What is condominium ownership in Bulgaria and what rights and obligations does it entail?
Condominium ownership in Bulgaria is a statutory property regime governing buildings in which separate units — apartments, studios, garages, offices or commercial premises — belong to different owners, while certain structural and functional elements remain jointly owned. It is not a voluntary association created by contract, but a legal framework that arises automatically once independent units exist within the same building.
This regime combines exclusive ownership over an individual unit with mandatory co-ownership of the common parts, proportionate to each owner’s ideal share. The concept of “ideal parts” refers to a mathematical share in the common elements of the building, inseparable from the individual unit and incapable of independent transfer. In practice, ownership in such a building is never purely individual — it always carries collective dimensions and shared responsibility.
The primary legal framework is the Law on the Management of Condominium Property (ЗУЕС), in force since 1 May 2009. Article 1 of the Act explicitly states that it regulates “the public relations related to the management of the common parts of buildings in condominium regime, as well as the rights and obligations of the owners, users and occupants of independent objects or parts thereof.”
In addition, the Property Act and general civil law provisions apply where relevant.
Under this system, governance is exercised collectively through the General Meeting of owners, which serves as the supreme decision-making body, and through elected management structures such as a Manager (Chairperson) or a Management Board. Their authority extends to budgeting, maintenance planning, contracting service providers and enforcing internal rules.
The Act also establishes a specific regime for gated residential complexes. Pursuant to Article 2, paragraph 1 of the Law on the Management of Condominium Property (ЗУЕС), the management of common areas in such complexes may be regulated by a written agreement with notarised signatures between the investor and the owners. According to Article 2, paragraph 2 of the same Act, this agreement must be registered and is binding upon subsequent purchasers — a mechanism that ensures continuity of management obligations.
Rights arising from condominium ownership
Condominium ownership grants both individual and collective rights.
According to Article 5, paragraph 1 of the Law on the Management of Condominium Property (ЗУЕС), owners have the right to use the common parts according to their designated purpose and to participate in the management of the condominium. This includes the right to access staircases and elevators, to use shared courtyards (where applicable), and to vote at the General Meeting.
Users — persons who occupy a unit without being owners — also have the right to use common parts and to participate in management, but with restrictions on certain categories of decisions unless otherwise authorised by the owner (Article 5, paragraph 2 of the Law on the Management of Condominium Property (ЗУЕС)).
Occupants may participate in discussions with an advisory vote (Article 5, paragraph 4 of the Law on the Management of Condominium Property (ЗУЕС)).
These provisions demonstrate that condominium ownership is not merely a passive title. It entails active participation in a structured community, including decision-making on budgets, repairs, maintenance standards and long-term building policy.
Obligations arising from condominium ownership
The condominium regime imposes a number of mandatory obligations designed to preserve the structural integrity, safety and collective functionality of the building.
Article 6, paragraph 1 of the Law on the Management of Condominium Property (ЗУЕС) sets out a detailed catalogue of duties, including:
– the obligation not to obstruct other owners in using the common parts and not to appropriate common areas (Article 6, paragraph 1, items 1 and 3);
– the obligation not to cause damage or create disturbances exceeding ordinary use (Article 6, paragraph 1, items 2 and 4);
– the obligation to comply with the decisions of the governing bodies (Article 6, paragraph 1, item 8);
– the obligation to contribute proportionally to repair costs and to the “Repair and Renovation” fund (Article 6, paragraph 1, item 9);
– the obligation to pay management and maintenance expenses (Article 6, paragraph 1, item 10);
– the obligation to grant access to one’s unit when necessary for inspection or repair of common installations (Article 6, paragraph 1, item 12);
– the obligation to maintain both the individual unit and the common parts in compliance with safety standards (Article 6, paragraph 1, items 17 and 18).
Importantly, Article 6, paragraph 4 of the Law on the Management of Condominium Property (ЗУЕС) establishes that owners are liable for the condominium’s obligations proportionally to their ideal shares, rather than jointly and severally, unless otherwise provided by law. Financial responsibility is therefore mathematically determined by ownership ratio.
The legal balance between individual autonomy and collective governance
Condominium ownership is fundamentally a balance between private autonomy and collective interest. An owner may not undertake alterations within their unit that jeopardise structural integrity, fire safety or the architectural appearance of the building (Article 6, paragraph 1, items 5 and 19 of the Law on the Management of Condominium Property (ЗУЕС)). Conversely, each owner is entitled to demand compliance with the same standards from others.
