Arrears

In order to ensure that sufficient funds are always available in the current account, it is necessary both for the co-owners to always pay the correct amount in good time and for the property administrator to chase up bad payers quickly. The Law on co-ownership has a number of built-in securities in order to protect the association in the event of default. So the civil-law notary is to deduct the arrears owed by the seller from the proceeds of the sale of the seller's property.

The civil-law notary is then to notify the property administrator if the seller does not agree with these deductions. The property administrator will then have a short period of time within which to arrange for those funds to be seized so that the matter can then be decided by means of further discussion if the seller continues to refuse to settle his outstanding debt.

Unfortunately it is still the case that, under current regulations, the association of co-owners is not a preferred creditor like the banks or the FPS for Finance, for example, so that it is often the case that no monies are left over for the association after a sale. Therefore the only option will be to distribute the outstanding debt in the next annual final statement, according to the principle of enforced solidarity among the co-owners, between all the co-owners so that 100% of the working capital can be made up again.

On the other hand, the property administrator always has the right to sue a co-owner who is in arrears in order to be able to exercise his statutory task to manage the assets of the association correctly. Depending on the provisions in the rules of co-ownership and/or subsequent decisions made by the general meeting, various costs, interest and compensation may be demanded from the co-owner in default.