PROPERTYMGM Ph.D.eng.

CarloZanchetta_UniversityofPadova

Condominium Administration
and Building Management

carlo.zanchetta@unipd.it
PROPERTYMGM Ph.D.eng.CarloZanchetta_UniversityofPadova

PART I: What is a condominium:

definition and regulations
PROPERTYMGM Ph.D.eng.CarloZanchetta_UniversityofPadova

PART I: What is a condominium: definition and

regulations

1. Definition: Community of property and

condominiums
1.1 Community: when property or other right is keeped by more than one person if a
law doesn’t specify differently (public property)

The discipline of property sharing depends on the percentage of possession of that

property

Portion: how much part of a property is possessed privately by someone.

IT IS TIPICALLY EXPRESSED IN THOUSANDTH (X/1000 X‰)
Portions are assumed with the same value if not differently specified
It is assumed that charges and advantages are subdivided in proportion to private
portions (‰)
PROPERTYMGM Ph.D.eng.CarloZanchetta_UniversityofPadova
The thousandth (or tantieme) fraction is the unit of value used to calculate the share
of common areas assigned to each condominium lot

The division in shares is defined by an expert surveyor and is calculated based on a

certain amount of criteria: the rental value of a lot, its area, its orientation, etc.

As an example, a 100 m2 apartment facing directly South on the last floor of a

building with no elevator, would have a bigger share than the studio located in the
same building on the main floor and facing North.

Obligations towards a property:

• not to modify its function
• not to limitate others owners rights

Rights:
• use common property
• increase its quality with private investments
• manage the common property with other owners
• manage rights on common property and eventually lease it to others
proportionally with ‰
PROPERTYMGM Ph.D.eng.CarloZanchetta_UniversityofPadova
Administration of shared property depends on owners will.
It can be ordinary or extra ordinary in relation to the importance of the decisions that
need to be taken regarding the property.
It can be developed by a person who legally represents the community of owners
(condominium administrator)

Ordinary administration is developed if the majority of participants agrees on a

decision

Extra Ordinary administration needs more qualified majorities. It is tipically required

for innovations of the property (redevelopement or modernization)

To support ordinary administration and to manage ordinary oners uses a regulation

can be developed.

If no decision is taken to manage shared property or no majority exists or there is no

execution of willness of owners every owner can ask for the intervention of justice
that can identify a condominium administrator.
PROPERTYMGM Ph.D.eng.CarloZanchetta_UniversityofPadova

1.2: CONDOMINIUM = SHARING PART OF A REAL ESTATE

Most common shared parts of a building are

- The ground on which the building stands
- Building foundations and external walls
- Roofs
- Stairs, entrances, common halls
- Galleries and courtyards
- All the parts of the building that are necessary for shared uses and services
(technical rooms, elevator, MEP systems, drainage, etc.)

Legal aspects of a condominium

Condominium is not a legal subject: it is just a management subject, that acts for
the community of owners in order to secure their interests and the right utilization
of shared properties.

To manage these aspects the condominium gives a mandate to an

administrator
PROPERTYMGM Ph.D.eng.CarloZanchetta_UniversityofPadova

1.2.1. Partial condominium

When in a building there are parts or implants that serve only a limited number of
owners.
The costs of these facilities are in charge only to effective beneficiaries

1.2.2. Super condominium

When a plurality of buildings that are structurally divided share some services and
facilities.
The administration of these facilities is developed by means of a regulation.
PROPERTYMGM Ph.D.eng.CarloZanchetta_UniversityofPadova
2. SHARED PARTS OF A BUILDING - OWNERS RIGHTS ON SHARED PARTS –
INNOVATIONS

2.1. Shared parts

Legal rights that can overpass community of property:

- Act of estabilishment of a condominium

- Purchase contracts of properties;
- testaments;
- adverse possession

2.1.1 Ground and underground

The ground in which the condominium stands is part of the shared property as well
as foundations and external walls.
The owner of an apartment at the ground floor has the same right on the ground
than the owner of any other apartment if not differently specified.
It is not allowed without the permission of all the other owners to augment the
heightness of the groundfloor by excavating the ground.
PROPERTYMGM Ph.D.eng.CarloZanchetta_UniversityofPadova

