Regulation of the Management of a Complex

Q: How is the management of a complex regulated?  What do I need to be aware of?  [Condominium Act etc]

The Bulgarian Condominium Management Act (“CMA”) is a statute which regulates relations between owners in a development. The owners may have also approved a governing document which further fleshes out the way in which the running of the development is organised.

By law, the owners of units in a property development can use the common areas of the development and share in their management. Each owner has a right to enjoy his property without interference from the others.

According to art. 6 CMA, owners must also:

- not cause damage to other properties within the development and common areas;
- avoid causing more than minimal inconvenience to other owners or occupants;
- not tamper with any part of the development (whether buildings, shared areas, etc.) intended for general use;
- comply with the resolutions of the governing bodies of the development;
- cover the cost of repairs, reconstruction and renovation of the common parts, its facilities and equipment, and contribute to a fund for the "repair and improvement" of the development, in proportion to their share of the commonhold;
- bear the cost of the management and maintenance of common parts;
- comply with health and safety regulations and standards of hygiene;
- provide access to their own property or parts thereof, if necessary for the investigation of, design and planning of, or conduct of repairs, renovations etc, as above.

Typically, the General Assembly of Commonhold Owners chooses a Manager (which in larger developments may be a maintenance company co-owned by all unit owners or set up as a business), such Manager running the day-to-day affairs of the development.
 



Recent work:

Železárni Veselí

We have provided full legal support to the establishment and local operations of the Czech-headquartered steel holding company Železárny Veselí. We have acted on behalf of the client on the following major assignments:

  • Incorporating the joint venture structure of four Bulgarian companies in which the Czech investor holds 76% of the share capital
  • Drafting the agreements required for the operation of four photovoltaic power plants with a total capacity of 20 MWp
  • Representing the borrower on the financing of the four Bulgarian companies by a Slovak bank
  • Providing litigation advice on the feasibility of challenging the recently-introduced access fee for photovoltaic power plants in the country.

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