Maintenance of properties with condominiums

The boards of the homeowners' associations are responsible for properties with very high-value condominiums. These boards, which are elected by the residents, are rarely professionals with insight into the extensive legal, financial and technical tasks that come with maintaining the property; and if mistakes are made, it is the homeowners' association, and thus the individual condo owners, who must pay first.

Owners' Association

The owners' association brings together the owners of the individual apartments in the property. The owners have a common interest in ensuring that the property is maintained. This is also where the community ends in many cases. Some owners only want to sacrifice the absolute minimum on maintenance, while others want the property to be in tip top condition at all times. The problem may be that a higher maintenance expense, in addition to burdening the individual owner's finances, is not necessarily reflected in a higher sales price for the apartment.

According to the standard statutes for homeowners' associations, which apply if the homeowners' association has not adopted and registered other statutes for the property, the homeowners' association must carry out "responsible exterior maintenance and renovation." It also follows from the standard statutes that the homeowners' association is liable to the individual owner if a lack of maintenance results in damage to the individual's apartment.

Owners' Association

A problem can arise when the homeowners association does not maintain the property to the necessary extent, and as a result, damage occurs. The repair must be paid for by the entire homeowners association, regardless of who has made the decision that maintenance should not be carried out, and the costs are distributed according to the distribution figures of the apartments. It is therefore important that the buyer ensures that the price of the apartment corresponds to the condition of not only the apartment but also the entire property, and that the price takes into account the costs of future maintenance of the property.

The individual owner must take care of all interior maintenance of his own apartment, in the same way as if it were a house. In return, the owners' association must take care of the maintenance of the walls, drains and supply lines, up to the point where they branch off to the individual apartments. The boundary runs along the edge of the individual apartment. Unless otherwise agreed in the owners' association, the owner must, for example, be responsible for painting the windows on the inside, while the owners' association must paint the windows on the outside.

The board's area of responsibility

The board of directors of the homeowners' association is obliged to be responsible for the daily operation of the homeowners' association, to ensure good order, cleanliness, maintenance and necessary renovation of the property. If the board of directors does not comply with its duties, and this results in a loss for the homeowners' association, the homeowners' association can file a claim for compensation against the board members who have either negligently or intentionally caused the damage. The board as a whole cannot be held liable. If it is decided at a board meeting that a necessary repair will not be carried out, and the decision results in damage to the property, the claim for compensation can only be filed against the board members who voted not to carry out the repair. If a board member voted to repair, or was not present at the board meeting in question, then that person has done nothing wrong and cannot therefore be ordered to pay compensation. It is therefore important for board members who do not agree with the majority to have their protest recorded in the meeting minutes in order to be able to prove it later.

If the owners' association wishes to make a claim for compensation against one or more board members, it must be approved by a majority at the general meeting. Since the board of directors in some owners' associations already constitutes the majority, the general meeting in these associations will not be prepared to make a claim for liability against the board members. If the general meeting chooses not to make a claim for compensation, the individual owner of the apartment can choose to make a claim for compensation themselves, with a claim for their own share of the total loss that the owners' association has suffered. However, this will be done at their own expense and risk.

Adviser

It can be an expensive pleasure to own an apartment in a property where the board of directors has no control over things. However, many homeowners' associations function perfectly well on a daily basis without outside help, and without the board having any special insight into the legal, financial and technical tasks associated with managing an homeowners' association. When minor repairs need to be made, a handyman is called in and the bill is paid by the homeowners' association.

The problems most often arise when major maintenance work needs to be carried out.

For larger projects, it will in most cases be worthwhile for the homeowners' association to hire one or more advisors to handle the practical aspects of the work. The advisors will have insight into the legal, financial and technical areas. The cost of the advisor will be offset by the fact that the homeowners' association will be able to feel secure in the fact that the probability of the work being carried out correctly is increased while the risk of large unforeseen expenses in connection with the work being carried out is reduced.

The owners' association and the board should therefore decide for themselves whether they consider themselves competent to make the necessary decisions and be responsible for the administrative tasks expected of them, both in daily life and in connection with major works, or whether it will be necessary to hire one or more advisors to handle the tasks.

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