Responsibility for Extensive Maintenance in a Condominium: Obligations Upon Apartment Sale

When significant maintenance works are scheduled in a condominium, a crucial question arises: who is responsible for covering these costs in case of apartment sale? The resolution to this query hinges on the timing of the approval of the maintenance works - whether it occurred before or after the property transaction.

Who covers the expenses if extensive maintenance was sanctioned before the sale?

If substantial maintenance was greenlit during a condo owners' meeting prior to the notarial deed's execution (the sale agreement), then the financial burden falls on the seller by law. Recent judicial rulings dictate that the seller, who was the property owner when the works were approved, must shoulder all related expenses.

A case in Naples in November 2023 upheld this principle. In this instance, the new owner, faced with payment demands from the contractor, contested the issue in court and emerged victorious. The court decreed that the former owner should fund the repairs, as they owned the property at the time the decision to carry out the works was made.

Protocol during Ongoing Maintenance Works

These regulations exclusively pertain to considerable maintenance projects. Regarding ongoing works, the scenario changes. If the ongoing works were approved pre-transaction but completed post-transaction, the new owner bears the expenses since they directly benefit from the results of the maintenance.

Significance of Seller-Buyer Agreements

Throughout the property transaction, the seller must disclose forthcoming maintenance works to the buyer. This allows both parties to determine who will cover the impending costs. For instance, a contract clause can stipulate that the seller agrees to fund all pre-transaction approved expenses.

Course of Action if the Seller Cannot Cover Maintenance Costs

If the previous owner is incapable of financing extensive maintenance, the new owners are not obligated to assume these expenses. In such instances, the property management firm or Homeowners' Association (HOA) must pursue the debt through legal channels from the former owner, potentially leading to asset seizure.

Feasibility of Payment in Installments for Maintenance

In times of financial strain, individuals can request a payment plan for maintenance costs. This request is made through the property management company, which presents the issue at a condo owners' meeting for resolution. This method helps avert debt accumulation and prevents a deterioration of the property's financial standing.

Hence, when selling a property, it is crucial to consider the timing of extensive maintenance approvals and prearrange the cost distribution to forestall conflicts and ambiguities.