Promulgated, State Gazette No. 6/23.01.2009, effective 1.05.2009

Chapter One

GENERAL DISPOSITIONS
Section I

Subject

Scope
Article 1. This Act shall regulate public relations involving the management of common areas of buildings under condominium ownership arrangements and the rights and obligations of the owners and occupants of individual dwelling units or parts thereof.

Special arrangements for the management of Common Areas
Article 2. (1) The management of common areas of buildings under condominium ownership arrangements in closed-type residential complexes shall be agreed by written contract with notarially certified signatures, concluded between the investor and the owners of individual units.

(2) The contract referred to in paragraph (1) shall be registered in the record of each individual unit and its validity shall be carried over to any persons to whom the unit is subsequently transferred.

Exceptions
Article 3. The provisions of Articles 42, 43 and 44 of the Ownership Act shall apply to the management of common areas of buildings under condominium ownership arrangements with up to three individual units, where the units belong to more than one owner.

Designation of Adjoining Area
Article 4. (1) The area adjoining a building shall be designated in the course of restructuring of neighbourhoods with residential complex developments and in cases where a building under condominium ownership arrangements cannot be designated as a separate regulated land plot under Spatial Development Act procedures.

(2) In the cases referred to in paragraph (1) the adjoining area shall be designated by the Mayor of the municipality on his or her own initiative or on request of the interested parties under procedures stipulated in an ordinance of the Minister of Regional Development and Public Works.

(3) On designating the adjoining area the Mayor of the municipality shall issue an order, accompanied by a plan showing the boundaries and functional designation of the area.

(4) The designated adjoining area shall be provided for maintenance and use by the respective condominium under conditions and procedures set out in a municipal council ordinance.
Section II

Rights and obligations of owners and occupants of independent units or parts thereof

Rights of Owners and Occupants
Article 5. (1) The owners of independent units in a building under condominium ownership arrangements, hereinafter referred to as “owners”, shall have the right to:

1. use the common areas of the building in accordance with their designation;

2. participate in the management of the condominium.

(2) Occupants of a building under condominium ownership arrangements shall have the right referred to in item 1 of paragraph (1) and the right to participate in the management of the condominium in an advisory capacity.

Obligations of Owners and Occupants
Article 6. (1) Owners shall be obliged:

1. not to obstruct the other owners and occupants from using the common areas of the building;

2. not to cause damage to other sites and common areas of the building;

3. not to occupy common areas of the building;

4. not to engage in activities or actions in their individual unit or in any part thereof which cause inordinate inconvenience to other owners and occupants;

5. not 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;

6. to fulfil the requirements set out in the respective statutory regulations when keeping animals in their individual units and not to cause inconvenience to their immediate neighbours;

7. not to infringe good manners;

8. to comply with the decisions of the condominium management bodies;

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

10. to contribute to expenditure on consumables for the maintenance of the common areas;

11. to comply with sanitary and hygiene standards;

12. to provide access to their independent unit or part thereof for essential surveying, design, measurement, construction and assembly works related to maintenance, major repairs, routine or urgent repairs, reconstruction, redesignation and renovation of the common areas or of other rooms;

13. to provide assistance for firefighting or emergency rescue activities by the competent authorities inside the building and in the area around it;

14. to compensate for any damage caused to other units in the building where such damage results from repairing damage to the owner’s own independent unit or part thereof;

15. to use the common areas of the building in accordance with procedures set out in the condominium regulations;

16. to enter the members of their households and occupants in the register of owners;

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

(2) The occupants of a building under condominium ownership arrangements shall have the obligations stipulated in paragraph (1), with the exception of those set out in item 5 and item 9.

Register of Owners
Article 7. (1) A register of owners shall be kept in each building or entrance under condominium ownership arrangements.

(2) Entries in the register shall include the forenames, patronymics and surnames of the owners, the members of their households, the independent units and the initial dates of occupation.

(3) Entries shall be made within 15 days of acquisition of the right of ownership and within 15 days of the initial date of occupation in the case of occupants.

(4) Access to data in the register shall be given to the Managing Council (Manager), the Control Board (Controller), owners (with regard to their own data) and the authorities of the Interior Ministry, the Ministry of Regional Development and Public Works, the municipal or district administration and the National Veterinary Service.

(5) Data from the register of owners shall be provided by the Managing Council (Manager) on submission of notification or application for an entry to be made in a register of buildings under condominium ownership arrangements.

(6) The register of owners shall have an annexe in which every owner or occupant shall enter animals owned or kept.

(7) The standard form for the register of owners shall be endorsed by the Minister of Regional Development and Public Works.
Chapter Two

CONDOMINIUM MANAGEMENT
Section I

General Rules

Scope of Management
Article 8. (1) Management shall encompass the procedures and control over the use and maintenance of common areas and compliance with house rules in a building under condominium ownership arrangements, as well as control on the fulfilment of obligations by owners and occupants.

(2) Where a building has more than one entrance, management may be implemented separately in each entrance.