Comparable regimes exist in other jurisdictions. In Germany, for example, the Wohnungseigentumsgesetz (WEG) also combines exclusive ownership of units with co-ownership of common property and collective decision-making through an owners’ assembly. In the United States, condominium associations operate as incorporated entities with governing boards and reserve funds, while in England and Wales most multi-unit properties function under long leasehold structures with management companies.
The Bulgarian model, however, is particularly detailed in regulating proportional financial obligations and in mandating the creation of a Repair and Renovation Fund, aimed at ensuring long-term maintenance discipline and structural sustainability.
Condominium ownership in Bulgaria therefore represents not merely cohabitation within a building, but a clearly structured legal regime — one that requires procedural compliance, financial participation and respect for collective decisions in order to maintain stability, safety and predictability in property relations.
In what cases should I contact a condominium lawyer?
It is wise to contact a property lawyer whenever there is a risk that the decisions of the general meeting will be challenged or when there is already a conflict that cannot be resolved by the usual internal mechanisms (invitations, minutes, rules of procedure, control bodies). In practice, the most expensive problems for a building are not the “repair itself”, but procedural errors and lack of evidence — improper convening, incomplete agenda, contentious quorum, protocol defects or missing applications, which then block implementation, collection and funding.
A lawyer is especially needed when you need to prepare or check the documentation for a general meeting so that the decisions are defensible. This includes cases of “tense” meetings with an expected dispute, decisions on significant costs, repairs, major renovations, fixing contributions and the way in which costs are distributed, as well as situations where there are owners who do not live in the building, live abroad or habitually claim not to have been notified. It is here that the legal control over the invitation, the way of notification, the attendance lists, the powers of attorney and the protocol is decisive.
When the condominium has irregular payers, the lawyer is useful not only for “court”, but for the correct collection strategy and for minimizing the conflict. Often the problem is not only non-payment, but also the dispute “I ow/do not owe”, “the costs are incorrectly determined”, “there is no valid solution”. The legal job here is to step on a proper decision, an accurate accounting trail, and clear communication to arrive at a real collectible rather than years of disputes.
In repairs and accidents, the lawyer is valuable when you need to combine quick action and compliance with the rules — for example, in the event of a necessary or urgent repair, when allocating funds, commissioning activities, signing contracts and then having to “protect” the cost to the owners. Such situations often lead to accusations of abuse or refusal to pay, and it is important from the outset to have a clear legal framework — who makes the decision, how it is documented, how expenses are accounted for and how they are distributed.
It is also good to turn to a lawyer in case of conflicts about the internal order and the use of common areas — noise, tenants, short-term accommodation, animals, parking, storage, “seizure” of common areas, installation of facilities or changes to the facade. Usually, these disputes are not resolved by conversations alone, because they require consistent evidentiary actions — written warnings, protocols, decisions, and, if necessary, judicial/administrative procedures.
When the building has a professional manager or plans to outsource management/maintenance, the lawyer is key to the contractual part — scope of authority, accountability, access to documents, rules for spending funds, term clauses, termination and liability. Many buildings “enter” into a bad contract and then pay twice — once for the service and a second time for adjustments, disputes and a change of management.
If you are planning a homeowners' association and applying for funding (incl. for major renovation/renovation), a lawyer helps to avoid mistakes in incorporation, registration and decisions that can make the project inadmissible or offensive. There the risk is highest, because strict documentary discipline and clear representation are required — and in major repairs there are always dissenters.
Last but not least, legal assistance is advisable when working with personal data in the condominium — book of the condominium, lists of occupants, contacts, e-mail addresses, distribution of protocols. Here, mistakes can lead to complaints and penalties, and at the same time, management must have enough information to function.
What is the book of condominium?
The condominium book is the official “register” of the specific building or entrance to the condominium mode, through which the management can identify the stand-alone objects, their owners/users, households and occupants, as well as relevant data on the proper management of the common areas. It is not just a notebook “who is who”, but a tool for legally organizing communication, distributing duties and controlling housing, including during inspections by competent authorities.
The law expressly provides that such a book is created, stored and maintained in any building or entrance in condominium mode and can be on paper or electronically as an electronic document. This is important because it allows the condominium to keep up-to-date data and to organize notification and administration more easily, including electronically when there are contacts provided.
In essence, the book contains specifically certain categories of information that the law lists as mandatory for entry. The data relate both to the property (object) and to the persons who have the right to use it or actually reside in it, as well as to certain arrangements between the owner and the user regarding the management of the common areas. This data set is of practical importance, for example, in the notification of general meetings, in the allocation of current management and maintenance costs, in access control for repairs, as well as in the authentication of occupants in inspections.
