What applies and when they are time-barred
The management of common property is a long-standing problem for the tenants of apartment buildings, causing tensions and difficulties in the maintenance of the buildings. The situation is worsening, especially with the upcoming energy upgrades that will become mandatory under European directives.
What about the significant arrears in utility bills?
When large debts accumulate, the manager must call a general meeting. There it is decided whether to initiate legal collection proceedings through a lawyer and whether to increase the condominium's reserve to continue payments of obligations. Informing debtors of the consequences is critical.
When are debts time-barred?
Claims for unpaid utilities are time-barred after five years from the year they were created. This makes timely action by management essential.
Who is liable for debts after the sale of an apartment?
The buyer is only liable for debts arising from the day of purchase onwards. Previous debts are borne by the seller. However, if the seller has no assets or is difficult to trace, the other owners are required to cover the shortfall.
Can a "payment order" be issued?
Yes, the administrator can apply for a court order or a payment order against the defaulters. This requires the presentation of evidence such as computerised notices and invoices of debts.
What are the next steps if the debtor is indifferent?
Notification of a claim or payment order often works. If the debtor still fails to pay, foreclosure proceedings or even an auction of the property can be initiated.
Why has the problem grown?
The problem is exacerbated by the many apartments owned by foreign owners, who often do not pay utilities and do not provide contact details. When the properties are sold, the new owners refuse to cover previous debts, with the remaining tenants bearing the cost.
Proposals for legislation
POMIDA has proposed to require an affidavit from the manager that there are no outstanding public utility debts to complete the transfer of a property. If there is no trustee, the seller must affirmatively state that there are no outstanding debts.
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