When living in close quarters, like apartment buildings, respecting others’ rights is essential. Balancing exclusive apartment ownership with shared responsibility for common areas is inherently complex. To address this, Chapter 224 of the Real Estate Law defines property rights, management standards, and registration protocols for jointly owned buildings.
A “jointly owned building” generally includes structures with five or more units or, in some cases, those with fewer units upon approval. It can also encompass separate buildings on a single property or spaces with exclusive rights, such as parking spots.
Before 1993, ownership shares in common property were undefined. Now, shares are determined either by historical property values or by the developer for newer buildings, ensuring clarity for buyers.
Mandatory insurance for jointly owned buildings is a key requirement under the law.
The management committee must insure against fire, lightning, and earthquakes, ensuring coverage for replacement value. Additional risks can be insured with majority owner approval. Owners are required to share these expenses, which are handled by the committee.
The law also mandates that insurance proceeds be used for repairs in cases of partial or total destruction. Importantly, these policies cannot overlap with other insurance except as explicitly allowed by law.
The management committee holds a legal obligation to secure appropriate insurance, ensuring both compliance and protection for all residents.
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