Guide to the New Law

 

Law on Building Management and Maintenance (in force from 1 January 2025)

The new Act introduces clearer roles for co-owners and building managers, strengthens maintenance standards and oversight, and emphasizes long-term investment, energy renovation, safety and financial planning.

Community of Co-Owners (Articles 7–8)

• A legal entity (association form) composed of all owners of individual units.
• Assets: reserve fund account.
• Internal relations governed by a Co-ownership Agreement (equated to an association statute).
• Can acquire rights/obligations, sue and be sued in its own name.
• Name format: “Building + address”; for multiple entrances/sections, the address is agreed by co-owners.
• Non-taxable on its basic activity; taxable only if it performs business activities in addition.

Registry of Communities (Article 9–10)

• Public electronic registry, kept by the state geodetic/cadastre authority.
• Holds data on communities, managers, buildings, units, owners, reserve payers, areas, warnings for house-rule violations, the Co-ownership Agreement and subsequent decisions.
• Manager files the electronic application (ZIS system). Changes must be reported within 15 days of becoming known.
• If not yet registered, the manager must apply within 90 days of taking over management.

Registry of Building Managers (Articles 11–12)

• Public electronic registry, kept by the State Geodetic Administration.
• Manager applies electronically via ZIS; changes must be reported within 8 days.
• New manager must be registered within 90 days of taking over.

Separation / Merger / Termination (Articles 13–16)

• Separate communities may be formed for distinct functional units/buildings on the same parcel (simple majority of the unit splitting off).
• Communities splitting off assume rights/obligations proportionally.
• Communities on one parcel share common-area costs proportionally and are jointly liable to third parties.
• Liability: the community (and jointly all co-owners and the manager) is liable for damage from poor maintenance; the manager may be exonerated if they proposed necessary works in writing and co-owners rejected them.
• Termination: e.g., only one owner remains or merger; manager files termination in the Registry within 8 days.

Proceedings before Authorities (Article 17)

• The manager or a duly authorized proxy represents the community in all proceedings. Venue: court where the building is located.

Common Parts and Installations (Article 18)

Defines the building elements deemed common parts unless the agreement provides otherwise (structure, roof, façades incl. windows/doors as façade elements, chimneys, risers, shared installations, lifts, lightning protection, etc.).
Windows within individual units are not common parts and must be maintained by each owner.

Preservation Rules & Subsequent Works (Article 20)

• In pre-1965 masonry buildings (or without RC ties), no chasing for installations in load-bearing walls; no installation cabinets in such walls.
• No enclosing/roofing of balconies/loggias/terraces; exceptions only if fully compliant with construction/heritage rules and uniform for the entire building.
• No HVAC/RES/antenna devices or visible cabling on street façades; exceptionally allowed on balconies/loggias/terraces if not visible from public space. Cosmetic covers that cause visual clutter are generally not allowed on street façades.
• Replacement façade elements must match geometry and color of originals.
• EV charging locations must follow fire protection regulations.
• All works must comply with construction and spatial planning rules.

Support Schemes

• Lifts & Accessibility (Art. 21): State co-finances 1/3 of costs for lift/access devices in existing residential/mixed buildings meeting cumulative conditions (ownership thresholds, floors or disabled occupant, main design prepared, simple majority decision, financing share secured).
• Façade Program (Art. 22): After Government program adoption, façade works co-financed 1/3 + 1/3 (state + local unit) for buildings in historic ensembles, with main design, majority decision, and funds secured.

Maintenance Categories

Regular Maintenance (Article 24)

Requires 50% co-ownersRecurring activities to keep common parts functional and compliant (inspections, testing, servicing, cleaning, minor replacements/repairs, painting, mailbox and lighting upkeep, etc.).

Emergency Repair (Article 25)

Actions to immediately remove danger to life/health/property or restore essential living conditions (e.g., gas/electrical failures, burst/blocked water/sewage, fire-safety systems, roof damage/water ingress, structural instability, lift failures).
Costs borne by the community and proportionally by all co-owners.

