Managing condominium costs upon a sale

The guiding criterion: who owned the unit when the expense was resolved

The basic rule, drawn from article 63 of the implementing provisions of the Italian Civil Code and confirmed by settled case law, is that the payment obligation falls on whoever owns the unit at the moment the assembly resolves the expense, not at the moment the expense is actually paid or an instalment falls due. This means that if the assembly approves a financial statement or extraordinary works before the closing deed, the expense remains the seller's responsibility even if instalments fall due after the transfer of ownership.

Conversely, if the resolution comes after the transfer, the expense falls on the buyer, even if it concerns works planned or discussed earlier. For this reason it is essential to reconstruct the exact dates of the assembly meetings rather than relying only on the invoice date or the manager's payment request.

The seller's two year joint liability under article 63

Article 63, second paragraph, of the implementing provisions of the Italian Civil Code provides that whoever transfers rights over a unit remains jointly liable with the new owner for contributions relating to the current year and the previous one. In practice, for two years after the sale the property manager can also turn to the seller for unpaid instalments that the buyer failed to pay, without prejudice to the seller's right to later recover the amount from the buyer.

This joint liability protects the condominium, it is not a benefit for the parties: it does not remove the internal allocation between seller and buyer based on the resolution date criterion, but it allows the manager to pursue either party in case of arrears. Buyers should therefore check, before the closing deed, the payment status of the condominium fees for that unit, by requesting a statement from the property manager.

Adjustments and instalments: how the parties settle them

During the current financial year, owners pay instalments based on the approved budget; only with the year end financial statement do adjustments emerge, either owed or due as credit. When a sale takes place mid year, it is common practice, and often the subject of a specific clause in the closing deed or in a private agreement between the parties, to split instalments already paid and the final adjustment on a pro rata basis, according to the number of days each party actually owned the unit during the year.

It should be noted that these agreements only bind the seller and the buyer and are not enforceable against the condominium: the resolution date criterion remains valid vis a vis the property manager. It is therefore good practice to include a clear clause in the closing deed on who bears past charges and who takes on future ones, to avoid later disputes between the private parties.

• Instalments paid before the closing deed: normally remain the seller's responsibility, unless otherwise agreed
• Year end adjustment based on a resolution predating the closing deed: seller's responsibility
• Expenses resolved after the closing deed: buyer's responsibility
• Outstanding arrears: verify them with a statement from the property manager before the closing deed

Updating the ownership records and the mandatory notice

Article 1130, number 6, of the Italian Civil Code requires the property manager to keep a register of unit owners. To update it, the seller or the buyer must notify the manager in writing of the new owner's details and the reference of the transfer deed, as required under article 1130, number 6, and the standard operating practice of professional property managers.

Without this notice, the manager legitimately continues to send payment requests to the seller, who remains liable, subject to later recovery from the buyer. Digital condominium management, with software that tracks resolution dates, deadlines and owner records, allows the property manager to update the transfer of ownership quickly and to correctly distinguish the accounting position of seller and buyer, reducing the risk of errors in expense allocation.

Frequently asked questions