2.1.2 Load bearing walls – dividing walls – windows

Every owner has portion of the property of the whole external wall an not
only the part that encloses his apartment
Internal walls if not load bearing are of exclusive property of one owner
Windows are part of the exclusive property even if positioned on external
walls
Some rules can be specified for the appearence and maintenance of
windows in condominium rules
The opening of new windows is permitted by law without the consent of the
other residents, unless it is prohibited by special conventions or by
condominium rules, or undermine the dignity, aesthetics or stability of the
building or doesn’t obstacle the exercise of competing rights of other residents.
All changes that can increase the quality of shared parts are legitimate,
without the consent of the other participants, provided that they do not alter the
normal destination of the wall itself.
PROPERTYMGM Ph.D.eng.CarloZanchetta_UniversityofPadova

2.1.3 Roofs - attics - flat roofs

The roof is a common good in all its forms and parts, and can not, even minimally,
to be occupied by a condominium or subject to change destination.
The right of the owner of the last floor of the building to raise the building
requires the payment of an allowance that takes into account the value of the
raised part and the reconstruction of the entire roof level.
The costs of maintenance of the roof belong only to owners covered by the
same roof including the floors below. The roof covering garages outside the
building condominium is subject to common ownership.
2.1.3.1. attic
If there is not a particular title, the attic, for its structural and functional
characteristics, can be attributed to the common areas. The sole owner of an
attic can not turn the attic into residential use and connect it to common
facilities, without the consent of all the other owners. If the regulation puts a
ban on performing any work that could affect the organic structure, stability and
appearance of the property, it must be considered prohibited to change the use of an
attic.
PROPERTYMGM Ph.D.eng.CarloZanchetta_UniversityofPadova

2.1.3.2. flat roof

the flat roof plays a dual purpose: typical coverage of the building below the surface
and accessible surface. When the use of flat roofs or part of it is not common to all
owners, those who have exclusive use are required to contribute to the
spending of repairs or reconstruction of the pavement; the other costs are
borne by all owners of the building or the part of this that the flat roof serves
Also the installation of an independent antenna of considerable size would not be
legitimate, since it determines a permanent change of destination.
2.1.4 doorways, stairs, hallways and passages
Each owner has the right to use the stairwells, in general, or corridors, in particular,
by placing in front of the front door mat, plants or other ornaments; unless such
objects do not make difficult access to stairways. The maintenance of the
stairs is divided among the various apartment owners in relation to the different
levels and diversity of use.
In the main entrance or in the stairwell it can not be built a storage room (also
by resolution of the majority of the condominium) if diminish appreciably the
enjoyment of the property of even one of the owners.
PROPERTYMGM Ph.D.eng.CarloZanchetta_UniversityofPadova

2.1.5 courtyards
Main function of the court is to give air and light to the rooms overlooking the
exclusive property and to allow the free passage to access the same.
The courtyard constitutes a common part also in the case where both surrounded by
buildings structurally autonomous buildings that belong to different owners.
Acting by a majority, the condominium Assembly can predetermine in the
courtyard common areas for parking and may identify the portions of court
that each condominium can use by himself.
It would be prohibited to assign parking for the second car, as this could create
the conditions for the purchase of its property by way of adverse
possession.
The owner of a building or a land linked with a courtyard in common ownership with
other riparian can not use the courtyard to access other real property owned
exclusively, because such use would result in the modification of ideal shares of
the other participants.
Even a permanent occupation of a car park for long periods by a owner is
not allowed, since it prevents the other residents to participate the use of the
common area.
PROPERTYMGM Ph.D.eng.CarloZanchetta_UniversityofPadova