Necessary Repair (Article 26) — Requires >1/3 consent

Actions to permanently remove danger (e.g., roof/structural reconstruction, insulation, landslide remediation).
Manager must obtain >1/3 ownership consent (value surface or registered shares). If the manager pays upfront, they have a statutory lien on each unit up to the recoverable amount. Local government may step in if the manager fails within 90 days; costs are recoverable from the community.

Investment Maintenance (Article 27) — Requires 80%

Upgrades exceeding one year’s reserve contributions (improvements under property law). 80% majority required.

Reserve Fund (Articles 28–29)

• Funds for maintaining common parts and managing the building; calculated by value surface / ownership shares.
• For certain business premises, short-term rentals, or high-occupancy rentals, reserve may be up to 2× the base apartment rate.
• Different cost-sharing keys allowed by majority or unanimous consent depending on cost type.
• Minimum annual amount: 0.54% of the construction benchmark price per m² (published in Narodne novine). Monthly amount ≥ 1/12 of that. If no annual program, owners must pay 5× the last adopted reserve (not below the legal minimum).
• Funds cover regular, emergency/necessary repairs, improvements, insurance, manager and representative fees, tools/consumables, shared utility costs, debt service, legal costs, etc.

House Rules (Articles 31–32)

• Mandatory general and special rules; owners are responsible for their users/visitors.
• Minister issues General House Rules (noise limits, waste, quiet hours, etc.). Co-owners may add building-specific rules via the agreement.
• Violations can be documented; deemed established when 50% of co-owners decide so. Manager must issue a warning within 10 working days upon request signed by 50% of co-owners. Persistent violations can lead to fees €50–€500 (if provided in the agreement) and records in the public Registry (deleted after 2 years).

Business Activities in Apartments (Article 33)

• Quiet activities (no audible noise/vibration) are allowed without consent.
• Other registered activities require change of use under planning rules and 2/3 consent of co-owners plus consent of all directly adjacent neighbors (shared walls/floors/ceilings).
• Consents are for a fixed term ≥ 5 years, may be revoked for repeated house-rule breaches.

Short-Term Rentals (Article 34)

• Require 2/3 consent plus all adjacent neighbors’ consent; owner must prevent unconsented use; consents term ≥ 5 years; revocable for repeated breaches.

High-Occupancy Rentals (Article 35)

• For more than four unrelated adults, require 2/3 consent plus all adjacent neighbors’ consent; similar duties and revocation rules.

Co-owners’ Meeting & Decisions (Articles 36–40)

• Co-ownership Agreement must cover shares, reserve management, representation, house rules, use of common areas, etc.; deemed concluded when signed by a simple majority of co-owners.
• Meetings (Article 37) are convened by the representative (or by owners holding specified thresholds depending on building size, or by the manager). Notice at least 5 days in advance and posted on the building notice board (plus mail/email per majority agreement). A minutes document is mandatory.
• Frequency (Art. 38): at least once per year (annual report, next year’s program, multi-year plan).

 

Decision-making (Art. 39):

• Simple majority for routine management (electing/changing representative/manager, programs, reserve level, insurance, energy renewal, EV charging infrastructure, façades, lifts, accessibility, green/blue measures, water saving, use of common parts, loans, legal representation, etc.).
• Qualified majority for investment maintenance, repurposing common to special when all remain co-owners proportionally, additions/annexes, long-term lease (>1 year), creating liens for improvements.
• Exceptions: for necessary-repair-related reserve increase—>1/3 consent suffices; consents for non-quiet activities, STR, high-occupancy—2/3; electing a non-resident representative—2/3.
• Signature collection (Art. 40): If a meeting cannot be held, decisions may be adopted by collecting signatures (or email with identity proof or qualified e-signature). Binding for all; must be posted/emailed on request.

