What is a condominium, condominium facilities? The Association of Homeowners

Our time is a century of continuous globalization. That is why it is not surprising that in many countries of the world there is a process of uniting people into various organizations and communities. Today, many of us still do not know what a condominium is, for our country this concept is still associated with something far and little studied. However, condominiums are already widespread in many states.

general description

So, what is a condominium? Under this notion is not a single building or building, but the form of ownership of a particular residential complex. Parallel to this, each apartment belongs exclusively to its owner, and such areas as staircases, halls, technical floors, yard areas, are jointly owned by all residents. In this case, the concept can relate not only to one residential building, but to a whole complex of different structures.

History of occurrence

Initially, what a condominium has learned, residents of the UK. This system of ownership and management of real estate exists in Australia, but there it is called Strata Title. Very actively use condominiums in Canada and the United States. If we talk about Russia, then the homeowners' association (HOA) can be considered an absolutely identical analogue of the term we are considering. Condominiums are also widely distributed in the United Arab Emirates, India, South Africa, Singapore, Thailand.

Features

This form of property is characterized by the fact that it lacks the concept of leasing. In addition, the possibility to own property for a limited period of time is excluded. In all condominiums, their property is real estate.

Absolutely all the property that is part of the condominium, is in the possession of the owners of apartments. With regard to solutions for content issues, for example, home territory or other common property, then the owners of apartments decide such nuances at general meetings that are held on a regular basis at a specified time. At these meetings, questions can also be addressed about how management of a multi-apartment building or a complex of houses will take place.

Creation of a condominium in the Russian Federation

This association of tenants is created as follows:

• Preliminary stage. The so-called active group (owners of the house or apartments) collects various documents, prepares the draft charter of the association, communicates with the rest of the owners of the living space, chooses the governing body.
• Collection. The fact that the meeting will be held, all homeowners are notified in advance. And not less than two weeks before the appointed date. At this meeting, the charter of the condominium is drawn up and a vote is taken to select the board.
• Check in. Registration of the newly formed association in state bodies is made without paying any fees and takes place within a month. In the same period, when all the required documentation will be processed and received, the chairman initiates the opening of a settlement account, to which all residents will subsequently pay the payments.

Advantages of condominium

The advantages of such an association are as follows:

• The high degree of responsibility of each owner for keeping in proper form their homes. And all because the condominium provides for several owners of the house, which together contain a total area. In this regard, each owner of the apartment starts to take seriously both his personal and joint property.
• The funds that the condominium transfers as utilities are not subject to any taxes, since this association is not a profitable organization.
• Where low-income citizens live in the condominium, they have the legal right to apply for a subsidy from the state for the subsequent payment of utility services.
• Owners of apartments have the right to independently resolve all issues that affect the objects of the condominium. Also, people dispose of the means that must be used to solve household needs.
• Residents of the condominium themselves control the money spent on conducting, for example, a major overhaul of a building or repairing a roof.
• Owners of housing have the right to independently dispose of their existing apartments and make various transactions with them. In addition, at the general meeting it is quite possible to decide on the use of the common territory of the condominium, which allows the receipt of income in favor of the association.
• Solving various problems in the judicial system is much more effective in the whole condominium than in the person of one person.
• Owners of apartments that have a substantial debt for utilities, by decision of the general meeting can make a labor contribution in favor of the condominium in order not to repay the debt.

An unconditional advantage of such an association can be considered the investment of funds in its property. Most residents of the countries of the Western world use the opportunity to save the accumulated funds by investing them in a condominium because it is convenient, and most importantly - reliably. These investments are fully protected from inflation or other risks. Particular attention is drawn to those objects, the price of which increases with time. A fully justified and proven fact is that the condition of the living space (apartment) itself has very little effect on the formation of the final cost. In this case, the main role is played by the location and cost of servicing the condominium, the total area of the apartment, the age of the residential complex or the house.

Negative moments

The main drawback of the condominium can be considered its registration in state bodies. This is an extremely difficult task, which requires a lot of time and effort. In cases where such joint ownership of property is registered for the first time, the technical passport of this association is drawn up at the expense of budgetary funds.