The book is maintained on the basis of declarations that the owner or user is obliged to submit within 15 days of acquiring the right of ownership or use, as well as in the case of rental or other legal relationship permitting the residence of third parties. The law also requires an update when certain circumstances change, and the declaration can also be submitted to the e-mail address of the management board/manager, which in practice facilitates the process and reduces disputes “who notified when”.
Access to data is limited and the aim is to combine management needs with personal data protection requirements. The management board/manager and the control board/controller have access, each owner — only to his own data, as well as certain state and municipal authorities in compliance with the rules for the protection of personal data. This means that “free consideration by any neighbour” is not an acceptable standard and improper handling of data can create a risk to the condominium.
Special attention is also paid to animals that are taken to public places — in a separate field of the book are entered data on the animals owned or taken for breeding in the specific facility, and for dogs — the number of the veterinary passport. This part is often important in conflicts in the building and when interacting with competent authorities.
In practice, the book of apartment ownership also has evidential significance as an internal register — for example, about who has stated that they do not use the object for a certain period, which persons reside for more than 30 days on an independent legal basis and when they are registered/written off, as well as what is the built-up area and percentage of ideal parts of the object. This helps management to work predictably and defend its decisions in the event of a dispute.
- What is it:mandatory register for each building/entrance in the condominium regime, which may be paperor electronic
- Who supports it:the management board/manager, entering the data of the declarations submitted
- What fits (core):individual site (purpose and built-up area), ideal parts (in%), owner/user data (incl. e-mail if available), household members, periods of non-use, occupants over 30 days (check-in/out date), owner-user management arrangements
- Timeframes:registration declaration is submitted within 15 daysfrom acquisition of the right of ownership/use and in the case of rental or other legal relationship to third parties; if certain circumstances change, a new declaration is submitted within the same period
- Access to data:manager/management board, control body, the owner of his data and certain state/municipal authorities, in compliance with the protection of personal data
- Separate field for animals:data on animals taken to public places, and for dogs — and veterinary passport number
- Form/Sample:the model of the book and the declaration are approved by the Minister of Regional Development and Public Works
How should properties be managed in the condominium regime in Bulgaria?
The management of properties in the condominium regime in Bulgaria should be organized as a permanent order for the use and maintenance of the common areas, compliance with the internal order and real control over the fulfillment of the obligations of the owners, users and occupants. The Law defines the management precisely as a system of rules and control mechanisms, and not as a “voluntary initiative” of several active neighbors, stating that it covers the order and control over the use and maintenance of the common areas, compliance with the internal order and control over the performance of the obligations of the occupants in the building - Art. 8, para. 1 of the Law on Management of Apartments Ownership (ЗУЕС).
When a building has more than one entrance, the law allows management to be organized at the level of a separate entrance, and this management also covers the common parts adjacent to the separate objects of the respective entrance. This is particularly practical in large buildings and complexes, because it allows clearer reporting and more efficient organization of ongoing maintenance — Art. 8, para. 2 of the Condominium Management Act (ZPP).
The forms of governance under the law are two — by a general meeting and/or by an association of owners, both of which are built around the idea of collective decision-making and their implementation by elected bodies. This means that “management without a general meeting” is in practice management with a high risk of illegality, disputes and inability to effectively collect contributions - Art. 9 of the Condominium Management Act (ЗУЕС).
The governing bodies are the general meeting and the board of directors (or the manager), with the general meeting being the body that sets the rules, selects the persons, adopts the budget and makes the key decisions about expenses and repairs. The law explicitly refers to these bodies — Article 10, item 1 and item 2 of the Condominium Management Act (ЗУЕС).
Practically correct management begins with the active functioning of the general meeting, because it adopts and modifies the rules of internal order, selects and discharges a management board/manager and control body, adopts an annual budget and reports, determines the amount of contributions for management and maintenance and the amount of contributions to the “Repair and Renovation” fund, adopts a plan for repairs and decisions on urgent and utility costs, for renting common areas, for major repairs/renovations, for placing advertisements/facilities, as well as a number of other solutions that in practice” move “the life of the building. These powers are regulated in detail — Art. 11, para. 1, items 1—18 of the Condominium Management Act (ЗУЕС), and the law expressly emphasizes that the general meeting cannot refuse a decision on expenses that are necessary for the maintenance or restoration of the common parts — Art. 11, para. 2 of the Condominium Management Act Property Management (ЗУЕС), as well as that the Rules of Internal Order are mandatory — Art. 11, para. 3 of the Condominium Management Act (ЗУЕС).
