News

12.03.2025,

Property Management Companies to Be Mandated with Professional Liability Insurance, Homeowners’ Associations to Receive Unique Identification Codes

Professional building managers and homeowner associations in multi-family residential buildings will be registered in electronic databases integrated into a unified information system. This is stipulated in a draft Ordinance on the Unified Information System for Condominium Ownership, developed by the Ministry of Regional Development and Public Works (MRDPW). The system is provided for under the Condominium Ownership Management Act, amended in September 2023. The draft has been published for public consultation. 

The system will contain data on homeowner associations and management boards (or managers) of buildings or individual entrances operating under condominium rules, as well as the responsibilities of the relevant administrative authorities for entering, updating, and removing information. Both registries will be administered by the MRDPW. Designated officials responsible for updating the Registry of Professional Managers will be appointed by order of the Minister of Regional Development and Public Works, while mayors of municipalities and districts will appoint the persons responsible for maintaining the Registry of Condominium Ownership.

The ordinance also defines the procedures and conditions for concluding a “Professional Liability” insurance contract, which, according to legal requirements, must be held by professional building managers within 15 days of receiving a registration certificate in the system. It outlines the insurance coverage, excluded risks, and minimum insured amounts in relation to the obligation of professional managers—operating as businesses—to maintain such insurance. The policy must be renewed annually without interruption for as long as the manager continues to practice property management.

Additionally, the ordinance stipulates that each condominium must be assigned a unique identification code upon registration with the municipal or district administration. The code will consist of 10 or 11 characters and will be issued upon registration, based on an application submitted electronically, in writing using a standard form, or verbally.
The draft ordinance can be found on the Public Consutation Portal and the official website of the MRDPW.

Source: MRDPW