Termination of management contracts for multi-apartment residential buildings: legislation and legal positions of the Supreme Arbitration Court of the Russian Federation

For each house, a management company must be selected, whose responsibilities include managing the building, its repair and improvement. But often old houses are abandoned by management companies, so residents of such buildings face serious problems.

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Can a management company give up a house?

These companies have the right to independently select houses with residents of which contracts will be drawn up. Therefore, if a company, a month before the expiration of the contract, informs about its refusal to renew, then it ceases to be involved in the management of a particular house.

After termination of the contract, receipts from the direct resource companies for utilities are sent to residents. Periodic repair work is not carried out in the house, and floors are not washed or other similar paid actions are performed.

Legitimate reasons

Management companies can refuse houses for various reasons. These include:

• violation of significant clauses of the contract by the residents of the house;
• the company's operating license is revoked;
• bankruptcy of the organization;
• the company does not want to deal with the repair and management of old houses, which are problems, since various serious violations constantly arise that require the investment of significant funds;
• lack of payment from most residents of the house.

How to check the legality of a management company's refusal to relinquish a house? Photo: 101urist.com

Regardless of the reason for terminating the contract, the company must ensure that the relationship is terminated legally.

Pros and cons of subsidiary management companies

Cons:
All financial flows for house maintenance pass through an affiliated company and are controlled by the developer

Through a “pocket” management organization, it is easier for the developer to ignore complaints about the quality of the house while it is under warranty.

The administration of such a management company favors the parent company, and is a priori not on the side of the residents in resolving current issues of house maintenance.

Affiliated management companies often inflate the cost of utilities. On average, the work of a management company from a developer turns out to be more expensive due to the provision of additional services.

The management company disposes of the general territory of the residential complex at its own discretion. Until the creation of the HOA, attics, roofs, basements, and facades of the building are under the control of the management company. Utility companies can rent out these premises to third parties (cellular operators or Internet providers), despite the dissatisfaction of residents.

The principle of operation is “After us there may be a flood!” This happens when “utility workers” work without the control of the developer and residents. At the end of the warranty period, the management company from the developer may be taken out of operation of the house. The latter remains “ownerless” with many deficiencies.

In accordance with the law, the developer is obliged to transfer the house to the “utility workers” three months after putting the facility into operation, but the new building may not have time to be occupied during this period, especially during a crisis.

Until the new house is at least half occupied (50%), residents do not have the right to organize a Home Owners Association (HOA) and independently choose a utility service.

Pros:

The “subsidiary” management company will begin to provide the full range of utilities and operational services simultaneously with the issuance of keys to the apartment.

The level of competence in complex engineering equipment is higher than that of an organization “from the street”.

It is in the interests of the developer to additionally control the quality of work of his management company on an equal basis with the residents, because he is interested in maintaining the positive image of the project and brand.

The developer may have positive experience in housing management, while the HOA meeting may choose an unqualified management company, focusing, for example, only on the low cost of maintaining the house.

Throughout the entire warranty period, the “own” management company serves as an additional link between the developer and residents and is under double control.

Let us pay attention to the last two criteria: an independent management company is a priori not responsible for the developer’s shortcomings, the case will most likely be sent to court, and the proceedings may drag on for months and even years. An affiliated company has no right to do this, and construction flaws will have to be corrected in any case. Note that under the contract the developer is obliged to correct the identified construction defects within a 5-year warranty period.

Procedure for abandoning a home

If a management company, for various reasons, wants to abandon a building, then its employees must have a good understanding of exactly how this process is carried out. Therefore, the following steps are performed:

• a meeting of residents is organized;
• it notifies all owners of apartments in the building that the company refuses to manage the building;
• options for drawing up an agreement to resolve conflict situations may be proposed;
• if it is impossible to reach a consensus, then cooperation ceases;
• minutes of the meeting are drawn up and signed;
• the company applies to the regional administration with a statement indicating the cessation of work with a specific house;
• homeowners accept the building from the company on the basis of a special act;
• Management company employees transfer the necessary documents regarding the house to housing supervision and the tax office.

The owners of the house must then decide for themselves how their house will be managed. If residents cannot decide within 30 days to whom their house will be transferred, then the decision is made by the local administration.

How to legally register

If the initiator of termination of the relationship is the company itself, then different methods can be chosen for this:

• by mutual agreement, if the majority of the residents of the house want to stop cooperating, for which a peace agreement is signed;
• with the help of an arbitrator, for which a claim is filed in court, but for this there must be compelling reasons, for example, lack of payment or a change in the circumstances of the operation of the management company;
• unilaterally if the tenants violate the essential terms of the agreement, which causes serious damage to the company.