Forms of management
Article 9. Condominiums shall be managed by a General Assembly or Association of Owners.
Section II

General Assembly of owners

Management bodies
Article 10. Management bodies shall comprise the following:

1. General Assembly;

2. Managing Council (Manager).

Powers of the General Assembly
Article 11. (1) The General Assembly:

1. shall adopt, amend and supplement condominium regulations;

2. shall elect and dismiss members of the Managing Council (Manager) and a cashier;

3. shall elect and dismiss members of the Control Board (Controller);

4. shall adopt an annual income and expenditure budget and approve the annual reports of the Managing Council (Manager) and of the Control Board (Controller);

5. shall determine the amount of cash contributions to the management and maintenance costs of the common areas of the building;

6. shall distribute the costs of consumables for the common areas of the building;

7. shall determine the amount of cash contributions to the Repair and Renovation Fund;

8. shall adopt a plan for repair, reconstruction and redesignation 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;

9. shall adopt amendments to the plan for repairs where unforeseen expenditure is incurred;

10. shall adopt decisions in connection with:

a) incurring essential or urgent expenditure on the maintenance or restoration of the common areas and beneficial expenditure and for determining the amount of expenditure required to implement the instructions in the technical certificate;

b) letting or provision of common areas of the building free of charge in compliance with fire and accident safety standards;

c) renovation of the building, which shall be entered in a public register;

d) undertaking preparatory actions to establish the right of use, construction, addition of an additional storey, extension or change in the designation of common areas in compliance with the requirements of acting special legislation;

e) placing of advertisements or technical installations on the building;

f) eviction of an owner or occupier from the building under the procedure set out in Article 45 of the Ownership Act for a certain period not exceeding three years;

g) implementation of activities in connection with heating, water supply or other activities in cases where this is stipulated by other laws;

h) establishing conditions for access of disabled persons to the condominium;

i) use of the common areas of the building and the adjacent area in case of disputes and to ensure compliance with the condominium regulations and sanitary and hygiene standards;

j) taking action to sanction an owner or occupant under the procedures set out in this Act;

11. may adopt a decision to assign maintenance works on the common areas of the building to a legal entity or natural person in return for remuneration, also establishing the specific powers of the Managing Council (Manager), which can be assigned for implementation by these persons;

12. may adopt a decision to receive loans, grants and subsidies;

13. may adopt a decision to waive financial liabilities and defer or reschedule instalments;

14. may authorise the Managing Council (Manager) to adopt a decision to implement urgent repairs or incur urgent expenditure.

(2) The General Assembly shall not refuse to adopt a decision to incur expenses which are necessary for the maintenance or restoration of the common areas of the building.

(3) The General Assembly shall be obliged to adopt internal regulations in the condominium.

(4) Decisions adopted by the General Assembly shall also involve new owners of independent units in the condominium.

(5) The Minister of Regional Development and Public Works shall issue sample condominium regulations.

Initiative for Convening the General Assembly
Article 12. (1) The General Assembly shall be convened at least once a year by:

1. the Managing Council (Manager);

2. the Control Board (Controller)

(2) The General Assembly may also be convened on request in writing by owners who have at least 20 undivided shares in the common areas of the building.

(3) The request referred to in paragraph (2) shall be addressed to the Managing Council (Manager) which/who shall convene the General Assembly within 10 days of its reception.

(4) When the Managing Council (Manager) fails to convene the General Assembly within the term referred to in paragraph (3), the request shall be addressed to the Mayor of the municipality or district. The Mayor shall convene the General Assembly in accordance with the legal procedures within 14 days of receipt of the request.

(5) In the case of new condominium ownership arrangements, the first General Assembly shall be convened within six months of its establishment by owners of individual units who have at least 20 undivided shares in the common areas. Where the General Assembly has not been convened within the aforementioned term, it shall be convened in accordance with the conditions and procedures stipulated in paragraph (3) and paragraph (4).

Procedures for convening the General Assembly of owners
Article 13. (1) The General Assembly shall be convened by invitation delivered at least three days prior to the date of the meeting, or at least 24 hours before the meeting for urgent cases. The invitation shall be posted at a visible location in the condominium.

(2) The invitation shall be delivered to the owner, the occupier or an adult in the household who is entered in the register referred to in Article 7.

(3) Delivery shall be confirmed by a receipt in two copies, which shall be signed by the recipient and the deliverer and marked with the date and time of delivery.

(4) In cases where the owner or occupier is absent or refuses to receive the invitation, the latter shall be considered as delivered if attached to the entrance door of the individual unit within the terms referred to in paragraph (1). Attachment of the invitation shall be certified by the deliverer be means of a record indicating the circumstances due to which the invitation was not delivered in person and the date and time at which it was attached. The record shall also be signed by a witness who shall be an owner or an occupier in the condominium.

(5) An owner who does not occupy an independent unit shall be invited through a person authorized by him or her, or where such a person has not been designated, under the procedures stipulated in Article 4.

(6) In the case of joint ownership of an independent unit, delivery of the invitation to one of the joint owners shall be considered to mean that the other owners have also been invited.

(7) The invitation shall indicate the agenda, date, time and location of the General Assembly.

(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;

Representation at the General Assembly
Article 14. (1) An owner who cannot participate in the General Assembly may authorize in writing an adult member of his or her household to whom he or she is related, or another owner, to represent him or her.

(2) Where the condominium includes municipalities, the state or legal entities as owners, authorization shall be given by the Mayor, the Regional Governor, the respective minister or the management bodies of the legal entities.

(3) An owner may also authorise another person to represent him or her. In this case the power of attorney shall be certified by a notary.

(4) One person may not represent more than three owners.

(5) The participation of an authorised representative shall be entered in the minutes of the General Assembly and a copy of the power of attorney shall be attached thereto.

General Assembly quorum
Article 15. (1) A General Assembly shall be held if it is attended, in person or through representatives, by the owners of at least 67 undivided shares of the common areas of the condominium.

(2) Where the meeting cannot be held at the time indicated in the invitation due to the absence of the quorum referred to in paragraph (1), it shall be postponed by one hour and subsequently held in accordance with the agenda announced in advance. It shall then be considered legal regardless of the number of undivided condominium shares represented.

Holding a General Assembly
Article 16. (1) The General Assembly shall be held at an appropriate location in the condominium, its adjacent area or at another location nearby.

(2) The General Assembly shall be chaired by the chairperson or another member of the Managing Council, or by the manager.

(3) The General Assembly of owners may not adopt decisions on matters not included in the agenda announced in advance except in urgent cases.

(4) Minutes of the General Assembly shall be kept. The person responsible for keeping the minutes shall be elected by ordinary majority on a motion submitted by the Chair of the meeting.

