MANAGEMENT COMMITTEES OF
Co-Owned Buildings
We support Management Committees of co-owned Buildings.
We understand the complexities of co-ownership, and regulatory compliance, whether establishing a new Management Committee or managing an existing, we offer clear, reliable legal support across every stage, providing practical legal solutions that help the co-owned Building run smoothly, and resolve conflicts before escalate, while protecting the interests of Owners and Residents.
Services
- Committee Formation & Governance Advice.
Helping set up and structure committees in compliance with relevant legislation, including the drafting of relevant documentation, such as minutes and representation forms.
- Constitution & Rules Drafting.
Drafting or reviewing Management rules that align with statutory requirements and the co-owner’s majority goals.
- Owners or Residents Compliance with the Management Committee’s Rules.
Taking the necessary steps, including official correspondence and or even court proceeding- promoting enforcement of the provisions of the Regulations.
- Official Land Registry Search.
Identifying the Properties Owners, either registered or by virtue of a deposited Sales or Assignment Agreement.
- Calculation of each Unit Communal Expenses as per the Law.
- Annual General Meeting, Extraordinary General Meeting and Meeting Guidance.
Assisting with legal requirements for meetings, voting procedures, resolutions, and record-keeping (minutes) obligations.
- Financial Oversight & Levy Collection.
Guiding on lawful budgeting, levies, debt recovery, and enforcement of payment obligations, including payment of communal expenses.
- Communal Areas of the co- owned Building.
Consulting on rights and responsibilities related to the communal areas, about renovations, alterations, building maintenance or upgrades.
- Legal Clarity & Risk Reduction.
Helping to prevent costly mistakes, non-compliance, or internal disputes. Clear legal advice reduces liability for Management Committee members.
Benefits:
• Legal Compliance
The Management Committee ensures the building operates in accordance with local property laws, safety regulations, and insurance requirements.
• Representation of Owners
The Management Committee represents their collective interests in dealings with authorities, service providers, and legal matters and acts as the official voice of all co-owners.
• Control Over Services and Contractors
The Management Committee selects and oversees cleaning, security, landscaping, and maintenance services, ensuring quality and cost-effectiveness.
• Democratic Decision-Making
Through Annual General Meetings, owners participate in key decisions, exercise their voting rights, ensuring that management is accountable and transparent.
• Conflicts Resolution
The Management Committee assist in preventing and resolving disputes among co-owners through meetings, votes, and established rules.
• Efficient Maintenance and Repairs
The Management Committee ensures regular maintenance of communal areas-e.g. elevators, roof, lighting– and ensures prompt handling of repairs, preventing deterioration and costly damage.
• Preservation of Property Value
Well-managed buildings with organized Management Committee are more attractive to Purchasers and Tenants, increasing the market value of each unit.
• Financial Management
The Management Committee manages the common funds, collects communal expenses, prepares annual budgets, and ensures transparency and accountability in spending.
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FAQ
1. When a building is considered “co-owned Building”?
A Building becomes co-owned when at least two units are registered under different owners. The building must be officially designated as “co-owned Building” in the Land Registry.
2. Is a Management Committee legally required?
Yes. Once a building is declared jointly owned, a Management Committee must be formed to handle the administration of co-owned Building and ensure compliance with the relevant legal and financial obligations.
3. How is the Management Committee elected?
The Management Committee is elected at the annual general meeting (AGM) of the Unit Owners. All Unit Owners are usually entitled to vote, and voting rights are generally proportional to their share in the co-owned Building.
Quorum shall be met in such cases.
4. When is a quorum met?
A quorum is met when the minimum number of Unit Owners or Representatives, as defined in the building’s regulations or relevant law, are present or represented at the meeting, which is as per the law majority (50% +1).
No binding decisions can be made without quorum.
5. What happens if no quorum is met?
If a quorum is not met, the meeting is usually postponed or adjourned. A second meeting may be held usually at the same place and time, the week following, where a lower quorum (or no quorum) shall suffice, depending on the Regulations as to the matter in question at the general meeting.
6. Who can serve on a Management Committee?
Typically, any owner of the co-owned Building registered or by virtue of a deposited sales or assignment agreement, is eligible to serve as a Member of the Management Committee, although under certain circumstances residents or external professionals might be voted or appointed in certain roles. Election usually occurs at an annual general meeting (AGM).
7. Are the Management Committee Members personally liable?
If they act within their legal duties and in good faith, Management Committee Members are not personally liable. However, gross negligence or misuse of funds might lead to personal responsibility.
8. What are the responsibilities of the Management Committee?
The Management Committee is responsible for, managing and maintaining communal areas (stairs, lifts, roofs, etc.), setting and collecting communal charges (shared expenses), insuring the building against fire and other risks, enforcing the regulations of the co-owned Building and keeping financial and administrative records.
9. Which are the “communal areas” of the co-owned Building?
Communal areas include shared areas like hallways, gardens, lifts, roofs, or pools.
10. What happens if some owners refuse to pay their communal expenses?
The Management Committee has the legal right to pursue unpaid amounts through court. Communal expenses are considered a legal debt, and owners who do not pay the communal expenses corresponding to their unit can face legal action, including interest and enforcement proceedings costs.
11. What are “Management Committee’s Regulations”?
They are the formal rules that govern how owners and residents must behave and how the co-owned Buildings shall be managed. They cover things like noise, pets, parking, renovations, and use of communal areas. These rules must comply with applicable laws and often need to be registered with the Land Registry.
12. What if Owners or Residents don’t follow the Management Committee’s Regulations?
The Management Committee can issue notices-warnings, or take legal steps to enforce the content of the Regulations. However, enforcement must follow a fair and legal process.
A Lawyer can assist applying correctly for remedies at the District Court.
13. How often shall General Meetings be held?
An Annual General Meeting (AGM) shall at least be held once every year.
Extraordinary General Meetings (SGMs) can be called upon request of the 25% of the Unit Owners.
14. Is the Management Committee able to make all decisions on its own?
The Management Committee is usually able to make day-to-day and operational decisions. However, significant decisions—like amending regulations or altering communal areas—often requires owners approval by vote at a general meeting.
*The above constitute general information and does not substitute professional legal advice or consultation, which shall be sought prior of taking any action.