Condominium in fieri: the building under construction and its rules

A condominium in fieri is the situation that arises when a building is still under construction or not fully completed, but the developer has already sold at least one unit to a buyer other than itself. At that moment exclusive properties already transferred and common parts intended to serve them coexist, and condominium rules begin to apply even if the building is unfinished. No formal deed of constitution is needed: the condominium arises by the mere fact that ownership has been fractioned.

When the condominium arises if the building is unfinished

Italian case law consistently holds that a condominium arises automatically the moment the original sole owner, typically the building firm, transfers the first unit to another party, provided common parts linked by a relationship of service to the exclusive units exist. The building need not be completed, nor must owners be aware that they form a condominium. The coexistence of at least two owners and of common assets serving the units is enough.

The typical case of a condominium in fieri is the off-plan purchase: the developer sells apartments still to be built or under construction. As sales are completed, the pool of owners grows, while the developer remains an owner for the still unsold units. As long as it remains the sole owner of the whole building, however, there is no condominium but single ownership.

Common parts are identified in the first sale

The decisive moment for understanding what is common and what remains the developer's is the first deed of sale. Article 1117 of the Italian Civil Code presumes common, unless the title states otherwise, the land on which the building stands, the foundations, the main walls, the roofs and terraces, the stairs, the main doors, the courtyards and the systems up to the branching point toward the units. This presumption can be overcome only by a clear and specific reservation of ownership contained in the first deed that breaks up the single ownership.

So-called developer reservations are frequent, for example over the flat roof to build a future addition or over an area intended for parking. To be valid they must derive from a suitable title and be enforceable against later buyers. A generic clause or one placed only in the regulation is not enough to remove an asset from common ownership if that asset is by nature intended for common use.

Who administers the condominium during construction

In the early phase administration is often in fact in the hands of the developer, who remains the majority owner of the unsold units. This does not eliminate the rights of the first buyers, who may take part in decisions on common parts in proportion to their thousandths (millesimi). As the number of owners grows, the ordinary obligations arise: appointing an administrator becomes mandatory when owners exceed eight, and a regulation when they exceed ten.

• The developer votes for the units still its own, but cannot impose choices harmful to the other owners
• The first buyers have the right to be summoned and to consult documentation on common parts
• On the sale of the last unit the developer leaves the condominium and any position of control ceases
• Decisions on already completed common parts follow the ordinary majorities of Article 1136

Expenses during the in fieri phase

While the building is under construction, two categories of cost must be distinguished. Works needed to complete the building according to the sales contract remain the developer's responsibility, since they were promised to buyers. Costs of managing and maintaining common parts already delivered and in use, however, are shared among all owners, including the developer for unsold units, according to millesimi. A common utility already active, cleaning of a completed entrance hall or maintenance of a working lift fall within ordinary condominium management.

It is advisable that the administrator, or whoever acts as one in this phase, keeps separate and transparent accounts, so as not to confuse completion costs owed by the seller with condominium costs owed by everyone. Clarity from the start prevents most disputes between first buyers and the firm.

Toward a fully operating condominium

Once works are completed and all units sold, the condominium in fieri becomes a fully operating condominium, with the obligation of a dedicated bank account, an annual report and compliance with assembly quorums. The handover from the developer to the administrator appointed by owners must include technical documentation, the millesimi tables, any contractual regulation drawn up and the history of relations with utility suppliers.

Managing this transition in an orderly way is easier with digital tools that keep together the owners register, tables and transactions. With AmministraPro the administrator structures the new condominium's register from day one, imports units and millesimi tables and sets up accounting that separates completion costs from condominium expenses. Available features are described on the /funzioni page and the plans, sized on the number of managed owners, on the /prezzi page.