(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 essence of statements made, the motions submitted and the decisions adopted.

(6) The minutes shall be prepared within 7 days of the meeting and shall be signed by the person chairing the meeting and the person who has taken them. Any refusal to sign the minutes shall be recorded therein.

(7) A notice of the minutes shall be delivered to the owners within the term stipulated in paragraph (6) and under the procedures set out in Article 13 (2) to (6). The notice shall be posted at a visible location in the condominium.

(8) The chairperson of the Managing Council (Manager) shall provide every owner or owner’s representative with the opportunity to familiarise themselves with the minutes and a copy of the minutes on request.

(9) Every member of the General Assembly may contest the contents of the minutes, including the veracity of the decisions recorded in them. The contestation shall be submitted in writing to the Managing Council (Manager) within 7 days of delivery of the notice specified in paragraph (7), but no later than one month in cases where the owner or occupier is absent and the notice has been served by attaching it to the entrance door of the individual unit.

Adoption of General Assembly decisions
Article 17. (1) At the General Assembly the owners shall have the right to vote in proportion to the undivided shares which they own in the condominium.

(2) The General Assembly of owners shall adopt decisions:

1. unanimously: for taking action in connection with the construction of an additional storey or an extension to the building and to grant the right of use or the right to build;

2. by majority of no less than 75 per cent of the represented undivided shares of the common areas of the condominium: for eviction of an owner under the procedures set out in Article 45 of the Ownership Act; the owner to whom the decision refers shall not participate in the vote;

3. by majority of no less than 67 per cent of the represented undivided shares of the common areas of the condominium: for renovation and major repairs.

(3) Decisions shall be adopted by a majority exceeding 50 per cent of the of the represented undivided shares of the common areas of the condominium, except in the cases referred to in paragraph (2).

(4) The decisions referred to in item 2 and item 3 of paragraph (1) shall be adopted in compliance with the quorum requirements pursuant to Article 15 (1).

Joint General Assembly
Article 18. (1) Where the need arises to resolve a matter related to the common areas of two or more condominiums, a joint General Assembly may be held in which the condominiums shall nominate an equal number of representatives for participation.

(2) The joint General Assembly shall be convened at the initiative of the Managing Council (Manager) of one of the condominiums and shall be held under the general rules for conducting a General Assembly set out in this Act.

(3) The decisions shall be adopted by a two-thirds majority of persons present.

Managing Council (Manager)
Article 19. (1) The Managing Council (Manager) shall be the executive body of the condominium.

(2) The Managing Council (Manager) shall be elected for a period of two years.

(3) The Managing Council shall consist of an odd number of at least three members determined by a decision of the General Assembly.

(4) The members of the Managing Council shall elect a chairperson from amongst themselves.

(5) The members of the Managing Council shall only be owners unrelated by direct descent or collateral family relationship to the second degree.

(6) The mandate of a member of the Managing Council (Manager) may be terminated before expiry of his or her term of service on the grounds of non-performance of obligations only by a decision of the General Assembly.

(7) The General Assembly may adopt a decision to pay remuneration to members of the Managing Council (Manager).

Obligation to participate in management
Article 20. An owner may only refuse to be a member of the Managing Council (Manager) or member of the Control Board (Controller) in cases of de facto inability due to illness or long-term absence during the respective year and in the case of a proposal for repeated election.

Election of the Managing Council (Manager)
Article 21. (1) The election of a new Managing Council (Manager) shall be held no later than the date of expiry of the mandate specified in Article 19 (2).

(2) The Managing Council (Manager) shall continue to carry out its, his or her functions until the election of a new Managing Council (Manager).

(3) The Managing Council (Manager) shall notify the respective municipal or district administration of its/their election within 14 days of its occurrence. A certified copy of the decision of the General Assembly shall be attached to the notification.

Managing Council meetings and quorum
Article 22. (1) The Managing Council shall hold a meeting at least once every three months and shall adopt decisions by ordinary majority if two-thirds of its members are present.

(2) Minutes of Managing Council meetings shall be kept, which shall be signed by the members present.

Powers of the Managing Council (Manager)
Article 23. (1) The Managing Council (Manager) shall:

1. organise the implementation of General Assembly decisions;

2. monitor compliance with the condominium regulations;

3. keep the book of minutes, the architectural plans of the building, records of incoming and outgoing correspondence, the technical certificate of the building if in existence, the income and expenditure book, etc;

4. prepare the annual budget for the management, maintenance and use of the common areas of the condominium, the annual plan for repairs, reconstruction, redesignation and other activities in the building and reports on their implementation;

5. represent the condominium in its relations with local authorities and other legal subjects;

6. maintain and keep the register of owners stipulated in Article 7;

7. submit circumstances subject to entry in the register as specified in Article 44 and any changes in such circumstances for entry in the register;

8. 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 placed at the disposal of every owner or occupier on request.

Control Board (Controller)
Article 24. (1) A Control Board (Controller) shall be elected for a period of two years.

(2) The Control Board shall consist of an odd number of at least three members appointed by a decision of the General Assembly.

(3) The members of the Control Board shall elect a chairperson from amongst themselves.

(4) The Control Board (Controller) shall control the activities of the Managing Council (Manager) in implementing the budget and decisions of the General Assembly in connection with the expenditure of condominium funds.

(5) The Control Board (Controller) shall inspect the cash box at least once a year and shall submit a report to the General Assembly on the results of the inspection. Where a condominium does not have a Control Board (Controller), the General Assembly shall designate persons from amongst the owners to carry out the inspection and submit the report on the results.

(6) The Control Board shall hold a meeting at least once every six months and shall adopt decisions by ordinary majority if two-thirds of its members are present. Minutes of the Control Board meeting shall be taken and signed by the members present. The General Assembly may decide to pay remuneration to the members of the Control Board (Controller).

