Sell ​​the house: new law forces you to assume condominium debts

Living in a house in a condominium is not always easy – there are rules to follow and various expenses to pay. And now there is a new law that changes the horizontal property regime. Anyone who wants to sell the house must first ask the condominium manager for a statement containing all the condominium charges and any debts to be paid. And this is really a mandatory document at the time of writing. But there are exceptions.

At stake is a PSD bill, presented in March, which changes the horizontal property regime that has existed for more than 20 years. However, the document was sent to the committee without a vote and the replacement text prepared by the Committee on Economy, Innovation, Public Works and Housing was approved last Friday, November 19, 2021.

It is a diploma that proposes to “facilitate the management of condominiums, assign greater responsibility to the administration of condominiums and facilitate the lives of people who live in condominiums”, summarized Afonso Oliveira, the vice president of the social-democratic bench when submitted the document at the end of March.

But what fundamental changes does this document bring? First of all, it obliges a joint owner who sells his home to inform the condominium administration by registered mail within a maximum period of 15 days before the transaction. And this will make the owner “not disappear completely, as sometimes happens today”, said Afonso Oliveira at the time.

If there is no communication, the alienating joint-owner will be responsible for the value of the expenses inherent in the identification of the new owner and for the burdens with late payment of the condominium expenses of the fraction that are due after the transaction, the document says.

On this point, the final text on responsibilities for costs of the condominium (Article 1424-A) is clear: "The owner, for the purposes of entering into a contract for the alienation of the fraction of which he is the owner, must request a written declaration from the administrator which includes the amount of all condominium charges in force, in relation to the fraction, specifying its nature, respective amounts and payment terms, as well as, if applicable, existing debts, their nature, amounts, dates of incorporation and expiration”.

This declaration must be issued by the administrator within a maximum period of 10 days and even constitutes a “mandatory instructional document of the deed or authenticated private document of alienation of the fraction in question”, the document also states.

Thus, the new bill ensures that someone assumes the condominium's debts. In the foreground, it will be the seller to assume the responsibilities for their debts. But the buyer himself can also be responsible for them. The document clarifies that "responsibility for existing debts is assessed depending on the moment when it should have been settled, unless the purchaser expressly declares (in the deed or authenticated private document that entitles the sale of the fraction) that it waives the declaration of the administrator, consequently accepting responsibility for any debt owed by the seller to the condominium".

After the deal is closed, the text is clear stating that "the charges with the condominium, regardless of their nature, that fall due after the transfer of the fraction, are the responsibility of the new owner".

Source: Idealist