No. 34

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Right of security of apartment association

14 December 2016

Varia

RiTo No. 34, 2016

  • Rein Tiivel

    Professor Emeritus, Academy of Security Sciences

At the beginning of 2014, the Riigikogu passed the Apartment Ownership and Apartment Associations Act, which was prepared in the Ministry of Justice and passed several rounds of coordination.

The Act should enter into force in 2018. Among other things, it provides securing the management costs of apartment associations with the right of security (Article 44 of the Apartment Ownership and Apartment Associations Act) Several substantial comments and proposals regarding the Act indicate that the right of security of apartment association is not sufficiently justified, may cause ambiguity when used, and it is doubtful whether it fits into the existing system of rights of security. The article discusses several questionable moments and ambiguities that are connected with the legal right of security of apartment association, and shows that they could be avoided by replacing the complicated legal right of security with simple preferential right of apartment owners, that is not right of security, when the Act enters into force.

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