(7) The members of the Control Board shall only be owners unrelated by direct descent or collateral family relationship to the second degree.

(8) The mandate of a member of the Control Board or Controller may be terminated before expiry of his or her term of service on the grounds of non-fulfilment of obligations only by a decision of the General Assembly.

(9) The Control Board (Controller) shall submit a written report to the General Assembly at the end of its, his or her mandate. The report shall be made available to every owner or occupier on request for the purposes of familiarisation.
Section III

Association of Owners

Establishment of an Association of Owners
Article 25. (1) The Association shall be a legal entity established in accordance with the procedures set out in this Act with the object of managing the common areas of the condominium.

(2) A constituent assembly of all owners in the condominium shall be convened to establish the Association.

(3) An Association of owners in two or more condominiums may be established when the need arises to resolve matters related to common areas of two or more condominiums.

Procedure for convening the constituent assembly
Article 26. (1) Any owner may request that a constituent assembly be convened and may put forward a draft agreement on the establishment of the Association.

(2) The constituent assembly shall be convened by invitation delivered to an owner in accordance with the procedure set out in Article 13 (2) to (6).

(3) The invitation shall contain 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.

Conducting a Constituent Assembly
Article 27. (1) A constituent assembly shall be held if attended by all owners in person or their representatives.

(2) Representatives shall be authorized under the procedures set out in Article 14 herein.

(3) The Constituent Assembly shall be chaired by an owner elected by a majority of more than half of the owners. A person shall also be elected by a motion of the Chairperson to take the minutes of the assembly.

(4) The constituent assembly:

1. shall adopt a decision to establish the Association;

2. shall define the name of the Association;

3. shall adopt an agreement on the establishment of the Association;

4. shall elect a Managing Council (Manager) and Control Board (Controller)

5. may determine a term for the existence of the Association.

(5) The decisions referred to in item 1 to item 3 and item 5 of paragraph (2) shall be passed unanimously, while the decision referred to in item 4 of paragraph (4) shall be passed by a majority of more than half of the owners.

(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 owners or their representatives.

Agreement to establish an Association of Owners
Article 28. (1) The agreement to establish an Association of Owners shall define the following:

1. the name and address of the legal entity;

2. the rights and obligations of owners in connection with the use and maintenance of the common areas of the building;

3. the decision making procedures;

4. the membership, mandate and organization of the work of the Managing Council (Manager) and the Control Board (Controller);

5. other conditions agreed by the owners.

(2) Matters not covered by the agreement shall be resolved by the condominium rules.

(3) The Minister of Regional Development and Public Works shall endorse a sample agreement.

Registration of the Association
Article 29. (1) The Chairperson of the Managing Council (Manager) shall submit an application within 14 days of the Constituent Assembly to the respective municipal or district administration to enter the Association in a public register.

(2) The following shall be attached to the application referred to in paragraph (1):

1. a list of owners participating in the Association, with the forenames, patronymics, surnames and addresses of the owners in the condominium.

2. a copy of the minutes of the constituent assembly certified by the chairperson of the Managing Council (Manager);

3. a copy of the agreement certified by the chairperson of the Managing Council (Manager);

4. samples of the signatures of the persons representing the Association, certified by a notary.

Transfer and termination of Association membership
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 or state budget funding has been approved for renovation of the building or parts thereof.

(3) Membership in the Association may be terminated after expiry of the guarantee for the construction and assembly works completed under projects as specified in paragraph (2), or no later than one year after their termination due to force majeure circumstances. Membership shall be terminated following submission of a written declaration with a notarially certified signature, addressed to the Managing Council (Manager), after which the Association shall also be terminated.

Association bodies
Article 31. (1) The Association shall comprise a General Assembly, a Managing Council (Manager) and a Control Board (Controller).

(2) The Association shall be represented by the Managing Council (Manager) in its relations with local authorities and other legal subjects;

General Assembly of the association
Article 32. (1) The General Assembly of the Association shall consist of all owners of individual units in the condominium. Participation in the work of the General Assembly may take place in person or through representatives. Representatives shall be authorised in accordance with the procedures stipulated in Article 14.

(2) One person may not represent more than three owners.

(3) The General Assembly shall adopt decisions concerning contracts with third parties, amendments to the Association establishment agreement and its termination.

(4) The provisions of Section II shall apply to the other powers of the General Assembly, the convening initiative and procedures, the conduct and the quorum of the General Assembly.

(5) The General Assembly shall be held at least once a year.

Adoption of General Assembly decisions
Article 33. (1) In the General Assembly each owner shall be entitled to a vote corresponding to the number of undivided shares of the common areas of the building which he or she owns.

(2) The General Assembly of the Association shall adopt decisions:

1. unanimously: for taking action in connection with the construction of an additional storey or an extension to the building, to grant the right of use or the right to build and to approve amendments to the agreement;

2. by majority of no less than 75 per cent of the represented undivided shares of the common areas of the condominium: for eviction of an owner under the procedures set out in Article 45 of the Ownership Act; the owner to whom the decision refers shall not participate in the vote;

3. by majority of no less than 67 per cent of the represented undivided shares of the common areas of the condominium: for renovation and major repair works.

(3) Decisions shall be passed by a majority exceeding 50 per cent of the represented undivided shares of the common areas of the condominium, except in the cases referred to in paragraph (2).

(4) The decisions referred to in item 2 and item 3 of paragraph (1) shall be passed in compliance with the quorum requirements pursuant to Article 15 (1).

Association Managing Council (Manager)
Article 34. (1) The Managing Council (Manager) shall be elected for a period of two years.

