The Civil Code, through Article 1130, establishes that the condominium administrator must draw up the annual management report and call the assembly within six months for its approval.
This is a crucial step for the correct management of the condominium, but what happens if the administrator does not fulfill this obligation? How can condominium owners protect themselves in these circumstances?
In this article, we will explore the different actions that condominium owners can take when the administrator fails to file a financial report.
Condominium Owners’ Actions Against the Condominium Administrator
When the condominium administrator does not fulfill its obligationsthe condominium owners have various actions available to protect themselves and ensure correct management of the condominium.
Article 1130
Administrator AttributionsThe administrator, in addition to what is provided for in article 1129 and from the current legal provisions, must:
1) carry out the resolutions of the assembly and convene it annually for the approval of the condominium financial statement of which article 1130-bis and ensure compliance with the regulation condominium;(…)
These actions include:
- Formal warning: A registered letter that puts the administrator in default, obliging him to fulfill his duties within a specific time limit.
- Revocation for just cause: Decided by the assembly with a majority resolution or, in the absence of this, through legal action undertaken by a single condominium owner.
- Failure to pay compensation: If the administrator fails to submit the financial statement, he loses the right to compensation for the management year.
- Appeal to the court: When the assembly does not reach the majority necessary for revocation, each individual condominium owner can ask the judge to remove the defaulting administrator.
Knowing and using these tools allows condominium owners to act effectively and promptly, preventing further inconveniences and ensuring transparency in condominium management.
Let’s now look at them in more detail.
Formal warning to the administrator
When faced with an administrator who has not submitted a financial statement for over a year, the first step to take is a formal warning by registered letter. This act can be carried out by any condominium owner without the need to collect signatures from other residents.
The warning serves to put the administrator in default, forcing him to respect his duties. The letter should clearly specify the failure to comply, set a reasonable deadline for reporting and warn of possible legal consequences in the event of further failure.
This initiative represents a preventive action to avoid further inconvenience and guarantee transparency in condominium management.
Revocation of the administrator for just cause
If the administrator continues not to fulfill his obligations despite the warning, the condominium owners can proceed with the revocation for just cause. This revocation can be decided by the condominium assembly with a resolution adopted by a majority of those present and with at least half of the thousandths.
If the assembly does not reach the necessary majority, a single condominium owner has the right to apply to the court through a lawyer to obtain the dismissal of the administrator.
Revocation for just cause means that the administrator cannot claim compensation for the early termination of his office. However, he must continue to perform his duties until a replacement is appointed to ensure continuity in the management of the condominium.
Failure to pay the administrator’s compensation
Another measure that the condominium owners can adopt concerns the failure to pay the compensation to the inert administrator. According to the jurisprudence, the administrator who does not draw up the financial statement or does not submit it to the vote of the assembly is not entitled to receive compensation for the activity carried out during the year.
The Court of Cassation, with ruling 3892 of 2017, established that the administrator’s compensation is strictly linked to the presentation of the financial statement, which must include a detailed specification of the accounting data of income, expenditure and final balance. This principle was also reaffirmed by the Court of Naples with ruling 7399 of 2021.
This measure, in addition to protecting the condominium owners, encourages the administrator to respect his obligations, ensuring transparent and responsible management of the condominium.
Collection of condominium fees without budget approval
Despite the failure to present the final balance sheet, the administrator still has the right to collect the condominium fees from the individual condominium owners. If the condominium owners do not make the due payments, the administrator can take legal action by requesting a injunction against defaulters.
However, in the absence of an approved budget, the injunction will not be immediately enforceable. This means that the debtor will have 40 days to make payment or file an objection before facing further legal action, such as foreclosure.
This time frame allows the condominium owners to contest any irregularities, offering protection against undue requests.
Legal action for the removal of the administrator
When the assembly fails to reach the majority necessary to revoke the administrator, each individual condominium owner has the possibility of appealing to the court. In this case, through a lawyer, the condominium owner can ask the judge to dismiss the defaulting administrator.
This legal procedure provides additional protection to condominium owners, ensuring that even in the absence of unanimous consent, there is a way to resolve situations of irregular management.
The judge will evaluate the evidence presented, such as the failure to draw up the financial statement and the failure to call the meeting, and may decide to remove the administrator and appoint a commissioner ad acta who will provide temporary management of the condominium until a new administrator is appointed.
Conclusions
In conclusion, the condominium administrator has the obligation to draw up the annual report and convene the meeting for its approval. When these obligations are not respected, condominium owners have various protection tools: from formal warning, to revocation for just cause, to non-payment of compensation, up to legal action for dismissal.
It is essential that condominium owners are informed of their rights and the procedures to follow to ensure transparent and correct management of the condominium.