What should residents do if the property has been abandoned by the management company? Watch the video:

Other grounds for termination of cooperation may apply, but they must be provided for in the contract.

What documents are required?

If the management company decides to abandon the apartment building, then its employees prepare the necessary documentation for these purposes. The papers must be handed over to the residents of the building and various government agencies. These documents include:

• a correctly drawn up appeal to the owners of apartments in the building, which indicates the grounds for termination of the contract;
• act to the housing inspection;
• contacting the regional administration;
• papers with information about the features of cooperation over the past two months;
• statements from personal accounts;
• expense report;
• minutes of meetings;
• contracts concluded with contractors;
• description of the property of the house.

Each government agency may require additional documentation. If the process is carried out through the court, then additional financial statements of the company are required.

Refusal due to loss of license

The most popular reason for a management company to abandon a house is that the organization simply loses the right to manage houses due to the loss of a license for such activities. Most often, a license is revoked for the following reasons:

• the company incorrectly prepares the minutes of the meeting by the owner of the house;
• the necessary information is missing in the documents;
• information about the company’s work is not posted in open sources.

Necessary documents when the management company abandons the house. Photo: 101urist.com

If the housing inspection refuses to issue a management license, then such a decision must be motivated. The company must notify residents of the loss of their work permit, which results in termination of the partnership.

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Many management organizations in the spring of 2015 feverishly concluded management agreements in the confusion with licensing. We all then hoped for perpetual licenses (in vain, as it turned out), and therefore, in the terms of management contracts, we prescribed the maximum possible under clause 1, part 5, art. 162 of the Housing Code of the Russian Federation for a five-year period. In the face of an unclear future, we all thought that the maximum term of the management agreement would ensure stability for at least five years.

We are now approaching the beginning of the fifth and final year of the treaties. There are also those whose management contracts are limited to one or two years. We are united by one problem - how to painlessly “release into free floating” those apartment buildings that we are no longer interested in for various reasons (the appearance of “writers” or simply economic disadvantage).

Taking this opportunity, we can recall that at the end of 2015, in the newspaper “Housing and Communal Services” on our forum there was an article about the publicity of the management agreement (that this is far from a public agreement). That article indicated, by the way, that a management agreement is concluded by two equal parties and that the procedure for concluding a management agreement is regulated by the same provisions of the Civil Code of the Russian Federation as any other agreement on the territory of the Russian Federation.

And if the conclusion of a management agreement takes place taking into account the norms of the Civil Code of the Russian Federation, then termination also falls under the regulation of the Civil Code. But we are confused by the wording used by the legislator. Compare:

As we can see, the termination of a management agreement does not seem to be related to the Civil Code of the Russian Federation, but in fact, the situation with termination is much simpler than with termination.
By the way, if you still do not understand the difference between these two concepts, carefully read the article to the end. So, termination of a contract is not its termination, and even more so it is not a unilateral refusal of the contract. From paragraphs 1 and 2 of Art. 450 of the Civil Code of the Russian Federation it follows that termination occurs either by mutual consent or in court at the request of one of the parties to the agreement.

As we see, part 6 of Art. 162 of the RF Housing Code does not require the consent of both parties to the management agreement for its termination; a statement from one party is sufficient, therefore, we have already found the difference between termination and termination. Why is it important? Read on, get into it!

Termination of a management contract is not a unilateral refusal. We have no right to unilateral refusal (tell this to all GZHI employees) after the Federal Law of 03/08/2015 No. 42-FZ “On Amendments to Part One of the Civil Code of the Russian Federation.”

From paragraph 1 of Art. 310 of the Civil Code of the Russian Federation it follows that it is impossible to “refuse” if the right to refuse is not enshrined in any law. Therefore, in order to have a basis to stipulate in the management agreement our right to unilateral refusal to perform, it is necessary that such a possibility be in the applicable law. Alas, there is no such “loophole”.

From the second paragraph of paragraph 2 of Art. 310 of the Civil Code of the Russian Federation follows a general rule for us: “by default” the right to unilateral refusal is given to our beloved residents, and not to the management organization. However, they already have it according to the Housing Code of the Russian Federation. Is there somewhere in the law or other legal act an indication of the possibility of granting the contractual right of refusal to the management organization? No.

