Condominium registration

For us, a condominium is analogous to a condominium association (an association of co-owners of an apartment building, from the Latin son - "singing", dominium - "possession") - a form of real estate ownership (on the right of joint joint ownership), in which a person owns not only residential premises, but also a certain share of non-residential premises - in order to improve the overall maintenance of the building and to optimize the use of residents' payments for the intended purpose of its maintenance.

It is clear that in light of recent changes in the payment for services in our housing and utilities sector, the issue of establishing such associations is of particular importance, as every resident of the building wants to be sure that they will receive high-quality, clearly defined services at their own expense and will be involved in controlling their distribution. The history of condominiums dates back to Ancient Rome, as evidenced by the vast majority of legal terms in general, and therefore, if it has stood the test of time, it has the right to exist today in an updated form adapted to the realities of Ukraine.Indeed, condominiums existed in the pre-revolutionary Russian Empire and during the NEP period, and now exist in England, France, and the United States.

The legal basis for the creation of condominiums in our country was laid down by the adoption in July 1992 of the The Law of Ukraine "On Privatization of the State Housing Stock", which marked the beginning of a fundamental change in public consciousness regarding private ownership of housing. Article 10 of Section II states that "owners of apartments in an apartment building are co-owners of auxiliary premises, technical equipment and elements of external improvement," and Section III of the Law provided for the right of apartment owners to create "unions and associations of owners of individual apartments and buildings for the operation and maintenance of the building." In the more than 20 years that have passed since then, there have been almost no special resolutions of the Cabinet of Ministers on this issue every year.

Many people can attest from their own experience that such associations have de facto existed for a very long time, but from a legal point of view, a condominium acquires the rights of a legal entity only from the moment of its state registration.

Advantages for residents of the building in case of creation of condominiums:

• the ability to use common areas in the building for their own needs;
• to create their own management structure to solve all the problems of building maintenance - the organizational nuances need to be thoroughly spelled out in the charter;
• improve the physical condition of the building and living conditions;
• control the quality of repair work;
• reduce the cost of utilities; and materially influence violators of general agreements.

Local authorities, in their turn, are interested in: reducing the amount of expenses from the local budget for the maintenance of buildings; relief from problems with the calculation and collection of utility bills; obtaining an improved condition of the housing stock in general; and relieving themselves of a significant part of the responsibility for making decisions on the maintenance and use of buildings.

A condominium can be created in an apartment building, but only among those tenants who have privatized or purchased an apartment, as well as the owner of the building and non-residential premises.

In practice, there are sometimes problems with the actual process of registering a condominium due to the incomplete stability of this form of association in our society. Our specialists will provide you with detailed advice and prepare a package of necessary documents.

Stages of condominium registration:

• creation of an initiative group of at least three apartment owners, drafting a protocol on the decision to establish a condominium;
• preparation and holding of the constituent assembly of the condominium (all apartment owners must be notified at least 14 days in advance). Quorum - if 50% + 1 owner is present, if during the first general meeting the number of participants was not sufficient, the general meeting is postponed and the required number of participants is reduced to 30% + 1 participant;
• the result of the general meeting of condominiums - minutes and charter (Order of the State Committee for Housing and Communal Services of Ukraine No. 141 dated 27.08.2003 approved the Model Charter of an Association of Condominium Owners and the Model Agreement of Relations between Owners of Residential and Non-residential Premises and the Manager, which can be used, if necessary, adding individual features - we will develop a charter for your condominium under the conditions provided).

Required documents:

• registration card in a certain form;
• minutes of the general meeting of participants on the establishment of condominiums;
• 2 copies of the original and 5 certified copies of the charter;
• receipt of payment of the registration fee for the state registration of a legal entity;
• a power of attorney for a representative.

Registration of a condominium with the tax authorities involves registration of a taxpayer as a legal entity with the assignment of a USREOU code and, after receiving the certificate mentioned above, granting a non-profit status with entry in the Register of Non-Profit Institutions and Organizations. To do this, the condominium must submit a registration application to the state tax authority at its location. We understand how important this status is in terms of allocating funds for the maintenance of the building and territory, because a condominium is a non-profit organization and is not aimed at making a profit, but only at providing the best quality services to residents.

Upon receipt of all the documents, we will produce a seal for your condominium by ordering it from a suitable company (no permission from the Ministry of Internal Affairs is required) and open a bank account, for which you will need to provide a duplicate copy of your constituent documents.

As a result of registration, you will receive

• the charter of the condominium;
• an extract from the Unified State Register;
• minutes of the general meeting;
• certificate from the Department of Statistics;
• a decision on assignment of the non-profitability status in the form No. 1-RN;
• a document confirming the registration of a condominium with the State Tax Service in the form No. 1-OPP;
• a seal.

If you have created a condominium, the residents of your house are guaranteed to receive the adjacent territory in ownership or lease, which will legally save you from troubles in case of unauthorized construction on this territory, which is not uncommon. In addition, the new structure - a condominium - will be able to raise funds from renting basements and attics, parking lots in the yard, providing telephone, television and Internet services, etc., and independently choose decent technical staff and security guards.

You can never please everyone, so we advise you to

• First, prepare an individualized charter;
• secondly, to conclude an agreement with each apartment owner to protect yourself from possible disputes over the management of the condominium and the distribution of financial income.

Comments