In order for the management to have real legal stability, the general meeting must be convened and held in the prescribed order, because it is procedural violations that most often “overthrow” decisions in court. The law requires that the general meeting be convened at least once a year by the management board/manager or by the control board/controller, and can also be convened at the request of owners with at least 20% ideal shares, and the manager is obliged to convene it within 10 days. In case of inaction of the manager, the law allows these owners to convene it themselves, and in urgent cases or in the absence of a meeting for more than a year — any owner or user may convene a general meeting — Art. 12, paras. 1—5 of the Condominium Management Act (ЗУЕС).
The convening procedure is strictly formalised because it guarantees informed participation and transparency. The convening shall be carried out by an invitation placed in a conspicuous and publicly accessible place at the entrance not later than 7 days before the meeting, and in case of urgency — no later than 24 hours, noting the date and time of placement and drawing up a protocol therefor, and the meeting being scheduled at the earliest on the eighth day after placement (or after 24 hours in case of urgency). The invitation must contain the agenda, specific draft resolutions in case of absentee voting, date/time/place, deadline for absentee voting and e-mail address for correspondence, and on certain days a general meeting should not be convened except in urgent cases — Art. 13, para. 1, para. 7 and para. 8 of the Floor Management Act ownership (ЗУЕС). For owners/users who do not use the property or are absent for more than a month, it is key to have an address and an e-mail address for receiving invitations, because otherwise the notification is considered to be made by placing the invitation at the entrance — Art. 13, paras. 2—4 of the Condominium Management Act (ЗУЕС).
Participation in the general meeting can be in person or by proxy under clearly regulated rules, including the possibility of oral authorization, written authorization, as well as special rules for notarization or attorney's power of attorney, as well as a restriction on one person representing a maximum of three owners/users. Proper documentation of the representation is important because deficiencies in the powers of attorney often lead to challenges of the decisions — Art. 14, paras. 1—5 of the Condominium Management Act (ЗУЕС).
The quorum is the central “filter” for the validity of the meeting and should be strictly monitored during registration. As a general rule, the meeting is held in the presence (in person or through representatives) of at least 51% ideal parts, in the absence of a quorum the envisaged postponement and subsequent hypotheses apply, including the possibility under certain conditions to hold the meeting at a lower threshold, and in the case of an owner with more than 51% ideal parts, the law introduces an additional requirement for the presence of at least 75% ideal parts. These rules are regulated — Art. 15, paras. 1—4 of the Condominium Management Act (ЗУЕС).
The holding of the general meeting must be organized in such a way that there is traceability of decisions and defensibility in case of dispute. The law allows the meeting to be held in an appropriate place in the condominium or near it and allows a mixed regime - in person and online by videoconference, with the guarantee of identity and with explicit reflection in the minutes of voting and statements. The Assembly may not adopt decisions outside the agenda, except in case of urgency, and a protocol must be kept with content that the law describes in detail, including a list of persons who appeared, ideal parts, object number, vote “for/not/abstained”, signatures, statements and adopted decisions. The protocol shall be drawn up within 7 days, shall be published in the prescribed manner, certified copies shall be provided, and a special procedure shall be provided for contesting its contents within a time limit. These rules follow from Art. 16, paras. 1-10 of the Condominium Management Act (ЗУЕС).
Decisions of the general meeting are adopted according to a system that combines the principle of ideal parts with different majority thresholds according to the severity of the decision. As a general rule, decisions are made with a majority of more than 50% of the ideal parts presented, but for certain categories of decisions, the law requires qualified majorities, including 100%, 75%, more than 50% ideal parts or other special thresholds, the detailed matrix is regulated in Art. 17, paras. 1—3 of the Condominium Management Act (ЗУЕС). The law also regulates a mechanism for determining the ideal parts, when they are not clearly indicated or the sum is not 100%, as well as the procedure for approving these calculations by the general meeting — Art. 17, paras. 4—6 of the Law on Management of Condominium Property (ЗУЕС), which is practically important in old cooperatives and incomplete documents.
A significant new opportunity for better governance is the absentee voting for certain decisions, which allows persons with voting rights who cannot participate in person or online to submit a declaration in paper or electronically signed in the appropriate order, within 7 days after the general meeting, in the event of a preliminary decision to hold an absentee vote and in the case of draft resolutions set in the invitation. These rules are regulated — Art. 17a, paras. 1—5 of the Condominium Management Act (ЗУЕС).
