Destruction of the building and end of the condominium: Art. 1128

A condominium arises with the fractioning of the building, but it can also be extinguished when the building ceases to exist. Article 1128 of the Italian Civil Code governs total or partial destruction of the building, that is its loss through collapse, fire, disaster or other cause. The rule distinguishes three scenarios by the severity of the damage: total destruction, destruction of at least three quarters of the value and destruction of a lesser part. Each corresponds to different rights and decisions on reconstruction, sale and the fate of the owners.

Total or three-quarters destruction: a sale may be requested

If the building is destroyed entirely or for a part representing three quarters of its value, each owner may request the auction sale of the land and materials, unless otherwise agreed. It is the logical consequence of the loss of the asset that held the condominium together: without the building, or without a portion of prevailing value, the functional link between exclusive units and common parts breaks and forcing the continuation of the common ownership no longer makes sense. The individual owner can therefore trigger the liquidation of the land and residual materials.

The three-quarters-of-value threshold is the balance point chosen by the legislator: below it the interest in preservation prevails, above it the freedom of each party to leave the common ownership through the sale prevails. The possibility of a different agreement among the owners remains, and they may agree to reconstruction even in case of serious damage.

Destruction of a lesser part: the meeting decides

In the case of destruction of a part below three quarters of the value, the owners' meeting resolves on the reconstruction of the building's common parts, and everyone is bound to contribute in proportion to their rights over those parts. Here preservation prevails: the building is still recoverable and the community decides how to restore it. The cost of reconstructing the common parts is shared according to proportional values, like any condominium expense concerning common assets.

• Total destruction: each owner may request the auction sale of land and materials
• Destruction of at least three quarters of the value: same right of sale, unless otherwise agreed
• Destruction of a lesser part: the meeting resolves on reconstruction of the common parts
• In any case a different agreement among the owners is preserved

Insurance indemnity goes to reconstruction

Article 1128 provides that the indemnity paid for insurance relating to the common parts is intended for their reconstruction. If the condominium has taken out a policy on the building, the compensation received is not freely available but bound to restoring the damaged common parts. It is a rule that strengthens the interest in preserving the building and protects those who want to reconstruct.

The owner who does not want to take part in reconstruction

Whoever does not intend to take part in the reconstruction of the building is bound to transfer to the other owners their rights, including over the parts of their exclusive property, according to the valuation that will be made, unless they prefer to transfer them only to some of the owners. In this way the reconstruction project is not blocked by a single party's dissent: whoever does not want to contribute leaves, transferring their rights against payment of the estimated value. Case law also recognises each owner's power to reconstruct the common parts indispensable for the enjoyment of their unit, even in case of destruction below three quarters.

Extinction of the condominium after destruction

When the building is entirely destroyed and no reconstruction takes place, the condominium is extinguished: with the building gone, there are no longer common parts serving exclusive units and the condominium figure has no object. What remains, typically the land, returns to being ordinary co-ownership among the former owners, with each party's right to request division or sale. Closing the management in an orderly way requires liquidating balances, settling credits and debts and sharing the residue among the owners.

The closure of a condominium, like its birth, must be managed with clear accounts. With AmministraPro the administrator keeps the complete accounting history, reconstructs balances, credits and debts and produces the reports needed to settle the liquidation among the owners. The accounting and reporting features are described on the /funzioni page and the plans on the /prezzi page.