The Law on Premises Ownership – significant changes

This sweeping change in property management, introducing numerous changes to the Law on Premises Ownership, among other things, is contained in the government’s draft law on the National Property Stock.
The consequence of the regulations is that the provisions for at least four-flat buildings of the Law on Premises Ownership, rather than the relevant provisions of the Civil Code on joint ownership, will apply.

Residents of buildings with a minimum of four units will be required to appoint a one- or more-person board to manage the building. The said obligation does not apply to buildings with fewer than four units.

The form of decision-making by owners of a property with fewer than four units will be a unanimous resolution.

A potential problem of unanimous resolution-making is the possibility of

the emergence of numerous disputes over real estate activities, namely repairs, property maintenance, or it represents the community, which has no organizational structure. There is also no procedure provided for the housing community to adopt resolutions, or to challenge them.
It is worth noting that the housing community is not obliged to hold annual meetings to evaluate the functioning of the community.

Expanding the scope of the Premises Ownership Law to include buildings with a minimum of four units will result in the obligation to pass resolutions counted by a majority vote, and the larger the owner’s unit, the more important his vote will be. Each owner is entitled to challenge the resolution within six weeks of its adoption.