Transparency and correct management are essential to avoid disputes and guarantee the smooth functioning of the condominium community. However, sometimes these premises can fail, making it necessary to take actions such as the cancellation of the condominium statement. The invalidity of a condominium statement refers to the condition in which the financial statement presented by a condominium administrator is considered legally invalid. There are various reasons that can compromise the validity of the document and, consequently, render the condominium resolutions connected to it ineffective. Let’s see the most common ones, as well as the terms and procedure to follow to invalidate it.
Normative requirements
In Italy, the discipline of the condominium statement is mainly regulated by articles 1130, 1130-bis and 1135 of the Civil Code, which establish the duties of the administrator regarding the management and presentation of the annual report, as well as outlining some prerogatives of the assembly of condominium. In particular, according to what is stated in article 1130, the administrator is required to “draw up the annual condominium management report and convene the assembly for its approval within one hundred and eighty days”. Article 1130-bis also establishes that “the assembly can also appoint, in addition to the administrator, a condominium council made up of at least three condominiums in buildings with at least twelve real estate units. The council has advisory and supervisory functions”.
Causes of nullity
Among the most common reasons why a condominium statement can be declared null and void, we find the lack of clarity and transparency: a statement must be clear and understandable for all condominium owners; if it presents serious gaps, ambiguities or does not respect the principles of transparency, it could be declared null and void; Even the incorrect or incomplete accounting recordssuch as omissions of significant expenses or income, may be grounds for cancellation.
Another reason, the violation of the law or of condominium regulation. The report must comply with the rules established by the Civil Code and the condominium regulations: any violation, such as the absence of the report on ordinary and extraordinary management, or the lack of supporting documents, can lead to nullity. Finally, if the statement is not approved correctlyor the approval resolution is tainted by irregularities, the report could be considered null, as well as for the presentation of false datawhether by mistake or intentionally.
Challenge procedure
If a condominium owner believes that the statement is invalid, he can contest it with a request for clarifications and corrections, i.e. asking the administrator to provide clarifications and correct any errors; if the administrator’s explanations are not satisfactory, it is possible to request the convening of aextraordinary assembly to discuss the report. As a last resort, a condominium owner can contact the court to request the cancellation of the statement and related resolutions. In these cases it is advisable to seek the assistance of a lawyer specialized in condominium law.
Even when it is believed that the statement is valid, the condominium owners can still request clarifications or propose changes before final approval. It is important to remember that, once approved by the assembly without procedural defects, it becomes a lot difficult to challenge the document. Any disputes must be based on concrete and legal reasons.
Timings
The Civil Code provides, in article 1137, precise times for challenging condominium resolutions.
In general, condominium owners have 30 days of time from the date of the resolution (or from the date on which they become aware of it) to appeal the decision. After this period, in the absence of obvious defects of form or substance, the statement can no longer be contested.