Like any other legal entity, the Homeowners' Association (SVJ) must have an organizational structure (the bodies of the SVJ) – at least the highest body, which is the general meeting consisting of all unit owners voting according to the size of their shares, and the statutory body, which is the board or chairman elected by the general meeting.

It is the board or chairman who is primarily responsible for the management of the building and land. They act on behalf of the SVJ externally and make decisions on all matters that are not entrusted by law or the statutes to the general meeting, or those that the general meeting has not reserved for itself (for example, changes to the statutes, election of board members or chairman, approval of the budget, or decisions about the payment of services and contributions).

In performing their duties, the board members or chairman are required to act with the so-called "due care of a prudent manager." This demands a certain level of knowledge, skills, diligence, and loyalty towards the SVJ. Board members (or the chairman), whether elected from the ranks of SVJ members or as external professionals, are liable for damage caused to the SVJ by breaching this due care (e.g., if they fail to properly collect the SVJ’s receivables, waste entrusted funds, or neglect to ensure the fulfillment of obligations and other duties of the SVJ). Moreover, if they do not compensate for the damage, they will be personally liable for the unpaid damage to the SVJ's creditors who have not received payment from the SVJ.

Debts of SVJ Members for the Management of the Building and Service Contributions

Membership in the SVJ carries rights and obligations for the unit owner, which are often subject to dispute, most commonly regarding the failure to contribute to the management of the building and land or to pay service contributions related to the use of the unit, as arranged by the SVJ. In such cases, the statutory body of the SVJ is obliged to collect the outstanding contributions and service payments from the delinquent owner, even through court proceedings if necessary.

Enforcement of SVJ Rules for Building and Land Management

Another legal obligation of unit owners is to comply with the rules for the management of the building and land. These rules can be specified in the SVJ’s statutes and further detailed in the house rules. These rules apply not only to the owners themselves but also to tenants, visitors, or other persons granted access to the building by the owner.

The unit owner is responsible for ensuring that the people they allow into the building also adhere to the building and land management rules. The SVJ can also establish reasonable fines for violating the established rules in its statutes. These fines can also become a source of dispute.

Order for the Sale of a Unit of an Owner Violating SVJ Rules

In extreme cases of persistent violation of obligations, the SVJ, with the consent of the majority of unit owners, can request a court order for the sale of the unit of an owner who, despite a written warning from the SVJ, continues to violate their duties in a way that substantially limits or prevents the exercise of the rights of other unit owners.

Disputes Between SVJ and Members Regarding Compensation for Damage

If a unit owner causes damage to the common areas, they are naturally required to compensate for it. Damage may include, for example, costs incurred by the SVJ for extra cleaning or repairs of common areas damaged during a renovation carried out by the owner in their unit.

On the other hand, one could also imagine a scenario where damage is caused to one of the unit owners during repairs to common areas. In this case, the owner is entitled to seek compensation for such damage from the SVJ.

Neighbor Disputes Among SVJ Members

Conflicts between unit owners are also common, especially in cases of "nuisance," where one owner causes excessive disturbance or limitation to another due to activities in their own unit (e.g., noise, smell, smoke, etc.), thereby limiting the neighbor's ability to enjoy their unit. We have contributed to a series of articles on neighbor disputes, which can be read here.

Appeal Against a Decision of the SVJ General Meeting

As mentioned earlier, decisions on the most important matters of the SVJ are made at the general meeting, where all unit owners vote, with each owner having a number of votes corresponding to the size of their share in the common parts of the building and land. If there is an important reason (e.g., when deciding on the election of statutory body members, extensive reconstruction, or when procedural rules for making decisions have been substantially violated), the law allows the outvoted owners and those who could not attend the meeting for serious reasons to appeal the decision within three months of learning about the problematic decision (or when they could have learned about it).

The outvoted owner may also request the court to temporarily prohibit the implementation of the decision until the appeal is decided. If the appeal is successful and the decision of the general meeting has caused damage to the outvoted owner, the owner is entitled to claim compensation from the SVJ – for more information on compensation for damage, please refer to the section on Compensation for Damage.

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