According to Part 8 of Art. 162 of the Housing Code of the Russian Federation, changes and (or) termination of the management agreement for an apartment building are carried out in the manner prescribed by civil legislation, that is, there is a direct reference to Chapter 29 of the Civil Code of the Russian Federation. Alas, clause 3 of Art. 450 of the Civil Code of the Russian Federation has lost force (yes, 42-FZ)... That’s where it was

the possibility by agreement of the parties (= management agreement) to provide for our right to unilateral refusal.

Let's return to our contracts. If you have read this far, then you now understand that termination of a management agreement is not a criminal act, it does not require the consent of the other party to the agreement, it does not require either holding a general meeting of owners or drawing up an additional agreement to the management agreement.

Let's get to the fun part: who are we addressing our application to terminate the management contract? Of course, the owners of the premises, who, by virtue of Part 1 of Art. 162 of the Housing Code of the Russian Federation are a party to the management agreement!

Special cases are indicated in Part 2 of Art. 162 of the Housing Code of the Russian Federation - the second party to the management agreement, along with the owners of the premises, can be the management bodies of the HOA, the management bodies of a housing cooperative or other specialized consumer cooperative, the persons specified in clause 6 of Part 2 of Art. 153 of the Housing Code of the Russian Federation, or the developer (in the case provided for in Part 14 of Article 161 of the Housing Code of the Russian Federation).

And here you need to rely on the order of interaction established by the terms of the management agreement and (or) the decision of the general meeting. What are the ways to declare termination?

• letter to the House Council / HOA Board;
• announcement on the information board;
• notification to the State Information System of Housing and Communal Services (and this is precisely what it is designed for);
• an advertisement on the back of a payment document/in a newspaper/on TV;
• a valuable letter with an inventory of attachments (to everyone!).

In a word, you need to use all available methods with an eye to Art. 165.1 of the Civil Code of the Russian Federation (where it is written about legally significant messages!). For reinsurance, you can read about how you can declare termination in the appeal ruling of the Tambov Regional Court dated July 13, 2015 in case No. 33-1988/2015.

Read about what not to do in Resolution 13 of the AAS dated 09.11.2015 No. 13AP-22894/2015.

The reaction of the “second party to the contract” is of little interest to us. We don’t need it, we are not asking for permission, but we are declaring that the concert is over, the camp is leaving for the sky. The worst thing is about to begin.

By virtue of Part 2 of Art. 198 of the Housing Code of the Russian Federation, within five working days from the termination of the management agreement, the licensee (= management organization) is obliged to place this information in the system (which one - no need to comment?), and also send it to the state housing supervision authority.

As follows from Part 3 of Art. 198 of the Housing Code of the Russian Federation, the state housing supervision body after receiving the information specified in Part 2 of Art. 198 of the Housing Code of the Russian Federation, makes changes to the register of licenses of a constituent entity of the Russian Federation, based on the procedure enshrined in Order of the Ministry of Construction of Russia dated December 25, 2015 No. 938/pr. In fact, the GZHN body makes an entry in the register about the termination of the management agreement.

Formally, it is enough for us to fill out an application (clause 2 of Order 938/pr) to make changes to the register in connection with the termination of the management agreement, and attach to it the documents specified in clause 3 of Order 938/pr (of course, not all).

So we come to the next interesting point: what does Part 3 of Art. 200 housing complex of the Russian Federation?

After reading parts 5 - 5.4 art. 198 of the Housing Code of the Russian Federation, it becomes clear that they indicate cases of exclusion from the register of licenses of information about an apartment building on grounds, let’s say, guilty, when the management organization “fell up.”

In other words, excluding information from the license register is not the same as making changes to the register in connection with the termination of the management agreement. This point must be clearly understood! Termination of an agreement and a corresponding change in the register of licenses is, let’s say, a normal, “peaceful” procedure, when all the terms of the management agreement are met, and most importantly, its validity period has expired.

The exclusion of information from the register occurs through the fault of the management organization itself, regardless of its consent, regardless of whether the management agreement has expired, regardless of what the owners of the premises think about it.

Excluding information from the register is an extreme measure that is not included in the Civil Code of the Russian Federation and is in no way connected with it.

