The new Law 196/2018 of the Owners ‘Associations appeared in the Monitorul Oficial, with several aspects being modified, such as the setting up, organization and operation of owners’ associations, the administration, maintenance and use of buildings or groups of buildings in condominiums.

The law applies to owners, tenants, owners’ associations and tenant associations in condominiums, and, in theory, aims at a better structure of the management of the owners’ associations, as well as clarifying the attributions of each.

According to the new law, the president of the owners’ association and the members of the executive committee may be remunerated on the basis of a mandate contract, according to the decision of the general meeting of the owners, recorded in the minutes.

For failure to perform their duties or for overcoming the legal and statutory duties, the president of the association, the members of the executive committee, respectively the members of the censor commission or, as the case may be, the censor shall be liable personally or jointly for damages and damages to the owners or third parties, as the case may be.

Working capital

One of the changes brought by the new law is the introduction of the obligation to raise the working capital in order to secure the sums needed for current payments. The owners ‘association has to determine the amount and share of the owners’ participation in the establishment of the working capital.

The working capital will be set so that it can cover the current monthly expenses of the condominium. 

Another provision is the obligation of the owners’ associations to take measures for the consolidation and modernization of the condominium.

The law provides that the association has to invest in modernization of equipment, installations and related equipment, installation of meters for the individualization of consumptions at the level of individual property, thermal rehabilitation in order to increase the energy performance, as well as structural and architectural rehabilitation of the condominium tire to increase its architectural-environmental quality according to the legal provisions, while preserving the harmonious and unitary appearance of the entire condominium, regardless of the nature of the interventions. 

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