Major repairs in an apartment building: who pays when selling an apartment?

When major repairs are planned in an apartment building, an important question arises: who should pay for these expenses if the apartment is sold? The answer to this question depends on when exactly the repairs were approved - before or after the purchase and sale transaction.

Who pays for major repairs if they were approved before the sale?

If major repairs were approved at a general meeting of owners before signing the notarial deed (purchase and sale agreement), then the costs are legally borne by the seller. According to recent court decisions, the seller, who was the owner at the time the work was approved, is obliged to pay all costs associated with them.

This is confirmed by a court decision in Naples in November 2023. In this case, the new owner, who received demands for payment from the contractor, challenged this in court and won the case. The court ruled that the previous owner should pay for the repairs, since he was the owner at the time the decision to carry out the repairs was made.

What to do during ongoing repairs?

These rules apply exclusively to major repairs. As for current repairs, the situation is different. If current work was approved before the transaction, but completed after, the costs are borne by the new owner, since he directly uses the results of these works.

The Importance of Agreements Between Seller and Buyer

During the purchase and sale transaction, the seller must inform the buyer about upcoming repairs. This allows the parties to agree on who will pay for the upcoming costs. For example, a clause can be included in the contract, according to which the seller undertakes to pay all expenses approved before the transaction.

What to do if the seller cannot pay for repairs?

If the former owner cannot pay for major repairs, the new owners are not obliged to take on these costs. In this case, the management company or HOA is obliged to collect the debt through the court from the previous owner, up to the seizure of his property.

Is it possible to pay for repairs in installments?

In case of financial difficulties, you can request an installment plan to pay for repairs. This is done through the management company, which brings the issue to a general meeting of owners for a decision. This approach helps prevent debt and avoid deterioration of the financial situation of the house.

Therefore, when selling an apartment, it is important to take into account the time of approval of major repairs and agree in advance on the distribution of costs in order to avoid conflicts and misunderstandings.