they own.

(4) Decisions to implement repairs, renewals, reconstruction and re designation of common areas between individual condominiums shall be adopted jointly by the joint general assembly under the procedure set out in Article 18 herein.

Art. 49. (4) The mayor of the municipality shall conduct an investigation and shall issue an order obliging the owners to implement the repairs specified in Paragraph (1) within a certain term. The order shall be brought to the notice of the chairperson of the managing council (manager) and shall be subject to appeal before the administrative court with jurisdiction over the location of the condominium.

(5) Where the order specified in Paragraph (4) is not implemented within the prescribed term or advance implementation of the works has been allowed, the urgent repair shall be implemented by the mayor of the municipality or district. In these cases, a writ of implementation shall be issued to the benefit of the municipality or district on the basis of the order and the payment documents on the expenditure incurred in order to collect the debts under the procedures set out in the Code of Civil Procedure.

Art. 51. (1) Expenditure on management and maintenance of the common areas of the condominium shall be distributed equally in proportion to the number of owners, users and occupants.

Art. 52. (3) A technical certificate shall be compiled for:
1. completed new buildings: before putting the buildings into operation;
2. (withdrawn);
3. (withdrawn).

Art. 56a. For non-performance of the duty under Article 44, Paragraph (1) or Article 47, Paragraph (2) the mayor of the municipality shall be sanctioned by a fine of between BGN 100 and BGN 500.
 
Art. 57. (1) Ascertainment of the infringements shall be described in a memorandum compiled by the managing council. Where a managing council has not been elected in the condominium, the memorandum shall be compiled by the manager and two owners and/or users. The memorandum of ascertainment shall contain data about the person who has perpetrated the infringement, a description and the time and date of the infringement.

(2) In cases of ascertained infringement by a member of the managing council (manager), the memorandum shall be drafted by the control board. Where no control board has been elected in the condominium, the memorandum shall be compiled by the controller and two owners and/or users.

(3) The memorandum of ascertainment shall be compiled in three identical copies, one each for the chairperson of the managing council (manager), the perpetrator and the municipal or district administration. After the memorandum is compiled the chairperson of the managing council (manager) shall immediately place it at the disposal of the municipal or district administration.


SUPPLEMENTARY PROVISION

§ 1. In the meaning of this Act:
P. 10. "Renovation" shall be considered to mean construction and assembly works, related to fulfillment of any of the essential requirements under Article 169, Paragraphs (1) and (2) of the Spatial Development Act, carried out during operation and affecting structural elements of the project, the fencing structures and/or elements of buildings, technical infrastructure installations and/or elements - heating, ventilation, AC, electric, water supply, sewerage and other installations.

P. 12. "Beneficial expenditure" shall be considered to mean expenditure on reconstruction and repair works on the common areas, which is not prescribed in a statutory manner and is outside the costs of essential and urgent repairs and renovation.


New Version

Art 6. (1)Owners shall be obliged:
P.5not to engage in repair activities in their individual unit or in any part thereof which lead to the deterioration of project performance characteristics of construction products, changed/replaced and/or initially used as long as/or activities which modify rooms, spaces or parts thereof, intended for common use and not to disturb the architectural appearance, load-bearing capacity, structural stability, fire safety or safe use of the building;

P. 9. to contribute to the costs of major repairs, routine or urgent repair works, reconstruction, re designation and major renovation of the common areas of the building in a proportion corresponding to their undivided shares in the common areas;

P. 12. to provide access to their independent unit or part thereof for essential surveying, design, measurement, construction and assembly works related to maintenance, repair, reconstruction, re designation, major repair or major renovation of the common areas or of other rooms and for checking of the condition of installations and structural elements of the building;

P. 17. (new from 2016) maintain common areas of the building and their own individual item in a technical condition that correspond with the main requirements of the art. 169, para.1 of the Spatial Development Act ;

