How to Establish and Register a Homeowners’ Association?

A homeowners' association is a legal form of organization designed to represent the common interests of property owners within a condominium. Its role is to manage, maintain, rehabilitate, and modernize the common property while ensuring that the rights and obligations of each property owner are respected.

1. Conditions for Establishing a Homeowners’ Association

To establish a homeowners' association, written consent from at least half plus one of the total number of property owners in the condominium is required. In buildings with multiple sections or staircases, separate associations may be established, provided that the common property is clearly delineated and there are separate utility connections.

2. Steps for Establishing the Homeowners' Association

A. Organizing the Initial Meeting

• Before the actual establishment, the property owners meet to decide on the formation of the association.
• A person or legal entity is appointed to draft the association’s agreement and statute.
• A deadline for completing the documents and the date for the establishment meeting are set.
• The resolutions are recorded in a minutes document signed by those present.

B. Calling the Founding Meeting

• Property owners are invited at least 10 days before the meeting, through a notice posted on the bulletin board and a calling list, which must be signed by at least 50% plus one of the total number of owners.

C. Adopting the Statute

• During the meeting, the association’s statute is approved. It must include details about the name, registered office, purpose, income and expense structure, members' rights and obligations, the organizational structure, expense distribution, and conditions for dissolution.
• The possibility of providing a proper administration space for storing association documents is also established.

D. Registering the Association at the Court

• To obtain legal personality, an application must be submitted to the competent court, along with:

1. The association’s statute;
2. The association agreement, including property, owner information, and shareholding;
3. The minutes of the founding meeting.

Once registered, the homeowners’ association becomes a legal entity with rights and obligations towards third parties regarding the management of the condominium.

Conclusion

Establishing a homeowners’ association is a crucial process for the effective management of a condominium. To avoid future issues, it is essential for property owners to follow the legal procedures and consult a real estate law specialist if necessary.