Construction of co-owned properties

1. Construction under the quid pro quo system (Article 1)

Co-owners of at least 65% of the plot or land that can be built on in accordance with the law have the right to request in court that construction be permitted under the compensation system, if there is an unavoidable need or obvious benefit for all co-owners. Construction under the compensation system may also be undertaken by a co-owner.

If there is a building on the plot, reconstruction is permitted provided that the building has been legally classified as demolishable, dangerous, or dilapidated, or if, due to age or significant damage, its maintenance is unprofitable for all co-owners. The same applies if the maintenance of the existing building is unprofitable because the permitted building coefficient is not exhausted. If additional construction is possible and advantageous, up to the exhaustion of the building coefficient, the court may be requested to approve such additional construction under the same conditions.

2. Drafting and regulation of co-owners’ relations or amendment thereof (Article 9)

If there is already separate ownership by floor or apartment, but no regulations governing the relations between co-owners have been drawn up, a majority of at least 60% of the co-owners is entitled to request, by way of judicial action, in accordance with the provisions of the preceding articles, that regulations be drawn up, if necessary to define the relations between the co-owners. Similarly, with a majority of at least 65% of the co-owners, the regulations may be supplemented or amended where there are deficiencies that prevent the operation of the co-ownership or the use of the separate properties in accordance with the purpose of the property.

3. Amendment of the deed of establishment of floor ownership and apartment building regulations – Restrictions on amendment (Supreme Court decision no. 683/2014)

“According to Article 4 § 1 of Law 3741/1929, co-owners are permitted to regulate, by means of a special agreement requiring the consent of all parties, the rights and obligations of co-ownership, establish general meetings, and grant a specified majority the right to take, in the common interest, any decision relating to the maintenance, improvement, and use of the common parts of the property. Furthermore, Article 13(i) of the same law stipulates that any agreement regulating or altering the rights and obligations of the owners must be made by notarial deed and registered in the register of deeds. Finally, Article 9 of Law 1562/1985 stipulates that, at the request of at least 65% of the co-owners, the court may allow the completion or amendment of the Regulations when there are deficiencies that prevent the operation of the co-ownership.

From the combination of the provisions of the above laws, the first of which remains in force even after the introduction of the Civil Code (Article 54 EISNAK), it follows that the amendment of the deed of establishment of floor ownership and the regulations of the apartment building may be made a) by agreement of all co-owners, which must be notarized and transcribed, b) by court decision, when requested by co-owners representing 65% and c) by decision of the General Meeting of co-owners, taken by majority vote, if such a possibility is provided for in the Regulations.

Specifically, with regard to the latter case, it is possible to assign to the General Meeting of co-owners, under certain conditions and by a specified majority, the right to amend specific terms of the Regulations. In this case, even if the assignment made by the Regulations is unlimited, the amendment by the majority cannot affect the rights of the (minority) co-owners that exist under the law, the establishment of floor ownership, or the regulations, because Article 4 § 1 of Law 3741/1929 expressly limits the rights that the unanimous vote may assign to a certain majority only to decisions concerning the maintenance, improvement, or use of the common parts and which are taken in the common interest. Thus, it is not permitted to amend, by a majority of the co-owners, the percentages of participation of separate properties in the common expenses, nor may certain properties be exempted from such expenses, nor may restrictions be placed on the use of separate properties, but in such cases a decision by all co-owners is required.

Any amendment to the regulation or recommendation on horizontal property ownership made without the consent of all co-owners is invalid and does not bind those who disagree, even if it is in the form of a notarial deed and is transcribed. However, in the event that, despite the mandatory provision of Article 4 § 1 of Law 3741/1929, the majority of co-owners attempt, by means of a notarial deed submitted for registration, to amend the deed of incorporation and the regulations of the apartment building, thereby infringing the above rights of the minority co-owners, the legal act drawn up in accordance with the above is, in relation to them and insofar as their rights are affected, absolutely null and void (Articles 174 and 180 of the Civil Code) as directly contrary to a provision of law (174 of the Civil Code) and may be recognized as invalid at any time without time limitations under Article 70 of the Code of Civil Procedure.