P. 18. (new from 2016) to take care for the safe operation of all facilities and installations in the building;

P. 19. (new from 2016) not to perform activities on the territory of the common parts of the building including the facade that may lead to the damage of their integrity and architectural appearance, load-bearing capacity, structural stability, fire safety or safe use of the building;

P. 20. (previous p. 17) to fulfill other obligations stipulated in the condominium regulations.

Art. 7. (3)Entries in the register of owners shall include the forenames, patronymics and surnames of the owner or user - for private persons and in case when the owner or the user is a company or a sole trader - trade name, BULSTAT or UIC number, as the register shall also include the email address of the owner or the user if the latter has such.

Art. 11. (1) The General Assembly:
P. 8. shall adopt a plan for repair, reconstruction and re designation works and other activities in the common areas of the building, including on implementation of measures prescribed in the technical certificate report or other prescriptions of the competent authorities and shall approve the annual report of the Managing Council (Manager) on the implementation thereof;

P. 10. shall adopt decisions in connection with:
c) major repair and/or major renovation of the building;

P. 15. (new from 2016) shall adopt a decision about assigning of a task for preparing of a technical passport for existing buildings and approves the contract with the contractor within the legal period for preparing of the technical passport, accepts the report about the survey and evaluation of technical characteristics and the technical passport of the building;

P. 16. (previous p. 15) may adopt a decision not to elect the Supervisory council/Control Board or Supervisor.

Art. 13. (1) The general assembly shall be convened by invitation signed by the persons, who are convening the general assembly, posted at a prominent and generally accessible location at the building entrance not later than 7 days prior to the date of the meeting, or at least 24 hours before the meeting in urgent cases. The date and hour of posting shall certainly be marked on the invitation by the persons, who are convening the general assembly, of which a protocol shall be drawn up. The general assembly can be scheduled and be held at the earliest on the eighth day after the date of posting of the invitation and in urgent cases - not earlier than 24 hours after posting of the invitation.

(2) Any owner or user who would not use his individual unit or who would be absent for more than a month, shall notify in writing the manager or the chairperson of the managing council, indicating an e-mail or an address in Bulgaria for forwarding invitations for convening the general assembly, as well as a telephone number.

(3) Communication under Paragraph (2) of the convening of the general assembly may be effected by verbally announcing the content of the invitation, to be evidenced by signatures of the persons, who are convening the general assembly, or by delivery of the invitation to an address in Bulgaria, including by e-mail, if such has been indicated.

(4) In case the person under Paragraph (2) would have failed to indicate an e-mail or an address in Bulgaria for forwarding invitations for convening the general assembly or a telephone number, he shall be considered informed of the convening of the general assembly under the procedure of Paragraph (1).

Art. 15. (1) A general assembly shall be held if it is attended, in person or through representatives, by the owners of at least 67 percent of undivided shares of the common areas of the condominium, except for the cases under Art. 17, Paragraph (2), Items 1-4 and 7.

Art. 16. (5) The minutes shall include the date and location of the general assembly, the agenda, the persons present and the undivided shares of the condominium which they represent, the number if the individual item, the way of voting of each person - "pro", "against" or "abstained", person's signature, the essence of statements made, the motions submitted and the decisions adopted.

(7) Within the term stipulated in Paragraph (6) the chairperson of the managing council (manager) shall post at a prominent and generally accessible location at the building entrance a notice of the finalization of the minutes. A protocol shall be drawn up of the posting of the notice by the chairperson of the managing council (manager) and one owner, user or occupant, wherein the date, hour and location of posting the notice shall be indicated. Copy of the protocol of the held general assembly certified with "true copy" and attachments to the protocol shall be provided to owners, users or occupant, and in cases mentioned in art. 13, para. 2 shall be sent to the specified email or address in Bulgaria. When in cases under art. 13, para.2 the person has not specified his email or address in Bulgaria for sending of a copy of the protocol, he shall be considered notified by posting a notice.