Exclusion of information from the register of licenses is grounds for termination of house management activities in the manner established by Art. 200 of the Housing Code of the Russian Federation (but is not a termination of the management agreement in the literal sense of the word, since the body of the Civil Housing Authority is not a party to the management agreement and has no independent interest in its termination). What happens to the management agreement in this case? Does it need to be terminated by agreement of the parties? Alas, the Housing Code of the Russian Federation and the Civil Code of the Russian Federation are silent about this. And this question is rather theoretical; within the framework of this article there was no goal to develop it.

So, the logic is this: excluding information from the register entails the need to apply Art. 200 housing complex of the Russian Federation. And vice versa: if there was no exception (and for us, termination of the contract is grounds for making changes to the register, but not grounds for excluding from the register information about the house in respect of which we terminated the contract), then we are not obliged to comply with the procedure specified in Art. . 200 housing complex of the Russian Federation.

The first surprise for us: after termination of the contract, we seem to have no obligation to transfer documentation and keys/passwords/codes to anyone (Part 1 of Article 200 of the RF Housing Code). From experience, we can say that it is better to hand over everything to the municipality. In the spring of 2015, there was a case: several two-story buildings ignored meetings to select a management organization, or rather, they left the “big HOA”, but did not “get anywhere”. As a result, the technical documentation was submitted to the municipality so that an open competition could be held.

Second surprise: mentioned in Part 2 of Art. 200 of the Housing Code of the Russian Federation “the procedure for terminating the activity of managing an apartment building in connection with the exclusion of information about an apartment building from the register of licenses of a constituent entity of the Russian Federation, termination of a license or its cancellation” has not been established by the Government of the Russian Federation. And there is no need to point at Order 938/pr, since it is devoted to completely different issues and was adopted in accordance with Part 3 of Art. 198 Housing Code of the Russian Federation.

And now we come to a duty that does not apply to us. By virtue of Part 3 of Art. 200 of the Housing Code of the Russian Federation, we must perform duties for managing an apartment building, providing services and (or) performing work on the maintenance and repair of common property in an apartment building in accordance with the requirements of the legislation of the Russian Federation only in case of exception

information about an apartment building from the register of licenses of a constituent entity of the Russian Federation, as well as in case of termination or cancellation of a license in accordance with Art. 199 Housing Code of the Russian Federation.

Since our management agreement was terminated, the State Housing Authority made a change to the register of licenses (and did not exclude information about the house from the register!). That's all.

The Ministry of Construction of Russia, in letter No. 241-AT/04 dated January 11, 2017, explained that the procedure for terminating activities related to managing an apartment building due to the exclusion of information about the building from the register of licenses of a constituent entity of the Russian Federation does not coincide with the procedure for terminating activities due to the termination of an apartment management agreement home.

The procedure for terminating the activities of a management organization due to the termination of a management agreement for an apartment building is established by the agreement itself or by the norms of the Civil Code of the Russian Federation.

In the event of termination of the management agreement for an apartment building due to the expiration of the term, the party that does not want to renew the agreement is obliged to notify the other party about this, including sending this information to the state housing supervision authority and local government authority.

The management agreement for an apartment building is considered terminated from the date specified in it. Consequently, the management organization ceases management of the apartment building from the date specified in the contract.

In support of this position: Resolution of the Arbitration Court of the North-Western District dated 04/07/2016 No. F07-672/2016, Resolution 2 of the AAS dated 07/17/2015 No. 02AP-5103/2015, appeal ruling of the St. Petersburg City Court dated 03/27/2015. 2017 No. 33a-6072/2017.

Connoisseurs of beauty can also study the excellent decision of the AS of the Krasnoyarsk Territory dated May 31, 2017 in case No. A33-3616/2017, which describes how the licensee notified the owners of the termination of the contract.

To summarize the above, we repeat: termination of a management contract is not its termination, does not require the consent of the other party, and is not a refusal to fulfill the contract. Excluding information about a house from the register of licenses is an extraordinary measure, which does not directly terminate the management contract itself, but actually prohibits managing the house.

Key point: we excluded the house from the register - but we are dragging our feet until the “next person interested” appears. And this is logical precisely from the point of view of civil law, because the management contract has not formally terminated.

We terminated the contract - we made a change to the register and we are not obliged to “plow” under Part 3 of Art. 200 of the Housing Code of the Russian Federation, since the obligation was terminated by proper fulfillment. And what they write about the “principle of continuity of management” is the sadness of the owners and the municipality, to whom we informed in advance about the upcoming farewell. We are not obliged to maintain other people’s property at our own expense; the Constitutional Court of the Russian Federation wrote about this.

Now watch your hands... Bonus for a forum resident with the nickname “Mind Games”.

