Real Estate Owners Associations under the new Law
Law no. 196/2018 regarding the establishment, organisation and operating of owners associations and the administration of condominiums, was advertised in the Official Gazette of Romania under no. 660 on 30 July 2018.
The new law came into force on 28 September 2018, repealing the previous applicable Law no. 230/2007.
The following points are worthy of mention:
- 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 restoration of condominiums with several entrances/segments shall be done unilaterally and not separately per entrance/segment.
- Administrators of condominiums will need to be professionally qualified and hold a related certificate.
- Provisions are set out regarding the clarification of matters regarding usage, modification and maintenance of the apartments.
- The owner of an apartment who wants to change its designation from, for instance residential to office, will be required, in addition to obtaining express approval from his/her closest neighbours, to sign an agreement with said neighbours disclosing the exact activity that will be carried out in the space, as well as the number of people who will work there.
- A majority of 2/3 of the members of the owners association, as well as a duly obtained building permit, will be required for any attachment made to the building’s façade for advertisement means.
- Provisions are set out for the clarification of, and an efficient approach to, the relationship between owners associations and public authorities.