Art. 17. (2) The general assembly of owners shall adopt decisions:
P. 5. for major renovation, overhaul and for absorption of resources from the European Union funds and/or the public or municipal budget, for grants and subsidies and/or own resources or from other funding sources - by majority of no less than 67 per cent of the undivided shares of the common areas;

P. 6. for positioning of advertising or technical installations on the building, for interconnection of the building to the heat transmission, water, electric power and natural gas supply network and for discontinuing the heating power and gas supply to the condominium - by majority of more than 50 per cent of the undivided shares of the common areas.

P. 7. (new from 2016) about authorizing the Management Board (the Manager) with powers or part of them as long as about assigning of activities regarding maintenance of common parts of the building to companies or private persons who are not the owners - by majority of no less than 67 per cent of the undivided shares of the common areas.

Art. 19. (8) By decision of the general assembly, adopted by majority of over 67 percent of the undivided shares of the common areas of the condominium, the powers of the managing council (manager) or a part thereof may be assigned to natural persons or companies, who are not owners. The contract of assignment should be approved by majority of over 67 percent of the undivided shares of the common areas of the condominium and shall be entered into by an individual, authorized by the general assembly for the period not exceeding 2 years. The contract of assignment valid for more than 2 year shall be considered valid for 2 years and a clause providing automatic renewal of the contract or its transformation into a term less contract is considered invalid. The authorized natural person or company has the rights, obligations and responsibilities of the Management board (the Manager) under the COMA for the period of validity of the contract.

Art. 21.(4) (new from 2016) For a newly-built condominium the election of the Management board (the Manager) should be held within 6 months term after receiving of the Certificate of usage of the building.

Art. 23.(1) The Managing Council (Manager) shall:
P.12. (new from 2016) issued to owners document about presence or absence of obligations to the condominium upon request;

P. 13. (previous p. 12) implement other powers assigned to the managing council (manager) by the general assembly.

(2) The managing council (manager) shall submit a report to the general assembly each year and at the end of its mandate. The report and the minutes of managing council meetings shall be made public under the procedure of Article 16, Paragraph (7).

Art. 25. (1) 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 repair and/or major renovation of buildings under condominium ownership arrangements. The association shall be a legal entity established under this Act.

(4) An association of owners may be established in two or more entrances of the building or several buildings in a condominium built as connected construction. In such a case the association shall be established by owners, representing at least 67 percent of the undivided shares of the common areas of the entrance (entrances or buildings). If the sum of the percentages of the undivided shares of the owners in the common areas of the entrance (entrances or buildings) is not equal to 100, the provisions of Article 17, Paragraphs (5) and (6) shall apply.

(6) If in the course of the year the association carries out activities only under Paragraph (1) or would have no activity, it need not apply the Accountancy Act and the Statistics Act.

Art. 27. (6) The minutes of the constituent assembly and the adopted agreement to establish the association shall be compiled in one copy and shall be signed by all members of the association or by their representatives.

Art. 29. (2) The following shall be attached to the application referred to in Paragraph (1) /about entering the association in a public register/:
P. 2. a copy of the minutes of the constituent assembly certified with "true copy" by the chairperson of the managing council (manager);

P. 3. a copy of the agreement certified with "true copy" by the chairperson of the managing council (manager).

Article 30. (1) Membership of the association shall be transferred to the new owners of an independent unit on change of ownership, as the old owner is responsible for obligations to the association became due before the change of the ownership, unless other was agreed in regards with the transfer of the ownership right.

(2) An owner may not terminate his or her membership in the association if a condominium project for the use of European Union and/or state or municipal budget funding, grant funding and subsidies or own resources has been approved for major repair and/or major renovation of the building or parts thereof.

