What a condominium can do with an indebted property - 2 ways to get into a long-term debt


What to do when one of the members of the housing community does not pay and makes life difficult for other residents of the building? If he does not react to reminders, police interventions and other out-of-court measures, the housing association may apply two solutions: compulsory auction of the apartment of a long-term debtor or apply for a final payment order against the debtor. Read how these procedures differ.

Auction of the premises of a long-term debtor - how does a compulsory real estate auction work?

The housing association may claim receivables pursuant to Art. 16 of the Act on Ownership of Premises:
"If the owner of the premises is in arrears with the payment of fees due from him for a long time or grossly or persistently violates the applicable domestic order, or by his inappropriate behavior makes the use of other premises or common property inconvenient, the housing community may, in a process, demand the sale of the premises by auction. on the basis of the provisions of the Code of Civil Procedure on foreclosure of real estate ”.
Moreover, if an apartment is sold by a compulsory real estate auction by a housing association, the owner of the apartment is not entitled to a replacement apartment. This means that the community will not have to look for a social housing for its debtor.
3 conditions for a compulsory auction of an apartment by a housing association
Bringing to a compulsory auction of a long-term debtor's apartment by a housing association pursuant to Art. 16 of the Act on Ownership of Premises, requires the fulfillment of 3 conditions:
1. The owner of the premises (member of the community) must have long arrears in paying fees to the community. However, it should be remembered that in the light of the provisions, "duration of arrears" is a category that requires separate analysis. However, it should be remembered that the limitation period for rent claims is 3 years.
Pursuant to the amendment to the provisions of the Civil Code on July 9, 2018, the end of the period of limitation of a periodic claim falls on the last day of the calendar year, e.g. unpaid apartment fees for August 2018 will expire on December 31, 2021. thinks about the forced auction of a long-term debtor's apartment when he does not pay for the premises for six months.
2. A meeting of the housing community must be convened in order to pass a resolution on bringing the debtor's case to court and granting the management board of the community a power of attorney to bring an action pursuant to Art. 22 par. 3 point in the act on ownership of premises.
3. The board of the community must, on behalf of the entire community, file a claim with the court ordering the sale of the debtor's apartment.
A legally valid order for payment against the debtor - recovery of the amount due by the housing association
When the owner of the premises does not settle the amounts due to the housing community on an ongoing basis, it may claim in the writ proceedings pursuant to art. 15 of the Act on Ownership of Premises. After obtaining a legally binding order for payment against the debtor, the community may apply to the court for an enforcement clause for the order and refer the case to the bailiff by submitting an application for enforcement against the debtor's real estate. This procedure does not require a separate resolution of the community.
Both the compulsory auction of the real estate of a long-term debtor and a legally binding payment order against the debtor with an enforcement clause apply only to the owners of the premises. The money from the sale of real estate is allocated to the costs incurred by the cooperative, debt repayment, and what will go to the debtor.