2.2 The rights of the participants on common things

the right of each owner shall be proportionate to the value of the floor or
surface portion that belongs to him.
each owner can use the common property regardless of its ownership share
of the common part.
It would not be legitimate to exclude an owner from the use of a common
part by means of a shareholders' resolution.
The proportional value of each floor or each portion of the floor is fixed
according to the thousandths
the right to invite guests in the swimming pool must be proportionate to the
ownership share.
the law on common things does not free the waiver from the obligation to pay
its contribution in the cost maintenance of this shared property.
There is no law expressly devoted to the discipline of the procedures and limits of
the use of common parts.
The building regulations may restrict the possibility of individual owners to
use or modify common parts, but refer the approval of this aspect to the majority
of the shareholders' assembly.
PROPERTYMGM Ph.D.eng.CarloZanchetta_UniversityofPadova
2.3 Innovation
every new work that alters in whole or in part the shared property exceeding
the limits of conservation, ordinary administration and enjoyment of it and
that determines a modification of material, form and substance of the thing
itself
Not all change is appropriate to set up innovation in technical-legal sense, but only
the material modification that alters the extent of the substantial common thing, in
the sense that innovation results in a "something new" with function and
purpose different from the original.
changes made by the individual owner particularly directed to a better enjoyment
of the thing itself does not fall under the afore-mentioned case.
it may happen that the advantages indicated in the first paragraph are
accompanied by disadvantages for the community and thus in this case the
innovation will have to be considered prohibited.
PROPERTYMGM Ph.D.eng.CarloZanchetta_UniversityofPadova
The architectural decoration is the main feature inherent in the architectural style
of the building and does not require a particular aesthetic evaluation, as for example.
standards for the protection of environment or similar qualifications
The architectural decoration is different from architectural aspect that
places a limit on the authority to raise new plans.
The architectural decoration is good susceptible of economic assessment, since it is
interest for the community of owners.
The power to prevent building degradation belongs also to the
administrator of the building which can take legal action even in the absence
of the prior resolution of the condominium assembly, even if in most cases, it is
recommended.
in the case of innovations regard a few part of owners community the other
part has not the obligation to participate to costs
If it is not possible to separate the use, innovation is not permitted, unless
the majority of owners that have approved or accepted fully intends to
bear the expense.
PROPERTYMGM Ph.D.eng.CarloZanchetta_UniversityofPadova

3. The regulation of private and shared property - exclusive right of use

3.1 Regulation of exclusive ownership
On the use of exclusive property (house) the owner decides absolutely, regardless if it
occupies the dwelling rent it or places it on sale.
The use for commercial purposes of a dwelling should be disciplined by condominium
Regulations, also because of the noise, odor and traffic of people, that this determines.
Each owner should try to stay in the use of their exclusive property within a civil and orderly
coexistence.
In case of any dispute-condominium owner who feels disturbed by another condominium can
take legal action, even without the consent of the other owners.
Restrictive rules may be provided if the owners assembly have previously voted unanimously.
If the lack of maintenance of an exclusive property causes damage to the neighborhood or to
the common areas, there is an obligation for compensation.
Of course, the individual owner has the right to claim compensation for damage caused to its
exclusive part.
If repairs or construction works in the common areas cause damage to exclusive properties,
the block responds in full of the damage.
PROPERTYMGM Ph.D.eng.CarloZanchetta_UniversityofPadova
3.2 Regulation of shared parts
Each owner has the right to use the common areas, regardless of his ownership
share.
A ban on the use expressed by a resolution condominium would be unlawful.
disproportionate use of a common part of a condominium would be unlawful.

With unanimously approved conventions it can be determined to adopt binding

regulations for all owners when other conventions or the regulation does not
provide otherwise. (SIMPLE MAJORITY)

In general the definition of the majorities that are needed to regulate the rights of
use of common parts is an aspect that needs to be determined maybe by law
PROPERTYMGM Ph.D.eng.CarloZanchetta_UniversityofPadova

3.3 The right of exclusive use

it implies that other owners are excluded from the use of some parts of the
property.
no exclusive right of use can be introduced by a majority vote. Unanimity required!

The transfer of a right to exclusive use of the rule can not be transferred to third
parties, for example. the right to take advantage of a car park can be sold only to
another condominium.
Changes to building common parts sold for exclusive use must be approved by all
the condos.
The maintenance and repairs of the common parts sold for exclusive use are usually
at the expense of the community of owners, unless agreed otherwise.
PROPERTYMGM Ph.D.eng.CarloZanchetta_UniversityofPadova
4. The adverse possession in a condominium
Ownership of parts of property and other real rights are acquired by virtue of
possession continued for twenty years.

The preconditions for an adverse possession are always:

• the actual possession of the thing,
• the passage of time prescribed,
• the possession must be known and visible,
• the possession must be continuous,
• the possession must be purchased in a non-violent or illegal way,
• the exercise of the right of ownership should not be questioned.

For the legal owner that can not use the good there is only one way not to expire
twenty years of adverse possession: to promote legal action for repossession.

It is also necessary to distinguish between the possession and custody, the latter
does not allow the adverse possession.

The Administrator is required to intervene if an owner occupies the common parts, by

closing or fencing them.
PROPERTYMGM Ph.D.eng.CarloZanchetta_UniversityofPadova
5. Shared parking lots
All owners can take advantage of the existing parking, when the condominium
assembly, acting unanimously, does not adopt a different arrangement.

If the parking is insufficient, it may be suitable a occupation in turn.

The use of common parts by individual owners must not become an appropriation
that could lead to adverse possession of the thing or service.