(2) The Managing Council (Manager) shall:

1. organise the implementation of General Assembly decisions;

2. represent the condominium in its relations with local authorities and other legal subjects;

3. prepare the annual budget for the management, maintenance and use of the common areas of the condominium, the annual plan for repairs, reconstruction, redesignation and other activities in the building and reports on their implementation;

4. assign activities on contract to persons external to the condominium in connection with maintenance of the common areas when the General Assembly has adopted a decision for this to be done;

5. keep the book of minutes, the architectural plans of the building, the record of incoming and outgoing correspondence, the technical certificate of the building if in existence, the record of income and expenditure, etc;

6. maintain and keep the register of owners specified in Article 7;

7. declare circumstances subject to entry in the public register referred to in Article 44 herein;

8. monitor compliance with the condominium rules;

9. implement other powers assigned to the Managing Council (Manager) by the General Assembly;

(3) The Managing Council shall elect a chairperson from among its members who shall convene and chair its meetings.

(4) The provisions of Section II shall apply to the number of members of the Managing Council, the election of a new Managing Council (Manager), the conducting of meetings and their quorum.

(5) The members of the Managing Council shall only be owners unrelated by direct descent or collateral family relationship to the second degree.

(6) The mandate of a member of the Managing Council (Manager) may be terminated before expiry of his or her term of service on the grounds of non-fulfilment of obligations only by a decision of the General Assembly.

(7) The General Assembly may decide to pay members of the Managing Council (Manager) a remuneration.

(8) In the cases specified in item 4 of paragraph (2) the contract shall determine the authority vested in persons engaged in maintenance activities on the common areas of the condominium.

Control Board (Controller)
Article 35. (1) The Control Board (Controller) shall be elected for a period of two years.

(2) The Control Board shall comprise an odd number of at least three members determined by a decision of the General Assembly.

(3) The members of the Control Board shall elect a chairperson form amongst themselves.

(4) The Control Board (Controller) shall control the activities of the Managing Council (Manager) in connection with implementation of the budget and the decisions of the General Assembly on the expenditure of condominium funds.

(5) The Control Board (Controller) shall inspect the cash box at least once a year and shall submit a report on the results of the inspection to the General Assembly.

(6) The Control Board shall hold a meeting at least once every six months and shall adopt decisions by ordinary majority if two-thirds of its members are present. Minutes shall be kept of the Control Board meetings, which shall be signed by the members present.

(7) The members of the Control Board shall only be owners unrelated by direct descent or collateral family relationship to the second degree between themselves or to the members of the Managing Council. The General Assembly may decide to pay members of the Control Board (Controller) a remuneration.

(8) The mandate of a member of the Control Board (Controller) may be terminated before expiry of his or her term of service on the grounds of non-fulfilment of obligations only by a decision of the General Assembly.

(9) The Control Board (Controller) shall submit a written report to the General Assembly at the end of his or her mandate. The report shall be made available to each owner or occupier on request for the purposes of familiarisation.

Termination of the Association
Article 36. (1) The Association of Owners shall be terminated:

1. by a decision of the General Assembly;

2. on destruction of the building or the separate entrance when under condominium ownership arrangements;

3. on expiry of its established term of existence;

4. on departure of one of its members under the conditions stipulated in Article 30 (3).

(2) The Association may not be terminated under the procedure set out in item 1 of paragraph (1) if a condominium project for the use of European Union or state budget funding has been approved for renovation of the building or parts thereof. The Association may be terminated by a decision of the General Assembly after expiry of the guarantee for the construction and assembly works completed under the project, or no later than one year after their termination due to force majeure circumstances.

(3) The Managing Council (Manager) shall submit an application to the respective municipal or district administration within 14 days of the onset of the circumstances specified in paragraph (1) for the registration to be deleted. In cases where the Association is terminated by a decision of the General Assembly, a copy of the decision, certified by the chairperson of the Managing Council (Manager), shall be attached to the application.

(4) A General Assembly of owners shall be convened within two months of termination of the Association. The General Assembly shall be convened under the procedure set out in Article 12.

Liquidation
Article 37. (1) Liquidation in accordance with the procedure set out in the Non-profit Legal Persons Act shall be effected on termination of the Association.

(2) The liquidation shall be effected by the Chairperson of the Control Board (Controller).
Section IV

Implementation and Control of enactments of the General Assembly and the Managing Council (Manager)

Implementation of General Assembly decisions
Article 38. (1) Decisions of the General Assembly shall be implemented within the terms prescribed therein. Where a term has not been prescribed, the decisions shall be implemented within 14 days of receipt of a written invitation delivered under the procedure set out in Article 13 (2) to (6).

(2) Where an owner or occupier fails to implement a decision within the prescribed term, the Chairperson of the Managing Council (Manager) may submit an application for an implementation order to be issued under the procedure set out in item 1 of Article 410 (1) of the Code of Civil Procedure. A copy of the General Assembly decision shall be attached to the application.

(3) A copy of the notice specified in Article 45 (2) of the Ownership Act shall be attached to the written request for the issuance of a writ of implementation for the eviction of an owner of an independent unit or part thereof.

Advance implementation
Article 39. The General Assembly may request advance implementation of a decision to incur expenditure on essential repairs.

Repeal of General Assembly decisions
Article 40. (1) Any owner may request the repeal of unlawful General Assembly decisions.

(2) The repeal application shall be submitted to the District Court with jurisdiction over the location of the condominium within 14 days of receipt of the notice specified in Article 16 (7) herein.

(3) Submission of the repeal application shall not discontinue implementation of the decision except where the court decrees otherwise.

Representation in Court
Article 41. The owners or the Association shall be represented in court by the Chairperson of the Managing Council (Manager) or by a person authorised by him or her.

Court proceedings and powers
Article 42. (1) The application shall be considered under the Code of Civil Procedure.

(2) The court ruling shall leave the General Assembly decision in effect or repeal it.

(3) The court ruling shall be subject to appeal in accordance with the Code of Civil Procedure.