Neither the Civil Code of the Russian Federation nor the Housing Code of the Russian Federation contain a direct prohibition to indicate in the management agreement that upon the occurrence/non-occurrence of certain, clearly formulated circumstances (for example, a certain violation of the contract, failure to perform a certain action - non-approval of the amount of payment?), the agreement is considered terminated by the pre-expressed consent of both sides This is not a waiver of the contract, is it?

These seditious thoughts were prompted by the cunning Resolution of the Presidium of the Supreme Arbitration Court of the Russian Federation dated November 13, 2012 No. 7454/12. The most interesting thing there begins on sheet 11.

Termination of a management contract (reduction of the term) due to the occurrence of a cancellation condition is not a unilateral refusal to perform, agree? Here Art. 327.1, clause 2 of Art. will help us. 157 Civil Code of the Russian Federation.

It will be nice if we manage to implement this scheme! We will have the opportunity to terminate the management contract by moving its expiration date closer.

Best regards, Alexey Tishchenko.

provides legal services to management companies and homeowners associations. All the necessary information about the service is here

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You can discuss the article and ask questions on our forum or use the form below.

How to defend the right to manage a home

A management company can lose its license only if there are compelling reasons. According to Art. 198 LCD the following requirements must be met:

• the company is offered the opportunity to eliminate violations;
• a re-check is carried out;
• If violations are not eliminated, the license is revoked by court decision.

The company can defend its rights if it proves that it has not violated legal requirements. For this purpose, a claim is filed in court.

If the company is deprived of its license, then under Art. 200 housing complexes within 30 days, the residents of the house must enter into an agreement with another company or find another way to manage the house.

What to do if the management company has abandoned the house

If the management company refuses to manage the house, then the residents must choose a new management company. Various methods can be used for this:

• holding a general meeting where a new organization is elected;
• contacting the local administration;
• selection of a management company through the housing inspection.

This video will tell you how to sue the management company and win:

Applications from new management companies must be sent to the local administration and a representative of the owners of apartments in the building. All company representatives are required to provide maximum information about their work to apartment owners.

For a meeting to be official, more than half of the residents must be present. From the proposed options, residents choose the optimal company, and if the required number of owners is missing, the meeting is postponed to the next day.

The same is done if it is not possible to choose one company. If a company is selected, then all the nuances are discussed with it, after which a contract is signed. After this, management of the house is transferred to the new organization.

The State Housing Authority is delaying the transfer of the house to the management of a new company

The process of changing the management organization is long and lengthy, which affects the owners themselves, two organizations, the RSO, the municipality, and the State Housing Authority. But the main thing is that it affects the apartment building itself, which during the “interregnum” period may find itself without proper maintenance and repair.

For example, at a general meeting, the owners decided to terminate the current management agreement and chose a new management company. The process of transferring MKD from company to company starts. At the same time, the new MA can begin managing the house only at the moment when the GZHN body makes changes to the register of licenses of a constituent entity of the Russian Federation. And this process does not always happen quickly: the imperfection of the legislation gives the State Property Committee the opportunity to deny this to the MA or delay the procedure.

Of course, a new company can defend its rights in court, and often the court sides with the management authority if the actions of the State Housing Authority body are seen to violate legal requirements. Examples of such cases are the resolution of the Arbitration Court of the Ural District dated September 29, 2016 No. F09-8705/16 in case No. A71-12411/2015 or the decision of the Supreme Court of the Russian Federation dated August 13, 2019 in case No. AKPI 19-474. However, the change of management is greatly delayed, and the house in such a situation is left with virtually no control.

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Confusion about the rights and responsibilities of the previous and new management organizations

If the owners decide to change the management company, and the State Housing Authority delays making changes to the register, the previous management company formally still manages the house. And here difficulties arise for the residents of the house:

• Who should pay for housing and communal services?
• Who is responsible for cleaning the territory, repairs, and providing agreed services for the maintenance of common property?
• Where to go in case of an accident?

According to the law, until changes are made to the register of licenses, the previous management organization is responsible for all this, but in reality it may refuse to fulfill its obligations under the terminated management agreement. At the same time, the new MA essentially cannot do this, and if it does, it will do so at its own expense, because it has not yet acquired the right to issue bills for housing and communal services.

Hence, another problem that often arises in apartment buildings that are supposed to be transferred to the management of a new company, but the State Housing Property Authority has not yet formalized this - the appearance of double receipts for housing and communal services. Paying to the old or new management authority and how not to make a mistake, how not to lose money - these are questions that may arise for residents of apartment buildings during such a transition period.