The execution of decisions and day-to-day management are entrusted to the board of directors (or manager), who is the executive body of the condominium and is elected for a term of up to two years, with the law governing the composition, the election of the chairman and who can be elected, including the possibility of being a person designated by the owner and entered in the condominium book. The law also allows the delegation of powers to a professional manager-merchant under certain majorities and with term discipline of the contract, avoiding automatic renewals and excessively long terms. These rules derive from Art. 19, paras. 1-9 of the Condominium Management Act (ЗУЕС), and the law also introduces the principle that an owner/user may refuse to participate in the management only in the event of permanent factual impossibility, long-term absence or in the event of a proposal for re-election — art. 20 of the Condominium Management Act ownership (ЗУЕС).
The Management Board should work as a body with regularity and minutes, because the law requires a meeting at least once every three months and decisions in the presence of two thirds of the members, as well as a mandatory protocol for the meetings — Article 22, paragraph 1 and paragraph 2 of the Law on Management of Condominium Property (ЗУЕС). It is also key that the manager organizes the execution of the decisions, monitors the internal order, keeps the documentation and protocols, creates and maintains the book of the condominium, prepares the budget and the repair plan, represents the condominium, including before a court in certain claims, and has expressly settled reporting obligations. This follows from Art. 23, paras. 1—7 of the Condominium Management Act (ЗУЕС), including the rules for annual reporting and publicity of the report — Art. 23, para. 2 of the Condominium Management Act (ЗУЕС), as well as the rules for handing over documents and funds upon change of management within 15 days with a protocol — Art.. 23, para. 7 of the Condominium Management Act (ЗУЕС).
Control is the third pillar of good governance and the law allows the election of a control board (controller) for a period of two years, with rights of access to documentation and control over the implementation of the budget and spending decisions, with a requirement to check the treasury at least once a year and report to the general meeting. The Law also regulates rules on incompatibility (in order to have real independence), regularity of meetings and possibility of remuneration by decision of the General Assembly — Art. 24, paras. 1—10 of the Condominium Management Act (ЗУЕС).
What funds must the condominium necessarily maintain and how are the contributions to them determined?
The condominium under the Condominium Management Act (ЗУЕС) has an explicitly stated “fund”, which the general meeting is obliged to create and maintain, and separately there are management costs and expenses for the maintenance of the common parts, for which the law regulates how monetary contributions are determined and distributed, without naming them as a “fund”. Therefore, when looking for the exact legal answer “what funds”, the mandatory by name is one, and the rest of the cash flows are settled as expenses and monthly contributions.
The compulsory fund is a “Repair and Renovation” fund, which the general meeting of owners or the general meeting of the association “creates and maintains”. This follows directly from Art. 50, para. 1 of the Condominium Management Act (ЗУЕС). The funds in the fund are collected from monthly contributions from the owners in an amount determined by a decision of the general meeting according to the ideal shares of the individual owners in the common parts of the condominium, with the law setting a lower limit “but not less than one percent of the minimum wage for the country”, as well as from “other sources”. This is regulated in Art. 50, para. 2, item 1 and item 2 of the Condominium Management Act (ЗУЕС). Practically, this means that the general meeting determines the specific monthly contribution for each owner, tying it to the percentage of ideal parts, and cannot go below the legal minimum related to the minimum wage for the country.
The funds in the Repair and Renovation Fund are collected in a “special purpose account”, which is opened in the name of the condominium or the association, which is a key requirement for the segregation and traceability of these funds. This follows from Art. 50, para. 3 of the Condominium Management Act (ЗУЕС). The expenditure of funds is limited to legally specified directions: for carrying out the activities under Art. 48 and Art. 49 “and for equipment”, for the implementation of measures and instructions from the technical passport of the building, as well as for “other expenses determined by a decision of the general meeting”. This is regulated in Art. 50, para. 4, items 1—3 of the Condominium Management Act (ЗУЕС). The actual disposal of the funds from the account is carried out by the Chairman of the Management Board (the manager) on the basis of a decision on their use adopted by the General Assembly, which is regulated in Art. 50, para. 5 of the Law on Management of Condominium Property (ЗУЕС).
