Practical guide
Managing a newly built condominium
A newly built condominium works differently from an established one: the developer has usually drafted a set of bylaws and provisional ownership share tables, most systems are still under warranty, and the accounts start from zero with no prior budgets to refer to. Whoever manages the property at this stage must check the documents inherited from the developer, properly convene the first meeting, set up a clear chart of accounts from the very first financial year, and keep track of the warranties covering the common systems. The choices made in these first months shape the management of the building for years: incorrect ownership share tables or warranties not claimed in time turn into costly disputes later on. This guide walks through the operational steps in the order they should be tackled.
The developer's bylaws and provisional ownership share tables
In newly built condominiums the bylaws are often attached to the individual purchase deeds and drafted by the developer before the units are sold: these are contractual bylaws, binding on every buyer because they are referenced in the deed, and they can only be amended with the majorities set out in article 1136 of the Italian Civil Code, or unanimously if they contain contractual clauses such as restrictions on ownership, use of units, or easements.
The ownership share tables attached by the developer are often provisional and should be checked: article 69 of the implementing provisions of the Civil Code allows revision when the tables are wrong due to an error in the original calculation, or when the conditions of a unit have changed appreciably. In the first months of the condominium's life it is good practice to have the tables verified by a qualified technician: an error in the shares affects every subsequent cost allocation, including the most significant extraordinary expenses.
If the developer's bylaws have not yet been approved at a meeting, or contain doubtful clauses, they should be placed on the agenda of the first meeting, distinguishing the regulatory parts (amendable by majority) from the contractual ones (which require the consent of every owner).
Warranties on the systems and common parts
A newly delivered building carries several distinct warranties that need to be tracked from day one: the contractor's ten year warranty for serious construction defects under article 1669 of the Civil Code, the seller's warranty for defects and non conformities on individual units, and the commercial warranties on individual systems, such as the elevator, the heating plant, the electrical systems and fire prevention systems, issued by the respective installers.
It is useful for the manager to assemble, from the very first day, a technical file for the building containing test certificates, conformity certifications, system manuals and warranty deadlines: prompt notice of a defect is often a condition for keeping the coverage valid, while a defect discovered months later and left undocumented becomes difficult to contest with the developer.
The routine maintenance to set up at this stage mainly concerns the mandatory periodic checks: the elevator system under the applicable regulations, the electrical system, and fire safety classification where required for the building. Scheduling these checks from the first year prevents forgotten deadlines from piling up on top of construction defects that have not yet been fixed.
Convening and running the first meeting
The first meeting of a new condominium typically has a denser agenda than usual: appointment of the manager if not already designated by the developer, review or approval of the bylaws, formal acknowledgment of the ownership share tables, opening of the dedicated condominium bank account required under article 1129 of the Civil Code, and approval of the first expense budget.
The meeting must be convened following the ordinary rules of article 66 of the implementing provisions: written notice to all owners with at least five days' notice, stating date, time, place and agenda. In newly formed condominiums it is worth also including on the agenda a briefing on the remaining warranties and on the building's technical file, so that every owner understands what is covered and for how long.
An often underestimated aspect concerns the condominium register required under article 1130, number 6, of the Civil Code: when a condominium has just been populated is the easiest moment to collect complete and accurate data on every unit, avoiding having to reconstruct it later once buyers have already changed.
Setting up the accounts from the first financial year
With no prior budgets to rely on, the first financial year must be set up with particular care: a chart of accounts is needed that clearly distinguishes ordinary from extraordinary expenses, the mandatory registers required under article 1130 must be opened (the register of owners, the register of minutes, the register of appointment and revocation of the manager, and the accounting register), and allocation criteria must be set based on the verified ownership share tables.
The first budget must account for the typical start up costs of a new building: activation of shared utilities, initial scheduled maintenance, and possibly a reserve for extraordinary expenses tied to defects not covered by warranty. It is prudent to set up a reserve fund from the outset, even a modest one, to handle urgent expenses without having to convene a special meeting for every unforeseen cost.
A condominium management software designed for the start up of new buildings, such as AmministraPro, allows ownership share tables, mandatory registers and the chart of accounts to be set up from day one, keeping track in a single place of warranty deadlines and periodic system checks, so nothing covered by the developer gets lost from view.
Frequently asked questions
Are the developer's ownership share tables automatically valid?
Not necessarily. They serve as the basis for cost allocation pending any revision, but article 69 of the implementing provisions of the Civil Code allows them to be corrected when they are wrong due to an error in the original calculation, or when the conditions of a unit have changed appreciably. In the first months of the condominium's life it is advisable to have the tables checked by a technician, because an initial error affects every future cost allocation.
How long does the contractor's warranty last for serious defects in the building?
Article 1669 of the Civil Code provides a ten year warranty from the contractor for the ruin of the building or serious construction defects that compromise its stability, safety or fitness for use, provided the defect is reported within one year of its discovery. It is essential to document every defect promptly, because a late report can jeopardize the ability to enforce the warranty.
Who convenes the first meeting in a newly formed condominium?
If the developer has already appointed a manager, it is the manager's task to convene the first meeting following the ordinary rules of article 66 of the implementing provisions of the Civil Code. In the absence of an appointment, the meeting can be convened at the request of one or more owners representing at least one sixth of the building's value, under article 66, in order to appoint the manager and take the other decisions needed to start managing the property.
Is it mandatory to open a dedicated condominium bank account right away?
Yes. Article 1129 of the Civil Code requires the manager to route any sums received from owners or third parties, for any reason, through a bank account held in the condominium's name, separate from the manager's own personal assets. In a new condominium this account should be opened from the very first payment received, so the accounts are traceable and kept separate from the start.
Is it worth using management software from the condominium's first year?
Yes, this is the most convenient moment to start: since there is no history of prior budgets to recover, software such as AmministraPro makes it possible to set up ownership share tables, mandatory registers, the chart of accounts and warranty deadlines in a structured way from day one, preventing important information about the new building from being lost in the early years of management.
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