Owners’ Obligations (Article 41)

• Comply with laws, the agreement, house rules, and decisions; maintain their unit; provide changes of occupancy/tenants/purpose within 15–30 days; allow access for maintenance/emergency works; provide contact address; report hazards; cooperate with approved projects; refrain from damaging works. Persistent disruption of meetings allows measures (including ceasing to invite the disruptor and police presence if needed).

Representative of Co-Owners (Articles 42–46)

• Typically a capable resident owner or close relative elected by simple majority; may also be a third person residing in the municipality (2/3 majority).
• Key duties: represent owners, convene and chair meetings, coordinate programs with the manager, deliver decisions/data to the manager, supervise the manager, produce a short annual report by 1 February, sign cleaning contracts, notify unplanned expenses > €2,000 (excl. VAT), inspect account transactions, etc.
• May have a monthly fee (Article 44); gross neglect can lead to repayment of 1–12 months of fees and removal.
• Deputy may be appointed (Article 46).
• Compulsory representative may be appointed by the manager if owners fail to elect one after warning; must meet education/residency/clean-record conditions.

Building Management (Articles 47–54)

• Owners must appoint a manager; investor must do so within 30 days of the occupancy permit (unless sole owner remains).
• Management Agreement (Art. 48) sets parties, decision data, identifiers, duties, fees, reserve handling, building description, unit list with shares, delivery rules, termination, etc.
• Manager (Art. 49–53): legal/natural person registered for property management; acts for and on behalf of owners, handles reserve per adopted programs/agreements, represents owners before authorities. Must:
• Open separate accounts per building.
• Ensure 24/7 emergency capacity and arrival within 3 hours unless circumstances prevent it.
• Perform required regular/extraordinary inspections with the representative.
• Propose appropriate reserve amount; keep owner records updated; allocate/collect costs; enforce arrears; pay common expenses; draft annual and multi-year programs (by 15 Nov and 31 Dec respectively); file for co-financing projects; deliver annual management report by February (itemized reserve income/expenses and heating mode per unit); produce cash/AR/AP statement with the representative; provide documents within 15 days upon request; inspect building at least annually for fundamental requirements; file Registry applications and house-rule warnings.
• Obtain at least three comparable bids for works > €2,500.
• On change of manager: prior manager must hand over reserve funds within 30 days and all documents within 30 days.

Municipal Inspectors (Article 56)

• Empowered to oversee compliance; decisions appealable to the county authority (Zagreb: central state body). Appeals do not stay execution.

Offences & Fines (Articles 57–59)

• Manager offences: fines from €700–€5,500 for legal entities (less for individuals), for failures such as Registry filings, emergency response within 3 hours, inspections, records, proposals, reports, warnings, handover, etc. Prior written warning precedes fines.
• Owner offences (Art. 58): €1,000–€5,500 (individual) or €2,000–€10,000 (legal) for denying access for maintenance/emergencies, illegal works (e.g., enclosing balconies, devices on façades), etc. Community fined €1,000–€2,000 if the building is not insured.
• Contractor offences (Art. 59): €5,500–€10,000 for companies (plus responsible person €1,000–€5,500; sole traders €1,000–€5,500) for prohibited works on façades/structures.

Transitional & Final (Articles 60–67)

• Registries established within 6 months.
• New Co-ownership and Management Agreements must be concluded within 2 years.
• Existing managers continue but must align within 90 days; deliver records of contracts to local government within 90 days; supply new house rules within 180 days and install a fixed notice-board plate in each building; apply for Registry entries within 6 months of registry setup.
• Deadlines for existing users of business/STR/high-occupancy rentals to obtain consents: 5 years (business & STR) and 1 year (high-occupancy).
• Litigation substitution: pending cases may replace parties with the Community of Co-Owners after registration.
• Reserve account rights/obligations transfer to the Community upon its establishment.
• Government to issue lift/façade co-financing rulebooks within 6 months; Minister to issue Registry rulebooks and General House Rules within 90 days.