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.
AFI Europe group - ongoing legal support
In 2012 NBLO has continued to provide a full range of legal advice to its long-term client AFI Europe NV and its seven subsidiaries in Bulgaria. Our advice has ranged over a variety of issues – from day-to-day corporate governance and company secretarial work, to complex corporate transactions and banking and financing matters. We have also carried out two due diligence projects on behalf of AFI Israel Properties Ltd. in view of the contemplated public offering of the company on the Israeli Stock Exchange.
© New Balkans Law Office 2019