A characteristic feature of a gated residential complex, apart from its scale, is the limited access of outsiders to a specific land plot, which unites one or more private buildings governed by condominium law, as well as other objects and common areas that serve or are used by the owners or residents. This is usually the reason for the adoption of specific regulations on the use and management of the complex.

In addition to dwellings, common areas, offices, studios, underground car parks, garages, sports facilities, playgrounds, etc. are also included within a gated community.

This imposes a different regime for the management of the common areas in a gated community compared to the general management regime of a condominium. The management of the common areas is regulated by a written contract with notarised signatures between the investor and the owners of the independent objects, which usually includes issues related to the security of the complex, its cleaning, etc., which facilitates the management of the complex and creates comfort for the residents.

The agreement is registered by the investor with the Registry Agency on the account of each individual object. The purpose of this registration is to ensure that the subsequent purchasers of flats in the gated complex are aware of the contents of the contract which they will be bound to perform.

What happens to the management of the common areas where there is no such agreement between the developer and the owners of the individual units in a gated community?

The law does not contain a means of coercion, nor does it regulate the consequences of the absence of a management contract or the termination of a management contract. In practice, it is accepted that in the absence of such a contract, the general rules for the management of common areas in a condominium regime should be applied.

The owners and occupiers of each entrance shall hold a general meeting and resolve on the common parts of the building adjacent to the respective independent units of the respective entrance. The general meeting shall be convened by the manager or at the request of the owners having at least 20 per cent of the ideal parts of the common parts of the building. The general meeting shall be held if the owners of at least 67 per cent of the condominium common parts are present in person or by representatives.

In this case, the owners participating in the General Meeting shall have the right to vote corresponding to their ownership of the ideal parts of the common parts of the building and the decisions shall be adopted by the respective majorities provided for.

On the other hand, however, when it is necessary to resolve a matter that is related to the common parts of two or more condominiums, a joint general meeting shall be held in which the condominiums shall elect an equal number of representatives. The decisions of the joint general meeting, unlike the decisions of the general meetings of the individual entrances, shall be adopted by a two-thirds majority of the representatives of the respective condominiums present, irrespective of the size of the ideal parts they represent.

It is the practice of the General Assembly to select and entrust the management of the common areas to an external legal entity to carry out the administrative and financial services, the technical maintenance of the common areas, the cleaning of the gardens and underground car parks, the maintenance of the green areas, swimming pools, restaurants and gyms.

Gated residential complexes are by their nature designed to exist and be managed as a single organism. When deciding to invest in such a complex, purchasers are usually driven by the expectation that they will not only receive a residential unit of appropriate quality and location, but also a quality communal living environment that offers a high standard of service and security.

Therefore, the management of common areas in gated communities should not be left in the hands of a multitude of individual site owners under general rules that do not offer detailed adequate regulation for this specific type of project. Instead, it is advisable to conclude a specific management contract that takes into account the specificities of the particular complex and its management, and guarantees the rights and obligations of the owners and the developer.

Desislava Dimitrova     Boris Strijlev