Contents
- The Supreme Court of Cassation has opened Interpretative Case No. 5/2025 to decide whether individual maintenance contracts in condominiums are void.
- Some courts hold them void because the management of common parts is a competence of the general meeting under the Condominium Management Act, while others uphold them as valid service contracts under the Obligations and Contracts Act.
- Pending maintenance fee cases may be stayed until the interpretative ruling (Art. 229(1)(7) of the Civil Procedure Code).
- Do not stop paying on your own initiative. If the Supreme Court holds the contracts valid, you will owe the amounts together with interest and costs.
The Supreme Court of Cassation has opened Interpretative Case No. 5/2025 to rule definitively on whether individual maintenance and management contracts in condominiums are void. Case law has so far been inconsistent, with some panels upholding them as valid and others holding them void for circumventing the Condominium Management Act. The ruling will affect thousands of owners in gated and holiday complexes.
Why Has the Supreme Court Opened Interpretative Case No. 5/2025?
On 24 November 2025, the President of the Supreme Court of Cassation ordered the opening of Interpretative Case No. 5/2025. The reason is a serious conflict between the decisions of different panels.
The main question on which the court must give a binding answer is the following.
“Is a contract for the maintenance and management of common parts, concluded by an individual unit owner with a third party (a company), wholly or partly void where the building is subject to the condominium regime?”
This concerns mainly properties in so-called holiday complexes, which do not meet the statutory definition of a “gated complex” but operate as such.
What Is the Legal Dilemma and Why Does It Matter to Owners?
Until now, Bulgarian courts have been divided between two opposing views, creating legal uncertainty for owners and investors.
The two positions the Supreme Court will consider are as follows.
Position 1 – The Contracts Are Void (in Favour of Owners)
This group of judges (for example, Judgment No. 80 of 4 November 2021) holds that the management of common parts is the exclusive competence of the general meeting of the condominium.
- An individual owner cannot alone entrust the management of common parts to a third party.
- Such contracts circumvent the mandatory provisions of the Condominium Management Act.
- If the contract was concluded individually rather than by a decision of the general meeting, it is void and gives rise to no obligation to pay fees.
Position 2 – The Contracts Are Valid (in Favour of Developers and Facility Managers)
The other group of judges (for example, Judgment No. 84 of 7 July 2016) holds that these are innominate service contracts (for work or mandate) under the Obligations and Contracts Act.
- The owner has voluntarily undertaken to pay for cleaning, security and maintenance.
- This does not usurp the functions of the general meeting but supplements them.
- Freedom of contract allows anyone to enter into such an agreement.
What Does This Mean for Pending Maintenance Fee Cases?
If you are currently involved in a case over unpaid maintenance fees, or are considering one, the opening of Interpretative Case No. 5/2025 is a key development.
Under the rules of procedure (Art. 229(1)(7) of the Civil Procedure Code), courts have grounds to stay pending cases that depend on the answer to this legal question.
Our Advice
- For claimants (companies) – expect delays in proceedings. You must prove that the services were actually provided, not merely that a contract exists.
- For defendants (owners) – if you have a pending case, your lawyer may apply for a stay of proceedings until the Supreme Court rules. This may save you costs if the ruling goes in your favour.
Who Will Take Part in the Decision?
The Supreme Court does not decide in a vacuum. The order provides that opinions will be submitted by a number of institutions and experts, which ensures a thorough analysis.
- The Supreme Bar Council
- The Minister of Justice and the Minister of Regional Development
- The Ombudsman of the Republic of Bulgaria
- The law faculties of Sofia University, UNWE, Plovdiv University, Veliko Tarnovo University and New Bulgarian University
- Associations of condominium management companies
This broad consultation reflects the significant public interest and the social impact the ruling will have on the property market.
Do you have a maintenance fee dispute? The situation is evolving and calls for an individual approach. Do not rely on general information until the Supreme Court has ruled. Our civil law team is following the case closely. Contact us for a legal analysis of your contract.
Frequently asked questions
What is Interpretative Case No. 5/2025?
A case before the General Assembly of the Civil and Commercial Chambers of the Supreme Court of Cassation, opened on 24 November 2025, to harmonise case law on the validity of individual maintenance contracts in condominiums.
Does this apply to gated complexes?
The question mainly concerns buildings under the condominium regime that are not a “gated complex” within the meaning of § 1(3) of the Additional Provisions of the Condominium Management Act but operate as such through individual contracts.
Should I stop paying maintenance fees while awaiting the ruling?
It is not advisable to stop paying without consulting a lawyer. If the Supreme Court holds the contracts valid, you will owe the amounts together with interest and costs.
When is the Supreme Court's ruling expected?
Interpretative cases usually take between one and two years because of their complexity and the number of participants submitting opinions.