Separately from the fund, the law regulates monthly contributions “for the maintenance of the common areas”, which are made by the owners, users and inhabitants of independent sites and are “in the amount determined in the rules of internal order or by decision of the general meeting”. This is an independent rule, different from the “Repair and Renovation” fund, and follows from Art. 48, para. 8 of the Condominium Management Act (ЗУЕС). It is important that here the law speaks of “monthly contributions” for maintenance, not a fund, and leaves the determination of the amount to the internal regulations or to the general meeting.
When determining and allocating the management costs and the costs of maintaining the common parts, the law gives a basic rule and additional hypotheses that affect the amount to be paid. According to the basic rule, the costs are distributed “equally according to the number of owners, users and occupants and members of their households regardless of the floor”, and for a stand-alone object in which there is a stay of no more than 30 days in a calendar year, the costs are paid “in the amount determined for one owner, user or occupant”. This follows from Art. 51, para. 1 of the Condominium Management Act (ЗУЕС). The law also explicitly provides for exemption for children under 6 years of age, with “no expenses paid” in the relevant order, which follows from Art. 51, para. 2 of the Condominium Management Act (ЗУЕС).
The law also introduces a special rule for an independent object in which a profession is practiced or an activity related to the access of outsiders is carried out, in which case the owner/user/inhabitant pays the management and maintenance costs “in the amount of three to five times the amount” determined by the “reasoned decision” of the general meeting. This follows from Art. 51, para. 5 of the Condominium Management Act (ЗУЕС). If a separate entrance is provided for stand-alone objects, then the amount is paid according to the general rule, which follows from Art. 51, para. 6 of the Condominium Management Act (ЗУЕС). The law also adds a rule for animals subject to removal, whereby certain expenses (electricity, water, heating, cleaning of common areas and subscription service of the elevator) are paid “for each animal in the amount of one inhabitant”, which is regulated in Art. 51, para. 7 of the Law on Management of Condominium (ЗУЕСZ).
Regarding “how” the management and maintenance contributions are determined, the law also allows them to be collected in a “special purpose individual current account” in the name of the condominium, the disposal of the funds being carried out by the chairman of the management board (the manager) on the basis of a decision on their use adopted by the general meeting. This is regulated in Art. 51, para. 8 of the Condominium Management Act (ЗУЕС). It is also essential that the law makes it possible to allocate management costs and maintenance costs “by decision of the general meeting of owners or the association” in one of three ways: equally according to the number of persons and households, according to the percentage of ideal parts, or equal to a separate site. This follows from Art. 51, para. 9, items 1—3 of the Condominium Management Act (ЗУЕС), with the first way the law expressly adds that the owner of an uninhabited detached site pays the maintenance costs “in the amount of one inhabitant”.
In the repair part, it is important to distinguish the source of funds and the principle of distribution. The law provides that repair, major renovation, reconstruction and redevelopment of common parts or replacement of common installations and equipment is carried out by decision of the general meeting, and the costs of these activities, if a decision is adopted, are distributed among the owners in proportion to the ideal parts. This follows from Art. 48, para. 1 and para. 3 of the Condominium Management Act (ЗУЕС). In the case of “urgent repair”, the law provides for the immediate allocation of funds from the “Repair and Renovation” fund by a decision of the Management Board (the manager), which is regulated in Art. 49, para. 1 of the Law on Management of Condominium Property (ЗУЕС), and in the case of absence/insufficiency of funds, a general meeting is convened to raise funds, which follows of Art. 49, para. 2 of the Condominium Management Act (ЗУЕС).
- Mandatory fund by name: Fund “Repair and Renovation”, which the general meeting of owners or the association establishes and maintains under Art. 50, para. 1 of the Condominium Management Act (ЗУЕС)
- How are contributions to the “Repair and Renovation” fund determined:monthly contributions from the owners, determined by a decision of the general meeting in accordance with the ideal parts, but not less than 1% of the minimum wage for the country, plus other sources under Art. 50, para. 2 of the Law on Management of Condominium (ЗУЕС)
- Where are they raised and how the funds from the fund are spent:in a special purpose account in the name of the condominium/association, expenses are spent on the activities under Art. 48 and Art. 49 and on equipment, measures and instructions from the technical passport and other expenses by decision of the general meeting, the order being made by the chairman/manager on the basis of a decision of the general meeting under art. 50, paras. 3-5 of the Law Condominium Management Office (ЗУЕС)
- What else is collected monthly (not called a “fund”):monthly contributions for the maintenance of the common parts of owners, users and occupants in the amount according to the Internal Order Regulations or by a decision of the General Assembly under Art. 48, para. 8 of the Condominium Management Act (ЗУЕС)
- How management and maintenance costs are determined/allocated:as a rule equal according to the number of owners/users/inhabitants and household members, with rules for a site up to 30 days a year, for children under 6 years of age, for activities with access by outsiders (3-5 times by reasoned decision), for a separate entrance and for animals subject to removal, under Art. 51, paras. 1—7 of the Floor Management Act Ownership (ЗУЕС)
- Possible ways of distribution by decision of the general meeting:equal according to the number of persons and households, or according to the percentage of ideal parts, or equal to a separate object under Art. 51, para. 9, items 1—3 of the Condominium Management Act (ЗУЕС)
What is the association of owners in a building in condominium mode?