The second negative quality of the condominium is the maintenance of housing. In connection with the fact that all the burden of repair and maintenance of communication systems falls on the shoulders of the owners of apartments, and payment for all these operations is also carried out from their pocket. The adjacent territory of the association is subject to land tax.

Reserve fund

Finding out what a condominium is, it is worth pointing to the presence in this association of a special reserve fund created for unplanned expenses covering the consequences of various force majeure circumstances (for example, a fire or a sewage breakthrough). This practice takes place in many developed countries. Due to this in the condominium, the costs of repair work are covered from general savings, and the required work is performed only by the contractors inspected. Such a competent management of the apartment building and led to the popularity of condominiums in Europe and America.

Indisputable advantage

Housing in a condominium is much cheaper than in a separate private house. The difference in price between these two properties can reach hundreds of thousands of dollars. In addition, the tax on a private house is more than an apartment in a condominium.

The Russian reality

In the Russian Federation, the condominium law was approved on June 15, 1996. This document stated that the condominium is a set of both residential and non-residential premises, a land plot, communications of a residential multi-apartment building or several single-family houses. However, from March 1, 2005 the concept of condominium in Russian legislation ceased to exist. Modern Housing Code provides an analogue of the described association - a partnership of homeowners, which should be considered in more detail.

Formation of partnership

A partnership is established on the basis of the decision of the apartment owners' meeting, which is held on the basis of Articles 45-18 of the LC of Russia. A partnership is considered created when it is voted for by a majority of votes of all apartment owners. It is important to note that not all owners of housing in an apartment building become members of the HOA automatically. To do this, you must write an appropriate application for joining the association. In addition, at any time a member of the partnership has the right to withdraw from a non-profit organization, and a person who is not a member of the HOA can also join the organization at the right time. Also elected chairman of the HOA.

Voting Features

The legislation of the Russian Federation does not prescribe how the vote count at the HOA meeting should be carried out.

The counting options are as follows:

• The number of votes is in direct proportion to the total area of the premises. Simply put, the larger the area the person owns, the more votes he has at the general meeting.
• One member of the HOA has one vote. Even if the owner owns several rooms, he still will not have any advantages. If there are two apartment owners, then each of them will have the right to vote.
• One room is equated to one vote. In this case, the number of owners and the difference in areas are not taken into account.

Functions of the head of the partnership

The Chairman of the HOA, on the basis of the current legislation, is vested with certain rights and duties. Since the head of the HOA is chosen by the owners of the apartments themselves, they can be removed from their posts if necessary. The term of his powers is limited in time on the basis of the approved charter of the partnership. The main functions of the chairman are:

• Ensuring implementation of those decisions that were taken by the board of HOAs.
• Issuance of instructions and instructions to HOA officials.
• Performing actions on behalf of the partnership without a power of attorney.
• The signing of payment documents and the conclusion of transactions that, according to the charter or law, are not within the competence of the general meeting (board).
• Develop and submit for approval by the HOA meeting the internal rules for staff who are in direct service at home. At the same time, his salary, like the salary of the chairman himself, is approved at the time of the general meeting or board meeting.

Lack of HOA

As practice has shown, many members of the association are extremely reluctant to pay bills. In this case, there are not so many ways to influence a malicious defaulter. Even if you vote and expel the debtor from the HOA, he still remains a resident of the house. Evicting a person on the basis of a court decision is also a big legal problem, and everything else and court costs will be paid directly by the HOA.

Foreign Affairs

If we consider condominiums in Canada, then it should be noted that the price of housing in these associations is getting higher and higher every year. This situation is very beneficial for investors who purchase housing for its subsequent leasing.

As for France, condominiums are mostly concentrated in large cities of the country. In particular, according to experts, in the Paris area of Saint-Germain a two-room apartment located in a condominium will cost about one and a half million euros.

In the United States of America condominiums have developed not only in megacities, but also in small towns. The most interesting thing is that the principle of condominium here is spreading in some states even to private, detached houses.