Splitting a monetary penalty in a condominium

Splitting a monetary penalty in a condominium depends on who committed the breach. If a single owner breaches the bylaws, the penalty provided by Article 70 of the implementing provisions of the Italian Civil Code falls on him alone. If instead the penalty, for example administrative or tax, hits the condominium for a missed obligation, the cost is normally split among all owners by thousandths (millesimi), unless it stems from the manager's fault, in which case he is personally liable.

Bylaw penalties

The condominium bylaws may provide monetary penalties for those who breach their provisions. Article 70 of the implementing provisions of the Italian Civil Code establishes that, for breaches of the bylaws, the meeting may impose a penalty up to a set amount, increased in case of repeat offence. The sums collected go to the fund the manager uses for ordinary expenses.

This penalty is by definition individual: it hits the owner who engaged in the prohibited conduct, for example the improper use of a common part or the breach of a bylaw prohibition. It is not split among the others, who indeed benefit indirectly because the amount flows into the common cash.

How the bylaw penalty is applied

For the penalty to be lawful, certain conditions must be met:

• The breach must concern a provision actually contained in the bylaws.
• The penalty must be imposed by the meeting with a specific resolution, respecting the majorities.
• The amount must fall within the limits set by Article 70, with any increase for repeat offence.
• The owner must be able to know the charge and put forward his reasons.

A penalty imposed without a resolution, beyond the legal limits or for conduct not prohibited by the bylaws is unlawful and can be challenged by the owner.

Penalties that hit the condominium

Different is the case of penalties the public authority applies to the condominium as such: administrative penalties for breaching rules on systems or safety, tax penalties for omitted or late payment of withholdings and the condominium's obligations as a withholding agent, penalties for failing to carry out mandatory inspections.

In these cases the debt arises with the condominium and, as a rule, is split among all owners by thousandths, like any other common expense. The premise is that the breach is attributable to collective management and not to the personal fault of whoever should have acted.

When the manager pays

The crucial point is fault. If the penalty charged to the condominium stems from the manager's negligence, for example the omitted payment of withholdings, the late fulfilment of a legal obligation or the failure to carry out a resolution, the manager is personally liable and must hold the condominium harmless.

In these cases it would not be right to burden the owners with a penalty caused by the agent's default. The manager must carry out the mandate with the professional diligence required by his role, also in light of the UNI standards on the manager's profile, and is liable for damage arising from his negligence.

The allocation resolution and disputes

When the penalty is to be split among owners, the manager includes it in the allocation with a transparent reason, so that each one understands the origin of the charge. An owner who believes the penalty is attributable to the manager's fault may challenge the resolution charging it to him and ask that the cost remain with the responsible party.

The distinction between a penalty from collective management and one from individual fault is not always clear-cut and may require a case-by-case assessment. Transparency about the origin of the penalty and the chain of obligations is what allows the meeting to decide with full knowledge.

Preventing penalties with orderly management

The best way to avoid the allocation problem is to avoid penalties: meet tax deadlines, schedule mandatory inspections and carry out resolutions promptly. AmministraPro helps keep deadlines and obligations under control and split any penalties, with clear reasons, among the correct parties. The features are described on the /funzioni page and the plans on the /prezzi page.