In this context the condominium rules may impose limits on the use of the
common things by individual owners

In no case, however, the right of use of even one owner can be abolished.
PROPERTYMGM Ph.D.eng.CarloZanchetta_UniversityofPadova

6. Trees and hedges in a Condominium

6.1 Distances for trees
Observe the following distances from the border:
three meters by the tall trees (walnut - chestnut - oak - pine - cypress trees - elm
trees - poplars - plane trees and similar);
a meter and a half for not tall trees (stem up to three meters);
half a meter to the vines, shrubs, hedges, the fruit trees with a height lower than two
meters and a half.
6.2 Trees condominium property
investigate whether the lack of maintenance of the trees is a negligent behavior of the
community of owners
6.3 Pruning of trees
in the absence of specific regulations contained in the building regulations, the costs
for storage and maintenance of a garden of common property must be divided among
all buildings according to their shares thousandths.

The cost of pruning of trees that exist on the soil of the exclusive property of a single
condominium is in charge to all owners when it is functional to the plant decoration of
the entire building
PROPERTYMGM Ph.D.eng.CarloZanchetta_UniversityofPadova

PART II: Condominium Administration

PROPERTYMGM Ph.D.eng.CarloZanchetta_UniversityofPadova

1. condominium rules
It is the law inside the condominium.
It determines:
the use of common parts
the allocation of costs on the basis of the table of thousandth
The rules for the decorum of the building
The rules relating to the administrator.
Its adoption is required if the number of owners exceed a certain number.
It can be written by the manufacturer-seller and included in contracts.
It is also possible that the assembly of owners, after the establishment of the
condominium, approves the Regulation by majority.
The rules of the Regulation affecting the usability and destination of unique
properties, if approved by the assembly, must be approved unanimously.
PROPERTYMGM Ph.D.eng.CarloZanchetta_UniversityofPadova
2. The table of thousandths
It expresses the economic value of each exclusive property, in relation to the value of
the entire building, which was assumed to be equal to 1000.
It is therefore based only on the value of property and shows the ideal share of
ownership of the parts and systems of the building.
Typically the thousandth table is prepared by the manufacturer-seller before the
notarial deed for the transfer of ownership.
If in a building there is not a thousandth table, the administrator with a shareholder
resolution instructs a technician to its drafting.
Even a change in the table of thousandth can occur only with a unanimous decision.
Even one condominium may request the revision or amendment of the table of
thousandth, when it contains errors, or when significant changes are occurring in the
building exclusive properties or in the common areas
PROPERTYMGM Ph.D.eng.CarloZanchetta_UniversityofPadova
2.1 Criteria for determining the table of thousandth
"reduction factors" are important in determining a thousandth tables
they manage the value of the different kind of surface or volumes of the individual
units.

1) ratio of destination or cadastral category: it is only used if in the same building

there are several categories of land units;
2) utilization coefficient: identifies the particular use of each room;
3) ratio of height: applied if the internal height is different between the various units,
in this case you will have to calculate the volume more than the surface;
4) coefficient of orientation: applied if the building includes more housing units per
floor, each with a different exposure to the sun;
5) ratio of exposure: is taken into account if the various properties of a building have
a different panoramic view;
6) coefficient floor: considers the effects of height from the ground to a real estate
unit, and depends on the fact that the property has or has not the elevator;
7) coefficient of brightness: takes into account the amount of light that penetrates in
the various rooms according to the height of the floors.
PROPERTYMGM Ph.D.eng.CarloZanchetta_UniversityofPadova

3. condominium assembly
The assembly of owners is the sovereign subject in an apartment building.
Following a short list of the most important skills:

• appointment and removal of the administrator;

• determination of the remuneration of the administrator;
• Approval of the financial documents (actual and estimated budget);
• apportionment of costs between the owners;
• resolution for the execution of works of extraordinary maintenance and possible
establishment of a reserve fund;
• approval of execution of urgent and unexpected works committed by the
administrator without shareholders' resolution;
• resolution on the measures taken by the administrator and exceeding its powers;
• approval and amendment of condominium rules;
• dissolution or division of the condominium;
• carry out a legal action.
PROPERTYMGM Ph.D.eng.CarloZanchetta_UniversityofPadova

