With a little exaggeration, if we shouted ourselves on a busier road, “who would replace their common representative?”, Surely not one person would run angrily to us. The coexistence of common representatives and the condominium community always raises interesting questions. Replacing a common representative is often not the result of a simple decision. It’s a bit like a marriage. Many emotional or interest relationships intertwine individual relationships and in many cases are an inability to meet all interests.
Many of us have a story of our own or a narrated one about an angry owner shouting at a common representative about a gang, neighbors not signing anything, or negligent, possibly “stealing” common representatives. Of course, our article is not against common representatives. Just as articles about divorces and divorce lawsuits in general are not anti-marital or anti-marital. This article was inspired by the problems of life and clients, in which we would like to present the possibilities and process of replacing a common representative. This is because there may come a moment in the life of a condominium when someone or someone no longer wants to live with the current common representative and wants to replace him or her. Let’s see what options they have.
Our article has been written with the usual thoroughness, so you can even skip the introductory parts. Those who are only interested in the exact rules for replacing a common representative will safely ignore the first 3 points. We may also be interested in our article on challenging the General Meeting resolution, which you can access by CLICKING HERE .
Replacement of the Joint Representative
1. The funds: In the condominium, the affairs of the community are managed by the common representative. In doing so, you must comply with the applicable laws, in particular the accounting and condominium rules and your agreement with the condominium. The replacement of a common representative can even take place due to a violation of the law, a conflict of interest or a lack of sympathy, since, as in the case of marriage, the road can lead not only inwards but also outwards. Exemption is an option for the general meeting of the condominium, which the general meeting has the option at any time under the Condominium Act.
2. What could lead to the replacement of the Joint Representative? Countless things can lead to a situation where the idea of replacing a common representative is expressed in the minds of one or more co-owners. In this case, it is worth trying to clarify the problematic issues first. Of course, in the case of a criminal offense, serious misconduct or serious pecuniary damage, this step can be dispensed with, but in other cases it is worth reporting the problems to the joint supervisory body and asking it to take appropriate action.
3. Monitoring the activities of the Joint Representative: The Joint Representative is normally audited by an audit committee. The law generally entitles the audit committee to oversee the “administration” of the common representative. As part of this, you can request information and clarify any issues that may be misunderstood or disputed. It is important to emphasize that in the case of a condominium where there is no audit committee, there may be a co – owner or an expert appointed for this purpose (taking into account the SZMSZ) (Article 51 of the Condominium Act). § (5)) to control the common representative.
4. Replacement of the common representative: The common representative can be replaced by a condominium decision. If you want to reach such a decision, you need to do the following:
- Obtaining a sufficient number of grants to convene the general meeting of the condominium initiating the replacement of the common representative: As the replacement falls within the competence of the general meeting, the first step is to convene the general meeting. For this to happen, it is necessary to initiate 1/10 of the co-owners. Consequently, it is not the number of sub-deposits or owners that is decisive, but 10% of the ownership of the entire condominium that the common representative should be replaced. The signature of this 10% shall be collected on a document convening a specific extraordinary general meeting and addressed to the common representative. The document must also include an agenda item or items.
Tip: In all cases, it is advisable to obtain the signature of an owner with more than 10% ownership, as some signatures may be attached to the joint representative.
- Handing over the document to the common representative: It is a good idea to hand over the signed document in person with the common representative. This may later be relevant for the purpose of proof and also for the fact that the joint representative will be required to convene a regular general meeting within 30 days of the date of receipt.
- Convening of the General Meeting: If the Joint Representative fails to comply with the above obligation, the Audit Committee shall be entitled to convene the General Meeting within 15 days of the expiry of the 30-day period. If the audit committee fails to meet the deadline, the co-owners requesting the convening or any co-owner authorized by them in writing may convene a general meeting of the condominium to replace the joint representative.
- Preparing for the general meeting: As it is enough to convene the general meeting with the support of 10% of the ownership share and to replace the common representative, a majority must be obtained from the residents who are not present but support the replacement. In the possession of the proxy, it will be possible to vote in his place and on his behalf.
- The General Assembly: If the relationship is not completely upset, the General Assembly will presumably be chaired by the Joint Representative. However, if the common representative fails to fulfill his obligation or ceases to fulfill his obligation after his replacement, one of the co-owners will in practice chair the general meeting. Care must be taken to ensure that a report is drawn up in this case as well, that there be a secretary of the minutes as well as protocol verifiers. The results of voting shall be recorded in the minutes, taking into account the ownership interests. If possible, make a recording of the general meeting. It is worth voting for the community in advance.
- Publication of the resolution: If a resolution is passed at a general meeting of the condominium, it must be published within 8 days. In practice, this means that it must be posted in a conspicuous place or, if the organizational and operational regulations provide for such an obligation, that the co-owners must be notified in writing.
5. What happens if we replace the common representative but have not yet been re-elected? If the common representative is replaced, of course, he cannot “run away” immediately. In such a case, the joint representative who has already been replaced shall be subject to a temporary obligation by law. As part of this, he will act as a trustee (for a fee, of course) until the election of a new joint representative, but for a maximum of 90 days. The rights of the replaced common representative may also be limited in the condominium decision for the period of the trustee. In some cases, you may want to consider the right to dispose of bank accounts or certain contract options.
6. What happens if a former Member has allegedly committed a criminal offense or caused damage? Of course, and unfortunately, such a case can be encountered. In this case, in addition to the general (or office-required) reporting obligation, the condominium rules also include a reporting obligation for the general meeting. The general meeting has the right to decide whether to initiate a lawsuit for damages and file a criminal complaint. However, you may want to seek the help of an expert lawyer.
You can find the current text of the Condominium Act HERE .