It appears that the builder’s lobby in the Condominium Management Act has prevailed. The Act was adopted during the property bubble, when all builders had plenty of work and clients. They were trying to predict who they can benefit their further business and how to squeeze more out of the foreign buyers. They were trying to find loopholes and adjust the legislation in a way so their business can be run smoothly. In my opinion one of the loopholes is the ban for convening General Meetings during the summer season.

Art.13  para 8  of Condominium Management Act explicitly states:

(8) Except in urgent cases, a General Assembly shall not be convened during:

1. the period between 15th July and 15th September;

2. days declared as official holidays;

3. days declared as holidays by the Council of Ministers;

As you can see the ban matches the summer season i.e. when all holiday property buyers are going on vacation and stay in they apartments. Oddly and surely very convenient when all condominium members are in the building a General Meeting cannot be convened. In my opinion there should be distinction between summer and winter resorts properties. Unfortunately the law doesn’t make that distinction.

Furthermore, because the owners can’t attend the GMs, they need to authorize solicitors or other third parties. Builders count on the fact that power of attorneys involve costs (depending on the way you choose to notarize the document) and apartment owners don’t bother making PoAs at all. This way the management of the condominium (usually the builder via a local limited company) creates obstacles and ensures themselves a majority on the GM and consequently adopting resolutions in builder’s favour i.e. supporting their post development business.

 

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  • Maurice Hollywood 12 July 2012 Reply

    I have been told if I do not use my apartment for more than 30 days management and maintaince fees are not due, when did this amendment come into force? Do you know if this is the case must it be done through a solicitor?
    thanks
    Maurice

    • Milen Hristov 29 July 2012 Reply

      This regulation is in force now. If you don’t reside in your apartment for more than 30 days, you need to notify the condominium manager. On that grounds you can claim that you don’t owe common parts maintenance. However if you own an apartment in aparthotel or residential building that is inhabited in most of the time, all owners can reject paying. The result for the building maintenance would be unpredictable. no solicitor is needed in this case. you just notify your condominium manager.

  • Maurice Hollywood 24 July 2012 Reply

    I would be pleased to have your comments on above

  • Darrin 14 November 2012 Reply

    Can you use a proxy vote at a general assembly if you can’t attend or is the only way by a notarized POA ?
    Also is it very expensive to get the common areas percentages verify with the courts ?
    Is it the law that the manager gives a full set of accounts at every GA ?
    If this does not happen is the GA nul in void ?
    Thanking you so much great website.
    Darrin

    • Milen Hristov 15 November 2012 Reply

      Hi Darrin, the post we are commenting on is outdated, as there were changes to the COMA right after this post was published. Your questions require a long explanation of the condominium regulations. I can put it short to your questions:

      Q: Can you use a proxy vote at a general assembly if you can’t attend or is the only way by a notarized POA ?
      A: You can authorise a lawyer (admitted to a Bulgarian Bar) with a power of attorney without notarisation. Just a simple signature.

      Q: Also is it very expensive to get the common areas percentages verify with the courts ?
      A: It depends what do you understand by ‘expensinve’. The costs depend on how many owners are there and what is the total built-up area of the building. If you provide those, I’d be able to provide you with a quote for this.

      Q: Is it the law that the manager gives a full set of accounts at every GA ?
      A: Yes, if the GA requires so.

      Q: If this does not happen is the GA nul in void ?
      A:No.

      I hope this helps.

  • pat 20 June 2013 Reply

    is it law that accounts presented to the general assembly by the manager of that building have to be audited

    • Milen Hristov 20 June 2013 Reply

      Hello Pat, there is a statutory right and obligation that the budget spendings are controlled (including audited) by the condominium controller/control board.

  • maurice hollywood 21 June 2013 Reply

    when the manager of a complex has refused since 2005 to produce audited accounts what legal action can be taken in bulgaria is it not the law to produce such accounts or can you go to the european courts

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