Compensation for the condominium administrator who does not take action against arrears

The administrator who is inactive towards those in arrears risks paying out of his own pocket. These are the conclusions reached by the Court of Appeal of Bari in ruling 606/2026 filed on 5 May.

The judges were approached by a condominium owner who brought an action against the outgoing administrator, claiming proven cash shortages and inertia in the recovery of condominium receivables. The activity of collecting contributions is one of the ordinary duties of the administrator, pursuant to Article 1130 of the Civil Code, point 3 of which includes the duty to 'collect contributions and disburse the expenses necessary for the ordinary maintenance of the common parts of the building and for the operation of the common services'. Failure to take action to recover condominium debts constitutes aserious management irregularity and the person who performs it may be dismissed.

According to the preceding Article 1129(9) of the Civil Code, the administrator, unless expressly dispensed by the shareholders' meeting, 'is obliged to act for the forcible collection of the sums owed by the obligors within six months from the end of the financial year in which the receivable is included'. This obligation arises automatically and does not require prior authorisation by the shareholders' meeting. Inaction exposes the professional, again by virtue of the provisions of Article 1129, to contractual liability for thedamage caused to the condominium, which may act, as in the present case, for compensation.

Also interesting is the assessment made in relation to the failure to appear in court in the first instance and the absence of proof of the destination of thecash amounts. The numbers help to understand: for the two-year period 2016-2017, cash receipts amounting to more than EUR 117 thousand emerged, against documented expenses of just under EUR 80 thousand. The professional had not been able to produce the appropriate supporting documents to prove the use of the remaining 37 thousand euro paid by the condominium.

It must be said that the management documentation had been handed over by the outgoing administrator to his successor. The documents revealed the inertia of the professional, who had failed to prove either the destination of the sums collected or the initiatives taken against those in arrears. It is the condominiums' right to request a copy of the injunctions issued for the recovery of condominium debts.