Art. 33. (2) The general assembly of the association shall adopt decisions:
P.5. for major renovation, overhaul and for absorption of resources from the European Union funds and/or the public or municipal budget, from grants and subsidies and/or own resources or from other funding sources, as well as for dissolving the association - by majority of no less than 67 per cent of the undivided shares of the common areas, represented in the association;

P.6. for positioning of advertising or technical installations on the building, for interconnection of the building to the heat transmission, water, electric power and natural gas supply network and for discontinuing the heating power and gas supply to the condominium - by majority of more than 50 per cent of the undivided shares of the common areas.

P. 7. (new from 2016) about authorizing the Management Board (the Manager) with powers or part of them as long as about assigning of activities regarding maintenance of common parts of the building to companies or private persons who are not the owners - by majority of no less than 67 per cent of the undivided shares of the common areas, represented in the association.

Art. 34. (2) The managing council (manager) shall:
P.9. (new from 2016) issued to owners document about presence or absence of obligations to the association upon request;

P. 10. (previous p.9) implement other powers assigned to the managing council (manager) by the general assembly.

(10) By decision of the general assembly of the association, adopted by majority over 67 percent of the represented undivided shares of the common areas in the association, the powers of the managing council (manager) may be assigned to natural persons or companies, who are not owners. The contract of assignment should be approved by majority of over 67 percent of the represented undivided shares of the common areas in the association and shall be executed by an individual, authorized by the general assembly of the association for the period not exceeding 2 years. The authorized natural person or company has the rights, obligations and responsibilities of the Management board (the Manager) under the COMA for the period of validity of the contract.

Art. 40. (2) The repeal application shall be submitted to the district court with jurisdiction over the location of the condominium within 30 days of receiving of the decision under the procedure of Article 16, Paragraph (7).

Art. 43. (1) Any owner may request the repeal of an unlawful act of the managing council (manager).
(2) The application shall be submitted to the district court with jurisdiction over the location of the condominium within 14 days of the receiving of the act under the procedure of Article 16, Paragraph (7).

Art. 44. (3) The name of the association, the address, the term, for which it was established, the purposes of activity, the undivided shares of the common areas, represented in the association, the names, emails and addresses of the members of the managing council (manager) and the manner of representation shall be recorded in the register.

Art. 46b. The managers or chairpersons of managing councils of buildings or separate entrances under condominium ownership arrangements shall submit within one month of their election a notice to the municipal or district administrations. Such notice shall contain the names, email, address and telephones of the members of the managing council or of the manager and the address of the building under condominium ownership arrangements, address in Bulgaria and a copy of the protocol about selection of the Management board (Manager) certified with "true copy" and attachments to the protocol.

Art. 48. (1) Repairs, major renewals, reconstruction and re designation of common areas or replacement of common installations and equipment shall be implemented by decision of the general assembly of owners.

(3) Expenditure on repairs, major renewals, reconstruction and re designation of the common areas, for which a decision has been taken by the general assembly of owners, shall be distributed between the owners of independent units in proportion to the undivided shares in the common areas of the building which they own.

(4) Decisions to implement repairs, major renewals, reconstruction and re designation of common areas between individual condominiums shall be adopted jointly by the joint general assembly under the procedure set out in Article 18 herein.

Art. 49. (4) The mayor of the municipality or of the district or his proxy within the term of one month after the notification under Paragraph (3) shall conduct an investigation and shall issue an order obliging the owners to implement the repairs specified in Paragraph (1) within a certain term, but no later than 3 months. The order shall be brought to the notice of the chairperson of the managing council (manager) and shall be subject to appeal before the administrative court with jurisdiction over the location of the condominium.

(5) Where the order specified in Paragraph (4) is not implemented within the prescribed term or advance implementation of the works has been allowed, the urgent repair shall be implemented by the mayor of the municipality or district within the term of three months after expiring of the term for the repair under Paragraph (4). In these cases, a writ of implementation shall be issued to the benefit of the municipality or district on the basis of the order and the payment documents on the expenditure incurred in order to collect the debts under the procedures set out in the Code of Civil Procedure.

