Owners' association: how it is established and what its role is

The first meeting

Îbefore the general assembly meeting, the owners of buildings with apartments must meet to decide on the establishment of an owners' association. If there is already an association of tenants, the owners can decide to transform it into an association of owners.

The person, natural or legal, responsible for the realization of the association agreement and the state, regarding the term of their conclusion, is also decided now. Also, the date of the convening of the constituent assembly is set. The decision is recorded by means of a protocol that must be signed by all those involved.

Owners must be notified of the general assembly meeting through a poster put up at least ten days before it takes place. The poster must be placed in a public place and easily visible.

Establishment decision

The decision to establish an association of owners is established by the written consent of at least half plus one of the total number of owners. The owners include both people who own a apartment, câ ;t and those that own other spaces, which are not used as a home.

This agreement must be registered through a nominal table, which will be attached to the association agreement. The table must necessarily contain the following data:

• Full name of owner;
• Address;
• CNP, series and number of the identity document;
• Name of ownership title;
• The date the decision was made;
• Signature.

What must be mentioned in the general assembly

It should not be forgotten that, during the general constituent assembly, certain relevant information will be presented, such as:

• What name, legal form, duration of operation will the owners' association have, as well as the establishment of its headquarters;
• Statement of the purpose and object of activity for the association;
• The financial resources of the association, as well as the structure of income and expenses;
• Members of the association, their rights and obligations;
• Presentation of the organizational structure, management of the association, as well as the mode of operation;
• Distribution of expenses incurred by the owners association;
• The context in which the association could be dissolved;
• Options for resolving disputes, penalties, emergency cases in which access to the space owned by you is allowed ;
• The creation, if needed, of an administration space created specifically for this purpose, where they will collect the money, keep the documents, etc.

The agreement for the establishment of the owners' association must be registered through a minutes, in two original copies. All consenters must sign both copies.

Register

The minutes of the general meeting, the association agreement and the application to acquire the legal entity status must be submitted and registered with the local financial body that has control the building.

The Association Agreement must include:

• Address and individualization of the individual property, according to the property deed;
• Full name of owners;
• Description of the property (description of the building, its structure, how many floors it has, how many apartments there are and the number of rooms of them, if they are spaces that are not used as a home, as well as the surface of the land which belongs to the building);Listing and describing the parts that are part of the common property;
• The undivided share belonging to the owners, in part, from the common part. >

The owners' association will receive the title of legal personality based on the signature of the judge-delegate appointed to the local financial body.

Îin case you were not present at the general meeting and wish to be part of the owners' association, you only need to fill out a written application. No other documents or formalities are required for approval.

What role does the homeowners association play?

From a legal point of view, the owners' association falls under the category of non-governmental organizations, recognized by the Law on Owners' Associations - officially, law 196 of 2018.< /span>

The owners' association has the role of representing the interests of the people in the housing block in which it was created. These include the rights, but also the obligations of individuals, as well as the way in which the common space will be administered. Legally, the housing block is known as a condominium.

What are the benefits of a homeowner's association?

Lack of an association to represent the rights of owners in a real estate makes organization difficult. An association of owners is recognized as a legal entity and enjoys legal rights.

This includes a number of advantages, such as:

• Legal power to organize activities that will generate revenue (eg tax collection);
• Attractive financing can be obtained to rehabilitate, consolidate or modernize the building, with the interest being subsidized;
• There is the possibility of applying social aid programs in the case of tenants who face difficulties in pay debts to the state;
• Exemption from taxes on rental income in the case of common spaces;
• The tax stamp no longer has to be paid in the case of court action against public service providers or restitution owners ;
• Opening bank accounts in the name of the owners association;
• Contracts for the provision of public services can be negotiated directly.

The owners association is an NGO that represents the rights and obligations of property owners in a condominium. Therefore, its establishment must be organized as soon as possible, if it does not already exist.