Role of homeowners' associations and tenants' meetings in a residential building (Law in Serbia)

According to the Law on Housing and Building Management, in Serbia, a homeowners' association consists of all apartment owners or tenants in a residential building. Like a company, every building has the status of a legal entity and is registered in the Registry of Homeowners' Associations and has a company name, registration number, taxpayer identification number (PIB) and bank account.

Building management - Tenants' аssembly and manager

The mandatory bodies of a homeowners association are the tenants' assembly and the building manager. The management of the building is carried out by the homeowners association through the assembly, while the manager leads and executes the decisions made.

The tenants' assembly includes all the owners of individual parts (apartments), with each owner having one vote when making decisions significant for the organization in the building. One of this body's key duties is the building manager's selection and engagement. The assembly can elect the manager from among the owners of the apartments in the building or hire a professional manager, independent of the homeowners association.

If the tenants' assembly does not elect a representative, the municipality will appoint a compulsory manager. For more information on the new legal changes and the transition from individual to professional building management, read our previous blog.

The tenants' assembly determines the monthly fee that residents pay for maintenance and other necessary expenses. All decisions about the organization of maintenance tasks, undertaking works on common areas, and the use of common parts of the building fall under the responsibilities of the tenants' assembly.

Rights and obligations of residents: Who owns common areas of the building?

Serbian Law on Housing and Building Maintenance states that one apartment can be used on two legal grounds: ownership and lease. Therefore, all individuals who have a legal basis for using a particular part of the building (apartment or commercial space) are considered members of the homeowners association, which entails certain rights and obligations.

Residents can perform works and adaptations in their individual parts in accordance with the law. They also have the right to make repairs and other works on common parts of the building and use the common parts in accordance with their purpose. Owners of individual parts can initiate proceedings before the competent court against decisions of the tenants' assembly that are made contrary to the Law on Housing and Building Maintenance. They also have the right of first refusal on common parts of the building in case of annexation, conversion, or extension. Additionally, they can file a request for an overview of the current state of the homeowners association's account.

Owners' obligations include not interfering with the functioning of other parts of the building by using their individual part, maintaining their part so as not to disturb the homeowners association, and maintaining the common part of the building that is part of their individual part. Owners are obliged to participate in the costs of managing and maintaining the building and allow passage through their individual part for necessary repairs in case of building maintenance. Regular participation in the work and decision-making of the tenants' assembly, adherence to established rules and the prescribed house order, and informing the manager in case of inability to attend the assembly meeting are also their obligations.

BUILDING MANAGER

As mentioned, the manager is appointed by the tenants' assembly. The manager is registered in the Register of Homeowners Associations and has legally prescribed duties. These include recording individual, common, and independent parts of the building; keeping records of the owners of individual parts and those renting them. Based on the decision of the tenants' assembly, the manager disposes of the homeowners association's account funds, organizes emergency and regular interventions on common parts and the land included in the building's premises.

PROFESSIONAL BUILDING MANAGER

The tenants' assembly can decide at any time to hire a professional manager for management tasks. The professional manager performs the duties of the building manager and other legally prescribed tasks, such as receiving reports of malfunctions or other problems (non-compliance with house rules, noise, and other harmful effects in the building) every day of the week from 00-24 hours and informing the competent authorities about the problem, requesting appropriate measures from the competent authority, and so on. The professional manager is entitled to a fee determined by the contract on the assignment of professional management tasks.

Therefore, every building has the status of a homeowners association, has an assembly, and it depends on its members whether they will have a manager from among their residents or a professional manager.

Finally, no matter how burdensome these obligations may seem and something you do not want to spend your time on, you will surely agree that the building you live in should be a tolerable and pleasant place to live. Therefore, do not ignore your homeowners association, of which you are a part not only by law but also by simple logic because you live within it.

You can consult with a real estate agent on this and other topics. City Expert real estate agency has a professional legal team, representatives, and licensed agents who take care of all clients and help them successfully and quickly sell, rent, or buy an apartment, house, or commercial space.