Real Estate Owners Associations under the new Law
Law no. 196/2018 regarding the establishment, organization and functioning of owners associations and administration of condominiums, advertised in the Official Gazette of Romania under no. 660 of 30th of July, 2018
This new piece of legislation will enter into force on the 28th of September 2018, when the previous law applicable Law no. 230/2007 regarding establishment, organization and functioning of owners associations, will cease its legal effects.
The main new matters addressed by this law, are mentioned as follows:
- Apartment owners within a residential building (condominium) are obliged to adopt and deliver House Rules (Condominium Rules);
- It is now mandatory for owners’ associations to have an annual repairs (maintenance) and working capital fund;
The rehabilitation of condominiums with several entrances / segments shall be done unitarily and not separately per entrance / segment;
- Administrators of Condominiums will need to be professionally qualified and hold a related certificate;
- Clarification of matters regarding usage, modification and maintenance of the apartment;
- The owner of an apartment who wants to change its designation (from residential to office, for instance) shall be required , in addition to obtaining express approval from the closest neighbours (obligation maintained from the old law), to sign an agreement with the same neighbours disclosing the exact activity that will be carried out in the space , as well as the number of persons who will work there;
- A majority of 2/3 of owner association members, as well as a duly obtained building permit will be required for any attachment made to the building’s façade for advertisement means;
- Clarification of, and an efficient approach to, the relationship between owners associations and public authorities.