Foreclosed Unit: Who Votes at the Condominium Meeting

The foreclosure of a unit does not deprive the debtor of ownership: until the forced sale and the transfer decree, the debtor under enforcement remains the owner of the asset. Consequently, as a general rule, they keep the right to attend and vote at the meeting. The situation changes when the enforcement judge appoints a judicial custodian with administration powers: in that case the acts of managing the property, and with them attendance at the meeting for ordinary administration, belong to the custodian. Distinguishing ownership from administration is the key to understanding who votes.

Foreclosure does not transfer ownership

Foreclosure is the act by which a debtor's asset is bound to satisfy the creditor, but it does not bring about its transfer. The owner under enforcement cannot validly dispose of the asset to the detriment of the proceedings, yet remains the owner for all purposes until the property is sold and transferred to the successful bidder by the enforcement judge's decree. Before that moment there is no new owner: there is a foreclosed asset, but the owner is still the debtor.

The vote of the debtor under enforcement

Since the voting right follows ownership, the debtor under enforcement ordinarily keeps standing to attend and vote at the meeting for their unit. Foreclosure, in itself, does not exclude them from the condominium nor suspend their right. They also remain obliged to contribute to common expenses in proportion to the thousandths (millesimi), exactly like any other owner. The pendency of enforcement proceedings does not relieve them of condominium charges and does not cancel their participation rights.

Appointment of the judicial custodian

The picture changes with the appointment of a judicial custodian. In real estate enforcement proceedings the judge entrusts custody of the foreclosed asset to a person charged with preserving and administering it in the interest of the proceedings. Acts of ordinary administration relating to the property belong to the custodian. When custody is entrusted to a professional with management powers, it is for them to handle relations with the condominium for current management, attending the meeting and voting on matters of ordinary administration concerning the unit in custody.

Who votes, in concrete terms

To find your bearings, it helps to keep this operational distinction in mind:

• Until a custodian with administration powers is appointed, the debtor under enforcement votes, remaining an owner
• After the judicial custodian's appointment, for the unit's ordinary administration attendance and the vote belong to the custodian
• Decisions exceeding ordinary administration may require authorisation from the enforcement judge
• Only with the transfer decree to the successful bidder does a new owner arise, who from that moment votes for the unit

The manager must therefore check the state of the proceedings: if aware that a custodian has been appointed, they must convene the custodian for current management and not the debtor, to avoid defects of notice.

Condominium expenses during enforcement

Condominium expenses accruing on the foreclosed unit remain due. Before the sale the obligation falls on the debtor owner; the custodian, in administering the asset, pays the current charges from the proceedings' resources, according to the judge's directions. With the forced sale the successful bidder takes over, for whom the joint-liability principles set by Article 63 of the implementing provisions of the Italian Civil Code also apply for the contributions of the current and previous year. The condominium has an interest in filing its claims and following the course of the proceedings.

Notice and minutes

A manager aware of the custodian's appointment must address the notice of meeting to them for matters of ordinary administration of the unit and record their attendance in that capacity in the minutes. If unaware of the custodian, the manager convenes the owner shown in the records. It is good practice for the custodian to promptly notify the manager of their appointment and the limits of their powers, so as to avoid uncertainty about who should be convened and who may validly vote.

Following the status of units, distinguishing owner, custodian and any successful bidder, requires an orderly, up-to-date register. A management system such as AmministraPro lets you note ongoing proceedings, indicate to whom notices should be addressed and track claims against the unit, so as to manage real estate enforcement situations too with precision. The features are on the funzioni page and the plans on the prezzi page.