The new Civil Code entered into force almost three years ago. This should be taken into account especially by older owners’ associations. They have had just three years to bring their statutes into line with the new rules of condominium ownership.
The new Civil Code entered into force almost three years ago. This should be taken into account especially by older owners’ associations. They have had just three years to bring their statutes into line with the new rules of condominium ownership.
What happens if the deadline is not met? Is it just administrative bullying or is it also an opportunity to improve the internal workings of the community?
The mandatory elements of the statutes have been considerably expanded compared to the previous situation. Thus, virtually all HOAs must undergo a revision of their statutes.
It is important, for example, to ensure that the name is in the correct form (it must read “community of owners”). The headquarters of the HOA must be in the building under management. It is necessary to mention the rules for the management of the house and land and the use of common parts, the rules for the creation of the community budget, the contributions of unit owners to the management of the house and the payment of service charges and the method of determining their amount.
The organs of the HOA have also been changed and the HOA must choose whether it wants a single chairman or a multi-member committee. Nothing in between is permissible.
However, changing the statutes is not just a necessary evil. It is also an opportunity to clarify or make some things easier. For example, when voting at a meeting of owners, under the bylaws, a supermajority of the votes present is no longer sufficient, and the meeting is qualified to act in the presence of unit owners who have a majority of all votes. Furthermore, it is also possible to introduce so-called “per rollam” voting, i.e. outside the assembly. This is in fact a voting by means of a circular where all the members, in the comfort of their homes, add their signature in turn.
We will review your HOA or housing cooperative bylaws or we will write them up for you from scratch. We will always ensure that they comply with current legislation. Our bylaws are always tailored to the needs of the residents of the building. We can also set up your HOA or housing association on a turnkey basis. We will arrange everything quickly, flawlessly and at pre-determined prices. You can pay only after the service has been provided.
Previously, the SVJ could use the model statutes issued by the government regulation when drafting the statutes. However, the new legislation no longer contains a model solution. It is therefore advisable to consult a specialist who specialises in the regulation of the internal life of the SVJ.
SVJs must adapt their statutes to the new legislation within 3 years of the new Civil Code coming into force, i.e. by the end of 2016. Within this period, the entry on the change of the statutes must be delivered to the regional court or the municipal court in Prague, which keeps the commercial register.
According to the latest case law, there is no need for a notary to prepare the registration. This saves a lot of resources and organizational effort. See our blog on this below.
If the deadline is not met by the end of 2016, this is no tragedy. However, the Registry Court will invite the slow SVJ to adapt and set an additional reasonable period of time in the notice. If this time limit expires in vain, the court may repeatedly impose a fine of tens of thousands of crowns on the owners’ association. However, the sanction of dissolution of the HOA is probably not an option.
Familiarize yourself with our offer and have the statutes for your HOA prepared or reviewed.
Did you know that you do not need a notary to change the statutes of some HOA’s and everything can be done on our website? Find out more in our next blog.
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We will review your HOA or housing cooperative bylaws or we will write them up for you from scratch. We will always ensure that they comply with current legislation. Our bylaws are always tailored to the needs of the residents of the building. We can also set up your HOA or housing association on a turnkey basis. We will arrange everything quickly, flawlessly and at pre-determined prices. You can pay only after the service has been provided.
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