Contents
- Debts owed to the condominium are recovered under the Condominium Management Act and, in the event of non-payment, by an order for payment under Art. 410 of the Civil Procedure Code.
- Before acting, the condominium manager checks the amount of the debt, the debtor's status and whether any part of it is time-barred.
- The general meeting decides on recovery through the courts and its costs. The notice is posted at least 7 days in advance.
- The debtor receives an invitation to pay voluntarily under Art. 38 of the Condominium Management Act before an application is filed with the court.
Condominium ownership in Bulgaria affects many people, particularly those living in apartment buildings and, above all, condominium managers. The legal framework governing condominiums is an important part of daily life for the residents of such buildings. This article aims to provide practical guidance and clarity on the rights and legal options for recovering debts from owners, users and occupants.
Main Provisions
- The principal statute is the Condominium Management Act.
- In the event of non-payment, the condominium manager may apply for an order for payment under Art. 410 of the Civil Procedure Code and open enforcement proceedings.
Steps to Take When a Neighbour Does Not Pay
Preliminary Preparation
- Prepare a statement of income and expenditure.
- Check whether there is a report from an audit of the cash.
- Review the condominium's internal rules.
- Review previous decisions of the general meeting on deferring or waiving debts.
- Establish the status of the debtor (owner, user or occupant).
- Make sure the amount owed has been calculated correctly.
- Check whether any part of the debt is time-barred.
- Obtain quotes for legal assistance in advance (for possible support in the process).
Convening the General Meeting of Owners
- The general meeting is convened by the condominium manager, the management board or owners holding at least 20% of the undivided shares.
- The notice is posted in a prominent place in the building at least 7 days before the meeting.
- The agenda must set out specific items, including
- a report on the debts (amount, origin, debtor);
- setting a deadline for voluntary payment;
- a decision on recovery through the courts in the event of non-payment;
- approval of the costs of court and legal fees;
- a decision on the choice of a lawyer and on opening a bank account (if necessary).
Holding the General Meeting
- A quorum of at least 51% of the undivided shares is required. If there is no quorum, the meeting is held one hour later with at least 26%, or on the next working day with no minimum share requirement.
- Voting is by undivided shares in the common parts of the building.
- Decisions are recorded in minutes, which are drawn up within 7 days and posted in a prominent place.
Implementing the Decisions of the General Meeting
- Decisions are implemented within the time limits they set, or 14 days after the minutes are posted.
- Serve the debtor with an invitation to pay voluntarily under Art. 38 of the Condominium Management Act.
- If the debtor does not pay voluntarily, apply for an order for payment (Art. 410 of the Civil Procedure Code).
Application for an Order for Payment (Art. 410 of the Civil Procedure Code)
- The application must identify the debtor precisely (name and personal identification number).
- It must clearly state the basis and amount of the debt.
- A copy of the decision of the general meeting on which the debt is based must be attached.
- The court does not examine evidence, only whether the claim is disputed.
- If the debtor objects, claim proceedings follow.
What Do Owners, Users and Occupants Pay?
- Owners are required to pay
- the costs of repair, reconstruction, alteration, major renovation and contributions to the Repair and Renovation Fund;
- the costs of managing and maintaining the common parts (electricity, water, lift, cleaning and others).
- Users and occupants pay
- the costs of managing and maintaining the common parts, but not the costs of repair and reconstruction, unless otherwise agreed with the owner.
Specific Features of Meetings
- An owner may appoint a member of their household or another owner as proxy, orally or in writing (without notarisation), or a third party by a notarised power of attorney.
- The meeting may also be held online by videoconference.
- Decisions to waive or defer debts require a majority of at least 75%.
Good Practice
- Keep meticulous records (minutes, notices, documents).
- Follow the procedures of the Condominium Management Act for convening and holding meetings precisely, to avoid challenges.
- Consult a lawyer, especially if the debtor raises an objection.
Bulgarian condominium legislation aims to ensure good neighbourly relations and effective management of the common parts. Understanding and observing the law are key to peaceful coexistence and good condominium management. Owners and condominium managers should be informed and active participants in the process, so that the common parts of the building are well maintained and management is transparent and effective.
If you need assistance with recovering amounts owed by co-owners, our civil law and real estate teams can help.
Frequently asked questions
What quorum does the general meeting require?
At least 51% of the undivided shares. If there is no quorum, the meeting is held one hour later with at least 26%, and if there is still no quorum, on the next working day with no minimum share requirement.
What do users and occupants pay?
The costs of managing and maintaining the common parts. The costs of repairs and contributions to the Repair and Renovation Fund are borne by the owners, unless otherwise agreed.
What happens if the neighbour objects to the order for payment?
Claim proceedings follow, in which the condominium must prove its claim before the court.
Can the debt be waived or rescheduled?
Yes, by a decision of the general meeting adopted by a majority of at least 75%.
