Condominium requirements

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When a property is divided in fractional units it is as you well know constituted in horizontal property. If all fractional units resulting from the horizontal property title belong to the same owner, there is no condominium but if, at the same time, each fractional unit belongs to a different owner, we have in fact a condominium. The horizontal property title is the very basis of the condominium and each owner is a “condómino”.

The condominium itself is already formed, however, the various legal formalities that the condominium should respect have not, apparently, been complied with in the present situation.

According to the Civil Code – artº 1435º A – in the lack of a nominated Administrator the owner with the higher permilia has the obligation of acting as provisional administrator with all the competences related to the said office.

I presume that the builder says it is not necessary as there are only three fractional units and the Civil Code refers in article 1429º-A that the Condominium Regulation is only obligatory if you have more then 4 owners. But this is only true for the Rules of Condominium not for the actual condominium itself.

So, in my opinion it is correct that they should comply with all the necessary formalities of a condominium even if there are only three owners, such as:

  • Obtain the tax number for the condominium
  • Nominate or elect an administrator,
  • Submit and approved annual accounts on na AGM
  • Have na updated book of minutes
  • Establish in the AGM the formo f payment of the expenses by the fractional units and based in which criteria;
  • Open and account in the name of the condominium for the condominium fees and the payment of common expenses;
  • Create and deposit the Common Reserve Fund;
  • etc.

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