Repeal of Acts of the Managing Council (Manager)
Article 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 receipt of the written invitation served under the procedure specified in Article 13 (2) to (6) herein.

(3) The application shall be considered under the Code of Civil Procedue.

(4) The court ruling shall leave the decision of the Managing Council (Manager) in effect or repeal it.

(5) The court ruling shall be final.
Chapter Three

REGISTRATION OF BUILDINGS UNDER CONDOMINIUM OWNERSHIP ARRANGEMENTS

Register
Article 44. (1) The municipal or regional administration shall create and maintain a public register of buildings or separate entrances under condominium ownership arrangements located on its territory.

(2) Fees shall not be collected for registration and access to the data in the register.

(3) The following data shall be recorded in the register:

1. the building or the individual entrance under condominium ownership arrangements – address, number of storeys and other individual characteristics defined by the ordinance specified in paragraph (4) herein;

2. the form of management;

3. the managing bodies.

(4) The registry maintenance procedure and the sample of the register shall be determined by order of the Minister of Regional Development and Public Works.

Powers of the municipal or district administration to make entries in the register.
Article 45. (1) In cases of registration of data on a condominium managed by a General Assembly of owners, the Mayor of the municipality or district, or a person authorized by him or her, shall verify whether the data are subject to entry in the register.

(2) In cases of registration of data on a condominium managed by an Association of Owners, the authority referred to in paragraph (1) shall also verify compliance with the requirements of Article 29.

(3) After the verification specified in paragraphs (1) and (2) is complete, the Mayor of the municipality or district, or the person authorized by him or her, shall enter the data in the register.

(4) If the authority referred to in paragraph (1) finds that the data submitted for registration do not meet legal requirements, it shall notify the Managing Council (Manager) of the respective condominium to correct the omissions or inaccuracies within 7 days of notification.

(5) If the omissions or inaccuracies are not corrected within the term specified in paragraph (4) the Mayor of the municipality or district shall issue a refusal to register the data, providing due justification. The refusal shall be delivered to the Managing Council (Manager) of the respective condominium immediately after its enactment in accordance with the Administrative Procedure Code.

Contesting the refusal to register data
Article 46. (1) The refusal shall be subject to appeal before the administrative court with jurisdiction over the location of the condominium within 7 days of its delivery.

(2) The appeal shall be submitted through the Mayor of the municipality or district, who shall send it immediately to the court together with its attachments.

(3) The appeal shall be considered under the procedures set out in the Administrative Procedure Code.

Routine control over registration
Article 47. The mayor of the municipality or district shall exercise routine control over the registration of buildings or individual entrances under condominium ownership arrangements.
Chapter Four

REPAIR, RENEWAL AND MAINTENANCE OF COMMON AREAS

General Rules
Article 48. (1) Repairs shall only be implemented by decision of the General Assembly of owners or of the Association.

(2) In cases of repairs to common areas, priority shall be given to the implementation of technical construction works to bring the building into compliance with the measures and instructions set out in its technical certificate.

(3) Expenditure on repairs, renewals, reconstruction and redesignation of the common areas, for which a decision has been taken by the General Assembly of owners or of the Association, 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 redesignation of common areas between individual condominiums shall be adopted jointly by the joint General Assembly under the procedure set out in Article 18 herein.

(5) Funds shall be released immediately under a decision of the Managing Council (Manager) for essential repairs to common areas of the building. The General Assembly shall approve the expenses incurred, which shall be certified by means of payment receipts.

(6) Costs of repairs as specified in paragraph (5) incurred by an owner at his or her own expense shall be reimbursed by a decision of the General Assembly or shall be deducted from his or her contributions owed to the fund specified in Article 50 after presentation of payment receipts.

(7) Where the expenditure incurred by an owner is not reimbursed under the procedure set out in paragraph (6), the respective owner shall have the right to lodge a claim against the remaining owners who shall be jointly responsible for the reimbursement.

(8) For the routine maintenance of common areas of the condominium, the owners and occupants shall make monthly contributions in an amount determined by the condominium rules or by a decision of the General Assembly.

Urgent Repairs
Article 49. (1) Where urgent repairs are needed to the building or the individual entrance under condominium ownership arrangements, financial means from the fund specified in Article 50 shall be released immediately by a decision of the Managing Council (Manager).

(2) Where there is no money in the fund referred to in Article 50 or the money is insufficient, the Chairperson of the Managing Council (Manager) shall immediately convene the General Assembly under the procedure set out in Article 13 (1) to adopt a decision to raise the funds needed to carry out the repairs.

(3) If the General Assembly is not convened or a decision under the procedure of paragraph (2) is not adopted, the chairperson of the Managing Council (Manager) or the interested parties shall notify the Mayor of the municipality or district about the circumstances specified in paragraph (1).

(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.

Repair and Renovation Fund
Article 50. (1) The General Assembly of owners or of the Association shall establish and maintain a Repair and Renovation Fund.

(2) The money in the fund shall be raised from:

1. contributions made by owners in amounts determined by a decision of the General Assembly;

2. other sources.

(3) The money shall be accumulated in a specially designated current account opened in the name of the Chairperson of the Managing Council (Manager) or the Association.

(4) The money in the fund shall be spent on:

1. activities specified in Article 48 and Article 49 and for equipment;

2. implementation of the measures and instructions set out in the technical certificate of the building;

3. other costs determined by a decision of the General Assembly.

(5) The chairperson of the Managing Council (Manager) shall dispose of the funds from the account referred to in paragraph (3) on the basis of a decision on their use adopted by the General Assembly.

Expenditure on consumables and routine maintenance
Article 51. (1) Expenditure on consumables and routine maintenance of the common areas of the condominium shall be distributed equally between the number of owners and occupants.

(2) Children under 6 years of age and occupants who inhabit the condominium for no more than a month shall not pay the costs referred to in paragraph (1).

