Practical guide
Managing the accounts when the manager changes
A change of building manager is one of the most delicate moments in managing a residential building: if the accounts are not handed over in an orderly way, errors, wrong balances or disputes can drag on for months. Italian law does not regulate the handover procedure in detail, but article 1129 of the Civil Code requires the outgoing manager to hand over without delay all the documentation in their possession. This guide covers how to prepare the partial financial statement at handover, which documents must be transferred, how balances are checked, and who is liable for irregularities discovered after the change, with attention to management continuity.
The partial financial statement when the appointment ends
When a manager's term ends mid year, whether through resignation, removal or non renewal, they are required to prepare a partial financial statement covering the period actually managed, from the start of the financial year to the date of cessation. Handing over the bank statement alone is not enough: the partial statement must follow the same structure as the annual one, with the accounting register, financial summary and explanatory note, as required by article 1130 bis of the Civil Code.
This step matters because the meeting that appoints the new manager, or the first useful meeting thereafter, must be able to approve or challenge the work of whoever managed the building up to that point. A well prepared partial statement protects the outgoing manager from future disputes and gives the incoming one a solid starting point.
Documents to hand over to the new manager
Article 1129 of the Civil Code establishes that, on leaving the role, the manager must hand over all documentation relating to the building and to individual owners, along with any remaining cash funds. The handover should specifically include:
the mandatory registers (owners' registry, meeting minutes, appointment and removal of managers, accounting records), bank and current account statements, documentation on ongoing works and existing supplier contracts, and a detailed situation of receivables from owners in arrears and payables to suppliers.
It is good practice to draft a handover report signed by both parties, listing precisely what is transferred and in what condition: this significantly reduces the risk of later disputes over missing or incomplete documents.
Checking the balances: continuity between old and new management
The most delicate moment is verifying the cash and bank balances on the day of handover. The new manager should check that the balance of the building's current account matches the figure shown in the last partial statement, and that every subsequent transaction is traceable. Any discrepancy should be flagged immediately, in writing, before formally accepting the appointment: once accepted, separating pre existing errors from new ones becomes much harder.
Practical support at this stage comes from management software that keeps the accounts always up to date and traceable in real time: tools such as AmministraPro allow the accounting register, receivables and payables position, and linked bank movements to be exported independently, making the handover faster and more transparent for both the outgoing and incoming manager.
Liability and communication to owners
The outgoing manager remains liable for management up to the actual date of cessation, while the new manager is liable only for events after their appointment, unless they knowingly accepted an irregular financial situation without raising objections. For this reason it is important that the incoming manager formalize in writing any reservations about the data received before proceeding with ordinary management.
It is also advisable to promptly inform all owners of the change, with a communication indicating the effective date of the new appointment, the new contacts for payments and requests and, if necessary, updated bank details: this prevents payments being mistakenly made to the former manager or to accounts that are no longer active.
Frequently asked questions
Must the outgoing manager still prepare a partial financial statement if only a few months remain before year end?
Yes. The duty to account does not depend on how much of the financial year remains but on the fact that the appointment has actually ended: the manager must account for every euro managed, even if the period covered is short. Otherwise the meeting has no way to verify the correctness of the management carried out up to that point.
What happens if the outgoing manager fails to hand over the documentation?
Refusal or unjustified delay in handing over documentation, which is a duty under article 1129 of the Civil Code, exposes the outgoing manager to liability and can be reported to the courts. In practice, the building or the new manager can also send a formal written request, which serves to document the failure to comply.
Can the new manager be held liable for errors made before their appointment?
Generally no, because management liability is tied to the period the appointment was actually held. However, the incoming manager can become liable if, having noticed clear irregularities in the documents received, they fail to flag them and continue management without reservations, effectively endorsing the prior situation.
How are the handed over balances verified?
The cash and bank balance shown in the last partial statement is compared against the actual bank statements as of the same date, checking that every receivable from owners and payable to suppliers is documented. Building management software with accounts always kept up to date, such as AmministraPro, reduces the time needed for this check because the data is already tracked and available for independent review.
Does the outgoing manager's partial financial statement need meeting approval?
Yes, the partial statement must be submitted for approval at the meeting, usually the same one that appoints the new manager or the first useful meeting thereafter. Approval formally closes out the outgoing manager's tenure and forms the basis on which the new manager starts their own accounting.
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