3.2 Resolutions and assemblies

The assembly appoints a president who in turn instructs the secretary who will
compile the memorandum
The memorandum should be drawn up at the meeting and signed by the
president and the secretary immediately after its conclusion.
Important decisions, for which unanimity is required, require the signature of all
owners.
In the first call, the meeting shall be duly constituted if there are two-thirds of
the owners, who also represent two-thirds of the value of the building (666.66
thousandths).
In the second call there must be the presence of a third of the owners
representing at least one-third of the value of the building (333.33 thousandths).
Owners of more housing units (homes, offices or shops) count as a single
person, their thousandths are instead added.
PROPERTYMGM Ph.D.eng.CarloZanchetta_UniversityofPadova
3.5 Le maggioranze assembleari più importanti:
# co-owners/participants thousandth
• administrator appointment majority of participants 50%
• definition of new rights on the property totality of co-owners 100% WRITTEN
• elimination of barriers I majority of participants 50%
II 1/3 co-owners 33%
• Innovations majority of co-owners 66%
• Heavy innovations totality of co-owners 100%
• rehabilitation majority of co-owners 50%
• contentious I majority of participants 50%
II majority of 1/3 co-owners 33%
• ordinary maintenance I majority of participants 50%
II majority of 1/3 co-owners 33%
• extra ordinary maintenance majority of co-owners 50%
• new parkings majority of co-owners 50%
• condominium rules agreement majority of 1/3 co-owners 50%
• condominium rules modification (property) totality of co-owners 100% WRITTEN
• thousandth sheet modification totality of co-owners 100%
• rebuilding of less than 3/4 of a property I majority of participants 50%
II majority of more than 1/2 co-owners 50%
• rebuilding of more than 3/4 of a property totality of co-owners 100%
• energy redevelopement majority of participants 50%
• heat metering implementation presence of majority of co-owners 50%
• detachment from centralized systems presence of majority of co-owners 50%
• sale of common parts totality of co-owners 100% WRITTEN
• superelevation totality of co-owners 100% WRITTEN
PROPERTYMGM Ph.D.eng.CarloZanchetta_UniversityofPadova
4. The administrator
In a condominium the administrator is the "housekeeping". Legally he execute a
warrant, it means that he is obliged to fulfill one or more legal acts on behalf of the
owners.
4.1 Appointment and removal
It provides for the appointment of an administrator when the condos are more than
four. He is appointed by the condominiums, in first and second call.
There is no provision for an administrator to be part of a professional body. The
administrator can be revoked at any time and without any particular motivation with
the same majority required for the appointment. On request of a single owner it can
only be revoked by a court in the following cases:
1. if it does not inform the assembly of a condominium of a court order that goes
beyond its powers;
2. if there are reasonable suspicions of serious irregularities;
3. if for two years he has not prepared budgets.
In this case the administrator can appeal within 10 days.
The administrator remains in office for one year, it can be confirmed or replaced, in
this case remain in office for ordinary administration until the regular election of the
new administrator.
The remuneration of the administrator is set by the Shareholders Association.
PROPERTYMGM Ph.D.eng.CarloZanchetta_UniversityofPadova
4.2 Duties and responsibilities of the administrator
• execute the resolutions of Shareholders Assembly
• ensure compliance with the building regulations;
• regulate the use of common things and provide services in the common interest:
• collect contributions and disburse any expenses:
• Let a decree of injunction be immediately enforceable.
• filing an action against a third party which affect the rights attaching to the
common things
• conservation of the housing stock
• execution of the necessary maintenance work,
• taking responsibility for the smooth operation and security of the common services
(electricity, heating, elevator, sewage etc.).
• legal representation in cases of disputes involving shareholders association

For additional services an extra compensation is up to the administrator (eg.

construction works of a certain size, legal action, extraordinary meetings, reminders
etc.).
The Administrator responds normally for damage caused by errors or omissions in
achieving its mission.
It would be useful to take out an insurance policy paid by the condominium.
PROPERTYMGM Ph.D.eng.CarloZanchetta_UniversityofPadova

PART III: Real Estate Management

PROPERTYMGM Ph.D.eng.CarloZanchetta_UniversityofPadova

Asset Management:
administration of all strategic activities related to a real estate
portfolio
Property Management:
Overall economic, management and administration activities
aimed at monitoring and optimizing the profitability of real estate
assets
Building Management:
all the activities necessary to manage the full functionality of the
activities and services related to the building and to solve
problems related to its daily use
Facility Management:
all the activities necessary to manage the full functionality of
services related to space and the people connected to the
building
PROPERTYMGM Ph.D.eng.CarloZanchetta_UniversityofPadova

ASSET MANAGEMENT

PROPERTY MANAGEMENT

BUILDING MANAGEMENT

FACILITY MANAGEMENT