Condominium associations. What are they and what are the benefits?

Today, the concept of condominium associations is on everyone's lips. However, what is it actually?

Condominium is an association of co-owners of the apartment building. In fact, all residents are united under a single legal entity for the use, management and maintenance of their joint property. The procedure for registration, reorganization and liquidation of the association is governed by the same-name law.

Nevertheless, is the result worth efforts taken? What are the benefits of the condominium?

Everything is simple here:

• The council of residents independently manages the building and makes decisions on the site improvements;

• All costs and nuances of the financial and economic part are completely transparent and controlled by the residents;

• Residents can enter into contracts directly with contractors, choosing them on their own;

• Condominium can take loans, receive income and help from the state;

• Condominium is exempt from taxes;

• Any violation of own interests may be resolved by residents quickly and on their own;

• There is an opportunity to influence the amount of rent and rates.

However, you will have to face a few problems:

• Monopoly of housing services and utilities restricts the choice of contractors;

• You will have to settle accounts with them at the usual price, without taking into account state benefits and discounts;

• Emergency repairs and emergency situations will have to be resolved at your own expense;

• All utility bills must be paid jointly by the whole house;

• The apartment must be privatized;

• All residents are responsible not only for their apartment, but also for the stairs, entrances, adjacent territory.

Procedure for establishing condominium associations

The Condominium system is still imperfect and is only at the stage of development. The procedure for its registration is rather time-consuming and difficult. However, now it is an effective mechanism for managing a many-storeyed house and, accordingly, own expenses for its maintenance.

• Create an initiative group of three or more real estate owners in this building. The initiative group prepares the minutes signed by all residents at the meeting in the process of registration. There are standard forms for convenience.

• Create a register of premises owners with all their data. You will also need a technical passport for the house, information on the availability and amount of debt for utilities, information about the condition of the adjoining territory and the cost of housing maintenance.

• Prepare Condominium’s Charter following a standard sample. if necessary, it can be supplemented by your own provisions that do not violate the law.

• Hold the statutory meeting. The initiative group must inform all residents at least in 14 days by written invitation. Invitations are handed over personally or sent by registered letter. The main issues of the first meeting - is the approval of the board and the chairperson, and harmonization of the charter. The decision is considered adopted if more than half of the co-owners vote for it.

• Register the condominium association as a legal entity. The authorized representative submits an application for registration, the charter and minutes of the statutory meeting to the state registrar. Then all is left to do is wait for the answer.

If you plan to rent an apartment in the house with Condominium association or without it, contact Comfort Realty. We will choose the appropriate option in Lviv in different districts and for any budget! Our lawyers and consultants will tell about all the peculiarities of different options.