Art. 51. (1) Expenditure on management and maintenance of the common areas of the condominium shall be distributed equally in proportion to the number of owners, users and occupants and members of their households regardless to the number of the floor on which they live.

Art. 52. (3) (withdrawn)

Art. 54a (new from 2016) (1) Where a decision about performing of activities under art. 6, para. 1, p. 12 was taken by the general assembly of owners and/or by the association of owners and in case of owner's refusal to provide access to his real estate the major of the municipality or of the district or his authorized officer shall make a check and issue an order that shall oblige the owner to provide the required access. The order shall be brought to the notice of the owner and shall be subject to appeal before the administrative court with jurisdiction over the location of the condominium.

(2) The order under para. 1 shall be issued within one month after submitting of the request by the Chairman of the Management board (manager), accompanied by a written report about non-providing of access compiled by the Management board (manager) and two owners.

(3) The implementation of the order under par. 1 is administered under the Administrative Procedure Code.

Art. 56. (4) (new from 2016) A chairperson of a managing council (Manager) who fails to fulfil his obligations under art. 49, para. 1-2 shall be subject to a fine of between BGN 500 and BGN 1000.

Art. 56. (5) (new from 2016) Where a natural person or a company authorized with the rights of the Management board (Manager) under art. 19, para. 8 and art. 34, para 10 infringes or fails to fulfil his or her obligations under this Act as the Management board (Manager) if the infringement does not constitute a criminal act he or she shall be subject to a fine of between BGN 800 and BGN 1500 for a natural person or to a pecuniary sanction between BGN 1000 and BGN 2000 for a company.

Art. 56a. (1)For non-performance of the duty under Article 44, Paragraph (1) or Article 47, Paragraph (2) the mayor of the municipality or of the district shall be sanctioned by a fine of between BGN 100 and BGN 500.

(2) (new from 2016) For non-performance of the duty under Article 49, Paragraph (4) or Paragraph (5) the mayor of the municipality or of the district shall be sanctioned by a fine of between BGN 300 and BGN 700.

Art. 57. (1) Ascertainment of the infringements shall be described in a memorandum compiled by the managing council. Where a managing council has not been elected in the condominium, the memorandum shall be compiled by the manager and two owners and/or users, and in case of refusal of the manager the memorandum shall be compiled by three owners and/or user. The memorandum of ascertainment shall contain data about the person who has perpetrated the infringement, a description and the time and date or period and place of the infringement.

(2) In cases of ascertained infringement by a member of the managing council (manager) or of the control board, the memorandum shall be drafted by the control board. Where no control board has been elected in the condominium, the memorandum shall be compiled by three owners and/or users.

(3) The memorandum of ascertainment shall be compiled in three identical copies, one each for the chairperson of the managing council (manager) or one of the owners who took part in compiling of the report, the perpetrator and the municipal or district administration. After the memorandum is compiled the chairperson of the managing council (manager) shall immediately place it at the disposal of the municipal or district administration.

SUPPLEMENTARY PROVISION

§ 1. In the meaning of this Act:
P. 10. "Major renovation" shall be considered to mean "major renovation" under the Spatial Development Act.
P. 12. "Beneficial expenditure" shall be considered to mean expenditure on reconstruction and repair works on the common areas, which is not prescribed in a statutory manner and is outside the costs of essential and urgent repairs and major renovation.

P. 17. (new from 2016) "Address in Bulgaria" shall be considered to mean correspondence address in Bulgaria specified by the owner, user or occupant where the owner, user or occupant wants to receive messages/notifications. Address in Bulgaria may be different from the present or permanent address.

P. 18. (new from 2016) "Major repair" shall be considered to mean "major repair" under the Spatial Development Act.
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Andy
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PostSubject: Re: Major amendments in the Condominium Management Act   Mon Apr 11, 2016 5:02 pm

Thanks for the update chops
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