Important to remember

Changing the management organization is an extreme measure that the owners should take in the case when other methods of influencing the existing company do not work, and it performs its duties extremely poorly. The process in many cases brings the management and owners to the courts, which does not contribute to improving the conditions of maintenance and repair of the house.

Therefore, owners should think about whether it is worth initiating the procedure for terminating the current contract just because the new management company promises mountains of gold and lures them in with rosy promises. Whether she will fulfill them, only time will tell, but the owners will provide for themselves 100% during the problematic period during the transition from one management company to another. Whether the game is worth the candle is a question that should be carefully considered.

Challenging the protocol of common owners of premises on the selection of a new management organization

The GZHN body may refuse to allow a company to include a house in the register of licenses if it considers that the relevant general meeting of owners was held with significant violations and the decisions taken at it are illegitimate.

Organizing a general meeting of owners requires a lot of time and knowledge, since failure to comply with at least one requirement for this procedure will give the State Housing Property Inspectorate a chance to challenge the protocol in court. The first difficulty for owners is to initiate such a meeting, because the current management company will not do this, and the new one has no legal right.

Consequently, the entire burden falls on the owners themselves, who will act as initiators of the OSS. It is they who must draw up and distribute a notice of the meeting with an agenda, drafting them legally correctly in accordance with the requirements of Art. Art. 44 – 48 Housing Code of the Russian Federation.

The next difficulty is to obtain a quorum so that the meeting has the authority to make decisions on issues on the agenda (Part 3 of Article 45 of the Housing Code of the Russian Federation). Then the initiators and/or members of the counting commission elected at the OSS must correctly count the votes according to the collected ballots and draw up the OSS protocol. The owners of premises in the house must be notified of the decisions made at the meeting, in accordance with Part 3 of Art. 46 Housing Code of the Russian Federation.

If at least one legal requirement for holding general meetings is not met, the minutes of the general meeting may be appealed in court. The right to challenge the decision of the general meeting was granted to owners who either did not take part in the OSS, or voted against changing the management company, or considered that their will was violated during voting.

And although, according to the decision of the Supreme Court of the Russian Federation dated September 29, 2017 No. AKPI17-704, the fact of going to court to invalidate the owners’ decision to change the management organization cannot serve as a basis for refusing or suspending the consideration of an application for amending the register of licenses of a constituent entity of the Russian Federation, the State Housing Inspectorate bodies they often do this, thereby again delaying the transition of the house to the management of a new management company.

We should not forget about the duties of the State Housing Registration Authority, prescribed in Part 1.1 of Art. 46 of the Housing Code of the Russian Federation, if two or more minutes of the general meeting containing decisions on similar issues on the agenda are received within 3 months in a row, conduct an unscheduled inspection of the meeting. The check will also delay making changes to the registry.

Disappointment with the new management organization

The new management organization itself can become a problem for the owners, even if the procedure for changing the management company goes quickly and smoothly:

1. A new company on the market.

If a new company that has just entered the market promises excellent quality of services at a minimal price, these may only be beautiful words. In fact, without experience in this area, without established connections with the RSO, contractors and suppliers, such a management company will not be able to cope with the maintenance of the common property of the house.

The owners will have to change the management organization again, or, together with the chosen management company, go through a process of trial, error and administrative liability for violations.

1. High expectations.

An organization to get another house under management can promise to improve living conditions and make repairs to everything in a year. In the end, everything will end only with a signed agreement, the existing state of the common property will not change.

Disputes between two companies about the transfer of technical documentation and remaining funds for the maintenance and repair of the building

For a new management company, the procedure for accepting a house for management after the owners have terminated the previous management agreement, in addition to the already mentioned problems with the civil housing authority and challenging in court the very fact of concluding an agreement with it, may lead to the need to resolve the following issues:

1. Failure to deliver technical documentation to the home until it is demanded in court.
2. Transfers from the previous management company of unspent funds that the owners transferred for work and services that have not yet been provided.

If the previous management company does not want to voluntarily hand over the documentation and collected funds, then the dispute between the two management companies will again go to court. And at this time, the new management organization must manage the house, take measures for the proper maintenance and repair of the apartment building. Doing this without technical documentation and funds will be difficult, which will affect the quality of maintenance of the house, and, consequently, the living conditions of the owners themselves.

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