The owners' association is a special legal entity that owners in one building (or entrances, and in the case of related construction, several buildings) can establish in order to absorb financing for major repairs and/or major renovations, including funds from the European Union, state or municipal budget, grants and subsidies, as well as and own or credit funds. The law explicitly regulates this purpose and legal status, stating that the association is a legal entity created under the order of the Condominium Management Act (ЗУЕС), and that it can carry out other activities related to the management and maintenance of the common areas, including to use funds from other sources of financing - Article 25, para. 1 and para.. 2 of the Condominium Management Act (ЗУЕС).
The practical meaning of the association when applying for “remediation” and repair is that it concentrates representation and financial flow in one entity with clear authorities and rules. The association is entered in a public register at the location of the building and separately registered in the BULSTAT register, and for the purposes of financing, the law also provides for an explicit obligation to open a bank account for the collection of expenses and for the absorption of financing. This makes the process more “banking” and traceable (which is a standard requirement in project procedures) and reduces the risk of blocking payments due to unclear legitimation — Art. 25, para. 5 and para. 8 of the Condominium Management Act (ЗУЕС).
The incorporation does not take place automatically, but through a constituent assembly, and the law sets a high threshold of representativeness — the association is created by owners representing not less than 67% of the ideal parts of the common parts of the condominium. If the association is only for entrance or for several entrances/buildings in related construction, the threshold is again not less than 67% in relation to the ideal parts in the respective entrance/s/buildings, and in case of “not collecting up to 100%” of the ideal parts, the rules for adjusting/approving the ideal parts are applied — Art. 25, para. 3 and para. 4 of the Management Act of the condominium (ЗУЕС). This is key to applying, because if you do not reach the threshold at the time of incorporation, the project application will usually not be able to be submitted through an association, and the association itself cannot validly arise in accordance with the law.
The procedure begins with the initiative for a constituent assembly, which can be taken by any owner, including with a draft agreement on the creation of the association. The call shall be made by invitation, placed in accordance with the general procedure for the invitations to the general meeting, and the draft agreement shall be attached to the invitation; the invitation must contain the agenda, place, date and time — Art. 26, paras. 1—3 of the Condominium Management Act (ЗУЕС). The constituent assembly is regular if owners with not less than 67% ideal parts are present (personally or through a representative); the representation takes place according to the rules of proxy; the meeting elects a chairman and a protocol officer — Art. 27, paras. 1—3 of the Condominium Management Act (ЗУЕС).
Several “constituent” decisions are taken at the constituent assembly: a decision on incorporation, determination of a name (with the requirement to contain a settlement and full administrative address, and in case of district division — also the area), adoption of an agreement on creation, election of a management council/manager and control council/controller and possibly a term of existence. The law also introduces a very important rule of unanimity in some of these decisions — decisions on establishment, designation, agreement and term are adopted unanimously by all owners present with the necessary threshold under para. 1, while the choice of bodies is adopted by a majority of more than half of the owners under para. 1. The protocol and the agreement shall be signed by all members or their representatives — Art. 27, paras. 4—6 of the Condominium Management Act (ЗУЕС). In practice, this means that the agreement must be well “ironed out” in advance, because unanimity is a frequent point of blockage.
The agreement itself is the “charter” of the association and the law requires it to contain at least: name and address, subject of activity and term (when the subject is appropriation of funds under Art. 25, para. 1 — the term is indefinite), order for adoption of decisions, composition/mandate/organization of work of the management and control body and other agreed conditions. The Minister of Regional Development and Public Works approves an exemplary model — Art. 28, paras. 1—3 of the Condominium Management Act (ЗУЕС). In practice, it is precisely the order of decisions and financial rules (how contributions are collected, how costs are approved, how contracts are signed) are critical for projects.
