Post by mdshamiul777 on Feb 12, 2024 7:31:35 GMT -5
The contingency fund for horizontal property is a fundamental figure within any condominium or co-ownership. It seeks to preserve its common spaces and the property in optimal conditions. His figure can cause doubts, inconveniences or disagreements. However, the most important thing to consider is the use given to this financial section. To do so, it is necessary to explain its motivations and uses in detail. This item, which is charged within common expenses in real estate communities, is sometimes not very well understood. Next, we invite you to discover what this contingency fund is all about. What is a contingency fund for horizontal property? The contingency fund for horizontal property of a residential complex, co-ownership or condominium is an account created to cover extraordinary expenses. That is, it constitutes the economic or financial reserves necessary to face unforeseen events or emergencies. Despite this being its purpose, the variable or constant late payment of some co-owners, residents or tenants affects its availability.
In other words, sometimes the administration must use this fund to cover ordinary common expenses . This situation results in the direct impact of its reserves and even their disappearance. “Every condominium must establish a contingency fund for horizontal property to be able to meet and finance expenses that arise unexpectedly or untimely.” Now, articletablishes that every condominium must create a common Vietnam Email List reserve fund. This in order to be able to meet and finance obligations, works or expenses that arise unexpectedly. On the other hand, the aforementioned article establishes that the administrator may use the resources of the contingency fund for horizontal property. However, and on a mandatory basis, prior approval of the general assembly. Furthermore, you must do so in accordance with the provisions of the horizontal property regulations. This legal nature of the contingency fund denotes the mandatory nature of its creation . The intention is to maintain liquidity in the condominiums to be able to meet urgent requirements without requiring the collection of extraordinary fees.
Contingency fund for horizontal property: everything you need to know Photo by Steve Buissinne from Pixabay . CC0 license. What expenses can you cover with the contingency fund for horizontal property? The resources available in the contingency fund for condominiums can only be used to address unforeseen matters or contingencies. Broadly speaking we can mention: Repairs to common areas and assets. That is, they belong to the entire real estate community. The cost of the certifications that are mandatory for the correct and legal operation of the condominium. In this particular, we can mention certifications for forklifts, elevators, gas installations and others similar. Pay any claim Others that are approved at the co-owners meeting It is necessary to point out that the resources of this fund should not be used to carry out additional works ; for example, covering or heating a swimming pool. “Horizontal properties or co-ownerships must have sufficient resources available in a fund to deal with any type of eventuality and avoid compromising their normal functioning and the quality of life of the residents.
In other words, sometimes the administration must use this fund to cover ordinary common expenses . This situation results in the direct impact of its reserves and even their disappearance. “Every condominium must establish a contingency fund for horizontal property to be able to meet and finance expenses that arise unexpectedly or untimely.” Now, articletablishes that every condominium must create a common Vietnam Email List reserve fund. This in order to be able to meet and finance obligations, works or expenses that arise unexpectedly. On the other hand, the aforementioned article establishes that the administrator may use the resources of the contingency fund for horizontal property. However, and on a mandatory basis, prior approval of the general assembly. Furthermore, you must do so in accordance with the provisions of the horizontal property regulations. This legal nature of the contingency fund denotes the mandatory nature of its creation . The intention is to maintain liquidity in the condominiums to be able to meet urgent requirements without requiring the collection of extraordinary fees.
Contingency fund for horizontal property: everything you need to know Photo by Steve Buissinne from Pixabay . CC0 license. What expenses can you cover with the contingency fund for horizontal property? The resources available in the contingency fund for condominiums can only be used to address unforeseen matters or contingencies. Broadly speaking we can mention: Repairs to common areas and assets. That is, they belong to the entire real estate community. The cost of the certifications that are mandatory for the correct and legal operation of the condominium. In this particular, we can mention certifications for forklifts, elevators, gas installations and others similar. Pay any claim Others that are approved at the co-owners meeting It is necessary to point out that the resources of this fund should not be used to carry out additional works ; for example, covering or heating a swimming pool. “Horizontal properties or co-ownerships must have sufficient resources available in a fund to deal with any type of eventuality and avoid compromising their normal functioning and the quality of life of the residents.