Tenants' Representative

The co-owners draw up the co-ownership agreement in writing

The co-owners draw up the co-ownership agreement in writing, and for it to be valid it must be signed by co-owners whose share in the ownership of the separate parts of the building exceeds 50%, after which its decisions apply to the remaining co-owners in the building. Since co-owners of a building with three or more apartments are legally required to appoint a building manager in addition to a tenants' representative, so that management is as efficient as possible, it is first necessary to establish which tasks are carried out by the manager and which by the tenants' representative, who acts as an intermediary between the co-owners and the manager.

Duties of the Building Manager

Under a management agreement, the co-owners authorise the manager to carry out, in their name and on their behalf, the tasks on which they have made decisions. The manager performs routine management tasks on the basis of a decision of the majority of co-owners, for example by using the funds collected in the common reserve fund to keep the common parts of the building in usable and functional condition, representing the co-owners in matters of building management in proceedings before state bodies, courts or other authorities, and carrying out periodic and annual inspections of the building and drawing up minutes of them. On the other hand, the manager may undertake extraordinary management tasks only with the consent of all co-owners or a court decision replacing it. These include tasks such as repairs, extensions, additional storeys, renovations, sale of the entire building, leasing or renting the building for longer than one year, creating a mortgage on the building and the like. In order to undertake such actions, the manager must cooperate with the co-owners' representative, who conveys to the manager the needs and wishes of the building's residents.

Who can be a tenants' representative?

A tenants' representative is needed because, in buildings with several apartments, it would be impractical for the property manager to talk to and make arrangements with each co-owner individually. The representative is therefore the link between the manager and the residents of the building. To make this cooperation work as well as possible, the representative must hold regular annual co-owners' meetings and inform co-owners about the condition of the building and the maintenance work required. This allows the residents to decide on the work that the manager will carry out on their behalf and at their expense. The tenants' representative must be a co-owner of the building, that is, the owner or co-owner of an apartment.

How is a tenants' representative chosen?

The tenants' representative is chosen exclusively by the co-owners of the building, by a majority of more than half of the co-ownership shares, on the basis of a concluded co-owners' agreement. The co-owners also define the tasks the representative must carry out. It should be noted that, under the same agreement, the co-owners may appoint two or more representatives. If nobody wants to be the representative, the co-owners can even agree to appoint one for a fixed term and replace them on a rotating basis.

What are the duties of a tenants' representative?

The tenants' representative must ensure that the house rules are followed and oversee how the common areas and the land serving the building are used. The representative must also monitor the condition of the building, report defects and, where necessary, organise emergency interventions and repairs in agreement with the property manager. In addition, the representative concludes the loan agreement and the management agreement with the manager, and together they make payments from the common reserve fund account for the maintenance of the common areas. The representative must regularly report to the co-owners on all matters related to management and submit a written report on their work to all co-owners once a year.

A tenants' representative cannot make decisions in place of the co-owners

The representative cannot make decisions in place of the co-owners, nor dispose of the reserve fund at their own discretion, and must compensate for any damage if proven to be at fault. It is important to note that the representative can be dismissed at any time by co-owners who together hold a majority of the co-ownership shares, provided there is a valid reason. For work done on behalf of the building, the representative may receive remuneration as set out in the co-owners' agreement.