After the establishment, the registration follows: the chairman of the management council (the manager) submits within 14 days an application for registration in the municipal administration, attaching a list of owners, a certified copy of the protocol, a certified copy of the agreement and notarized samples of the signatures of the representatives of the association — Art. 29, para. 1 and para. 2 of the Law Condominium Management Office (ЗУЕС). This package of documents is also the “backbone” when applying, because it proves the representative power and valid existence of the applicant.
How to apply for a European project for renovation and repair of an old building through the owners' association?
In terms of “how we apply”, the legal part is to create and register an association and make valid decisions for major renovation/overhaul and absorption of funds. The law explicitly stipulates that the general meeting of the association adopts a decision on major renovation, overhaul and utilization of funds from the EU/budget/subsidies/own funds/other sources with a majority of not less than 51% ideal parts of the common parts, and for termination of the association — not less than 67%. Separately, the law also regulates solutions for utility costs and loans, which have a higher threshold (75%), when the project provides for a credit component — Art. 33, para. 2, item 3 and item 5 of the Condominium Management Act (SPM). In practice, this is the reason why in “mixed” models (grant + own participation/loan) it is necessary to carefully plan exactly what funding framework is approved, so that it does not later turn out that the majority is insufficient for the credit part.
Membership also has a “locking” effect in the case of an approved project: an owner cannot terminate his membership in the association in the event of an approved project to absorb funds or own funds for major renovation/renovation. Termination of membership is permissible only after the expiration of the guarantee periods under the project, but not earlier than 5 years from the completion of the construction and installation works, and is done by a written declaration with a notarized signature to the board of directors — Art. 30, para. 2 and para. 3 of the Condominium Management Act (ЗУЕС). This is important to explain to the owners in advance, because the tension “I want to go out, I do not agree” often arises after the start of the project.
The bodies of the association are parallel to those of the condominium — general meeting, management council/manager and control board/controller, and representation before the municipality and third parties is carried out by the management council/manager — Art. 31, para. 1 and para. 2 of the Condominium Management Act (ЗУЕС). The general meeting of the association is held at least once a year, and for the order, quorum and conduct (in addition to specific powers) the rules for the general meeting of owners apply — Art. 32, para. 4 and para. 5 of the Condominium Management Act (ЗУЕС). The Management Board/Manager has the power to organize the execution of the decisions, represent the association, declare changes for registration, register in BULSTAT and issue a document on the presence/absence of obligations — Art. 34, paras. 1—3 and para. 2, item 1, item 2, item 7—10 of the Law on Management of Condominium Ownership (UCE). The Control Board supervises the implementation of the budget and the expenditure of funds and carries out an audit of the cash register at least once a year — Art. 35, para. 4 and para. 5 of the Condominium Management Act (ЗУЕС).
Comparatively, a similar mechanism exists, for example, in Germany, where the community of owners (Wohnungseigentümergemeinschaft) can make decisions on upgrades and energy efficiency and arrange financing, but a separate “legal entity for the project” is not created in the same special order; the Bulgarian model with a SEU association is more target-oriented towards financing interaction and interaction with public programs, with clear entry and documentary requirements, which facilitates administration, but sets higher procedural thresholds.
- What is the Association:legal entity under the Law on Management of Condominium Ownership (ЗУЕС), established mainly for the absorption of funds for major renovation/renovation, including European financing, subsidies, own and credit funds
- Who can establish it and with what threshold:owners with no less than 67% ideal parts(for a building, entrances or several connected buildings)
- How it is constituted:by a constituent assembly convened by invitation + attached draft agreement, with a quorum of at least 67% ideal parts
- What is adopted at the constituent assembly:decision on establishment, name and address identifier, agreement, choice of management and control body (and possible deadline)
- What the agreement contains:subject and term, order of decisions, bodies (composition/mandate/work) and other arrangements
- How to register:application to the municipality within 14 days, with attached list of members, certified protocol, notarized agreement and notarized samples of the signatures of the representatives; then registration in BULSTAT
- How to “unlock” an application for sanitation:valid decision of the general meeting of the association for major renovation/overhaul and for the utilization of funds, and if not all owners are members — additional acceptance by the general meeting of owners
- What to look out for when financing:If the project includes credit component, check if the decision falls within the higher majority hypotheses (e.g. 75% for utility costs/credits)
- What happens to membership in an approved project:an owner cannot terminate membership in an approved project; termination is possible after the warranty periods, but not earlier than 5 yearsfrom the conclusion of the SMR, with a notarized declaration
- Financial organization:detection of bank accountof the association for expenditure and absorption of funding, plus internal rules on expenditure and control
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