(3) An owner or occupier who is absent for more than one month shall pay 50 per cent of the expenditure on consumables referred to in paragraph (1) for the period of his or her absence. The Chairperson of the Managing Council (Manager) shall be notified in writing about the absence.

(4) Where a janitor has been appointed in the building by a decision of the General Assembly of owners or of the Association, expenditure on the janitor shall be distributed under the conditions and procedures specified in paragraphs (1) and (3).

(5) Owners or occupants who engage in an occupation or activity in the condominium involving more frequent access of external persons than usual shall pay for up to five times the share of consumables referred to in paragraph (1).

(6) Owners or users of shops, restaurants, production, business or other premises with a non-residential designation shall contribute to the costs for consumables to the amount indicated in paragraph (5).

(7) Owners and occupants who keep animals in the condominium which need to be taken for walks shall contribute to the costs for consumables for each animal equal to the amount for one occupier.

Technical certificate
Article 52. (1) Each building under condominium ownership arrangements shall be issued with a technical certificate under the procedures set out in the Spatial Development Act.

(2) The Chairperson of the Managing Council (Manager) shall be obliged to preserve the technical certificate indefinitely.

(3) A technical certificate shall be compiled for:

1. completed new buildings: before putting the buildings into operation;

2. major repairs, reconstruction and major renovation: within six months of completion of the works;

3. existing buildings which have been put into operation by the date of enforcement of this Act: by 31 December 2012.

Implementation of technical measures and instructions included in technical certificate
Article 53. (1) The measures and instructions in the technical certificate shall be mandatory for the owners of individual units.

(2) Within three months of issuance of a technical certificate the General Assembly of owners or of the Association shall adopt decisions to implement the measures and instructions prescribed.

(3) The decisions specified in paragraph (2) shall determine the amount of funds needed, their distribution between owners and the terms for their collection.

Control on the implementation of technical certificate measures
Article 54. The Mayor of the municipality or district shall exercise routine control over the stage-by-stage implementation of measures prescribed in the technical certificate.
Chapter Five

ADMINISTRATIVE PENAL PROVISIONS
Article 55. (1) An owner or occupier of a building or individual entrance under condominium ownership arrangements who does not fulfil an obligation under this Act shall be penalised with a fine of between BGN 20 and BGN 100 for a natural person or a pecuniary sanction of between BGN 150 and BGN 350 in the case of a legal entity.

(2) An owner or occupier of a building or individual entrance under condominium ownership arrangements who infringes the condominium regulations and causes inordinate inconvenience to the other owners and occupants shall be penalised with a fine of between BGN 50 and BGN 150 in the case of a natural person or a pecuniary sanction of between BGN 200 and BGN 500 in the case of a legal entity.
Article 56. (1) Where a member of the Managing Council (Manager) or a member of a Control Board (Controller) infringes or fails to fulfil his or her obligations under this Act, he or she shall be subject to a fine of between BGN 300 and BGN 1,000 if the infringement does not constitute a criminal act.

(2) A chairperson of a Managing Council (Manager) who fails to declare circumstances subject to entry in the public register pursuant to Article 44 or its amendments shall be liable to a fine of between BGN 100 and BGN 500.
Article 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 appointed by a decision of the General Assembly. 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 appointed by a decision of the General Assembly.

(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.

(4) The act ascertaining the infringement shall be issued by the municipal or district administration, while the penalty enactment shall be issued by the Mayor of the municipality or district or by an official authorized by the Mayor.

(5) The ascertainment of infringements and the issuance, appeal and implementation of penalty enactments shall be implemented under the procedures set out in the Administrative Violations and Sanctions Act.
SUPPLEMENTARY PROVISION
§ 1. In the meaning of this act:

1. An “individual unit in a building under condominium ownership arrangements” shall be considered to mean a self-contained component of a building under condominium ownership arrangements with its own functional designation.

2. The “area adjoining a building under condominium ownership arrangements” shall be considered to mean part of the territory of a plot of building complex development land in which the building under condominium ownership arrangements has been built and which includes sites such as landscaped areas, playgrounds, parking spaces, etc., together or separately.

3. A “closed-type residential complex” shall be considered to mean a complex comprising a separate regulated plot of land on which buildings under condominium ownership arrangements have been built and other sites have been established to serve the owners and occupants in compliance with the access control requirements for external persons.

4. A “household” shall be considered to mean two or more persons who live together in an individual unit or part thereof, at which their permanent or current address is registered and who have a joint budget, regardless of their family relationship.

5. “Occupants” shall be considered to mean natural persons or legal entities who are not owners of individual units in a building under condominium ownership arrangements, but who inhabit them on another legal basis.

6. “Immediate neighbours” shall be considered to mean the owners and occupants of individual units located on the same floor, beneath or above the respective unit.

7. “Essential repairs” shall be considered to mean activities to bring the building, common areas, installations or parts thereof into compliance with statutory technical requirements for the building and installations, including the roofs, with a view to removing obstacles or impediments to the normal use of the building and its individual units.

8. “Urgent repairs” shall be considered to mean activities to prevent destruction of the building or its structural elements, common areas and installations or parts thereof and to eradicate major damage and deformation leading to hazards to the life and health of the owners, occupants and other persons or damage to the environment and nearby buildings.

9. “Expenditure on consumables” shall be considered to mean expenditure on lighting, cleaning, the lift and other essential items for the maintenance of the common areas of the building.

10. “Beneficial expenditure” shall be considered to mean expenditure on reconstruction and repair works on the common areas which increase the value of the building.

11. “Maintenance of common areas” shall be considered to mean activities to preserve the common areas in a good condition corresponding to legal requirements.

12. “Redesignation of a common area of the building” shall be considered to mean activities which can change the designation of the site with or without the implementation of construction and assembly works.

