Appealing the joint representative, the general meeting of the condominium and the resolution of the condominium in a nutshell

In the first part of our condominium law series, we clarify basic concepts. Who can be a joint representative and what is his role? What is an audit committee? What are the remedies available against a condominium decision? Stay with us and learn the basics of condominium law.

Condominium legal bases

A significant part of the Hungarian population lives in condominiums, yet we know very little about their operation, the rights and obligations of the residents.

1. Why start a condominium? The condominium consists of apartments with a private entrance and separate meters, each with its own topographical number. At the same time, there are a number of issues that affect all residents, such as roof insulation, garbage collection, cleaning and I could go on and on.
2. How can we run a condominium with my neighbors? The main body of the condominium is the General Assembly, which must be convened at least once a year to approve the annual budget, the previous year’s report together with the other residents, vote on next year’s common costs or decide on any issues that arise. Voting is not done in equal proportions per person, so not all residents are worth the same vote, but you can vote in proportion to your share of ownership – in practice, this means that the bigger your apartment, the stronger your vote. Many people don’t know, but you can also represent your neighbors in the assembly if you get proper authorization from them to do so. If you need to decide on an important issue and you are visiting residents who are not really used to expiring at the general meeting, you can collect any number of credentials and so your voting power at the general meeting will be very respectable.
3. Who can be a joint representative and what is his role? No one can be a joint representative unless he is a co-owner. In this case, only a person may be elected as a joint representative who has completed the appropriate training and is not subject to any legal grounds for exclusion (eg criminal record). The task of the joint representative is to manage the condominium on a daily basis and thus, of course, to implement the resolutions adopted at the general meeting. The common representative is also elected by the general meeting. If you want to elect a new joint representative during the year, you will need to convene an extraordinary general meeting.
4. How is a condominium general meeting convened? The general meeting of the condominium is convened by the common representative by invitation to the co-owners (or their proxies). The invitation must be at least 8 days before the date of the general meeting. A general meeting must be held on the subject of the previous year’s accounts and the budget for the current year by 31 May at the latest.
5. Can the shareholders convene a general meeting? If at least 10% of the ownership requires the convening of the general meeting of the condominium, the agenda shall be proposed, the reason for the convening shall be indicated and the proposed resolutions shall be given in advance. It is clear, therefore, that it is not the number of residents or owners that determines the extent of the basis for the convocation, but the proportion of ownership that matters. The request for convening shall be sent to the common representative, who shall convene the general meeting within 30 days of receipt. If the general meeting is not convened by the joint representative or the chair of the management committee within 30 days of receipt of the request, the audit committee, the co-owners requesting it or any co-owner authorized by them in writing shall be entitled to do so within 15 days of the thirtieth day. to convene.
6. What happens if too few come to the general meeting? If at least half of the residents, more precisely 50% of the shares, do not appear at the general meeting, either in person or by proxy, a general meeting must be held half an hour later. This can be done even on the day of the original general meeting, unless the condominium SZMSZ provides otherwise. At the repeated general meeting, there is no longer a minimum number of votes, as a resolution can be voted on or rejected by a majority of the ownership represented by those present.
7. What is an audit committee? The formation of an audit committee is mandatory for condominiums with at least 25 apartments. The members of the audit committee are from among you, the residents, and their job is to audit the common representative from an accounting point of view. Unfortunately, not all condominiums are inhabited by an accountant, so in practice this form of control is not very effective.
8. What should I do if the majority in the general meeting adopts a resolution that is unacceptable to me or that I am unable to comply with? If the decision of the general meeting violates the legitimate interests of the minority, ie those who vote no, you can go to court within 60 days. Now you’re sure to think that if the common cost has been raised a lot or a separate payment has just been made for some kind of renovation, you can challenge it in court. Unfortunately, the situation is not so simple, because the case law generally does not accept such decisions by the majority as a legitimate violation of the minority. A useful tip, however, is that you can also allege a procedural violation in court, and it is often not difficult to find such errors in a minutes of a general meeting. If you manage to invalidate the aggrieved general meeting resolution in this way, the proportion and opinion of those present at the new general meeting will be different, and in the meantime you can prepare yourself: you can convince your neighbors of your position or collect credentials from more passive residents. So you can gain some time, and if you’re active enough, there may be a different outcome at the new assembly.
9. Is this the only remedy? No, in addition to going to court, you can also turn to a local government notary for legal review. If the resolution of the general meeting does not comply with the articles of association or the rules of organization and operation, the notary will take action, or he may himself bring an action in court.

If you are more interested in the subject, you may want to read our article on replacing the joint representative and our article on challenging the resolution of the General Assembly .

The Condominium Act can be accessed by clicking HERE .