13. “Long-term absence” shall be considered to mean the uninterrupted absence of an owner or occupier for a duration exceeding three months.
TRANSITIONAL AND FINAL PROVISIONS
§ 2. Where a General Assembly in the condominium has not been conducted for more than one year, such a meeting shall be convened and records entered in the book of owners within six months of entry into effect of this Act.
§ 3. Within three months of expiry of the term pursuant to § 2, the Mayor of the municipality or district shall organize the convening of General Assemblies and the election of managing bodies in the buildings under condominium ownership arrangements where such meetings have not been convened and such bodies have not been elected due to lack of initiative on the part of the owners and occupants of the respective condominium.
§ 4. Municipalities in which buildings under condominium ownership arrangements are located shall provide budget credits in the expenditure section of their budgets to finance the activities specified in Article 49 (5).
§ 5. The Ownership Act shall apply to any matters not regulated by this Act.
§ 6. The following amendments and supplements shall be made to the Ownership Act (Promulgated State Gazette No. 92/16.11.1951; amended SG No. 12/1958; SG No. 90/1960; 99/1963, SG No. 26/1973; SG No. 27/1973; SG No. 54/1974; SG No. 87/1974; SG No. 55/1978; 36/1979; 19/1985; SG No. 14/1988, 91/1988; 38/1989; 31/1990; SG No. 77/1991 SG No. 33/1996; SG No. 100/1997; 90/1999; SG No. 34/2000; SG No. 59/2000, SG No. 32/2005, SG No. 46/2006, SG No. 105/2006, SG No. 24/2007, SG No. 59/2007, SG No. 113/2007; SG No. 54/2008, SG No. 109/200:

1. In Article 42 the words “or Managing Council” shall be deleted.

2. In Article 43 the words “three quarters” shall be substituted by “half”.

3. In Article 45 (1) the phrase “for a period of three years” shall be added in the text before letter “a” and after the word “meeting”.

4. In Article 46 (1) the words “regulations under Article 49” shall be replaced by the words “separate act”.

5. In Article 47 (1) and (2) the words “chairman of the Managing Council” shall be deleted.

6. Article 49 shall be repealed.
§ 7. The following amendments and supplements shall be made to the Energy Efficiency Act (SG No. 98/2008):

1. In Article 36 (1) and (3) the words “paragraph (2)” shall be added after the words “Article 19”.

2. In Article 58:

a) the previous text shall become paragraph (1).

b) paragraph (2) shall be added as follows:

“(2) Consumers of electric power, thermal energy and natural gas in buildings under condominium ownership arrangements who have established legal Associations of Owners under the procedures set out in the Condominium Ownership Management Act may apply for funding of projects to increase energy efficiency from the Energy Efficiency Fund.”
§ 8. In the Local Self-government and Local Administration Act (promulgated SG No. 77/1991; amended, No. 24, 49 and 65/1995, No. 90/1996, No. 122/1997, No. 33, 130 and 154/1998, No. 67 and 69/1999, No. 26 and 85/2000, No. 1/2001, No. 28, 45 and 119/2002, No. 69/2003, No. 19 and 34/2005, No. 30 and 69/2006, No. 61 and 63/2007, No. 54 and 108/2008) item 19 shall be added to Article 44 (1) as follows:

“19. assist the condominiums and their managing bodies in accordance with the conditions procedures set out in the Condominium Ownership Management Act.”
§ 9. The following amendments and supplements shall be made to the Spatial Development Act (promulgated, SG No. 1/2001, No. 41 and 111/2001, No 43/2002, No. 20, 65 and 107/2003, No. 36 and 65/2004, No. 28, 76, 77, 88, 94, 95, 103 and 105/2005, No. 29, 30, 34, 37, 65, 76, 79, 82, 106 and 108/2006, No. 41 and 61/2007, No. 33, 43, 54, 69, 98 and 102/2008):

1. in Article 22 (2) the word “predominantly” shall be deleted and a comma shall be placed after the word “gardens”, followed by the addition of “parking spaces or underground car parks and play areas”.

2. paragraph (8) shall be created in Article 38 as follows:

“(8) In buildings with more than ten independent units under construction under condominium ownership arrangements which have building permits issued after the enforcement of the Condominium Ownership Management Act, at least one common room shall be provided on the ground floor or first floor for use by owners and occupants of the buildings for cleaning and maintenance, sport and other service activities. This common room can be used for meetings, janitors or security guards; perambulators, bicycles, mopeds and motorcycles, storage of tools and equipment for cleaning the building and its adjoining area, washing machines, drying machines and other similar items and purposes.”

3. § 24a shall be added to the Final Provisions:

“§ 24a. Building permits issued up to 31 July 2008 in residential complex development neighbourhoods, of which the implementation has begun prior to that date, shall remain valid for the period for which they were issued. This provision shall not revoke the moratorium imposed by the Decision of the National Assembly to impose a moratorium on construction in complex development zones (SG No. 70/2008).”
§ 10. Article 99a shall be added to Chapter Four, Section II of the Civil Registration Act (promulgated, SG No. 67/1999; amended, No. 28 and 37/2001, No. 54/2002, No. 63/2003, No. 70 and 96/2004, No. 30/2006, No. 48 and 59/2007, No. 105/2008) as follow:
Article 99a. The number of persons who can be registered at one address with the consent of the owner of a residential unit shall not exceed three times the number of persons who can normally dwell in the respective residential unit.
§ 11. By 31 March 2009, the Minister of Regional Development and Public Works shall issue the secondary legislation on the implementation of this Act.
§ 12. The implementation of this Act shall be assigned to the Minister of Regional Development and Public Works.
§ 13. This Act shall become effective on the 1st May 2009.

This Act was adopted by the 40th National Assembly on the 13th January 2009 and stamped with the Official Seal of the National Assembly.