When there are more than two co-owners of a property, joint management of the land can pose many problems, especially if you do not know your rights and obligations in relation to the common property. It is therefore worth clarifying the basic issues so that the being of coowner does not become a nuisance.

The management of a jointly-owned property is nothing more than the taking of all decisions and actions by all co-owners in order to maintain the property in an appropriate condition. In connection with taking various actions, we may divide them into ordinary management actions (where majority decides) and those exceeding ordinary management (where all the owners must vote in favour). The question rightly arises: how to distinguish these two groups ? Unfortunately, the legislator has not provided a specific catalogue of their distinction. The principal criterion is based on consequences resulting from a given action, which affect the ability of co-owners to exercise their ownership rights. As indicated by the National Administration Court in the judgment of 19.06.2012 (II OSK 511/11): ‘Actions having a significant impact on the ability of co-owners to use the property should, as a rule, be deemed to be actions exceeding the scope of ordinary management. On the other hand, acts which do not significantly affect the possibility of the co-owners to use the property may be deemed acts which do not exceed ordinary management.’

Here is the knowledge in a nutshell to make sense of the impact of the management of the common thing on the co-owners.

1. Acts of ordinary management.
2. a) Definition: These include all activities aimed at maintaining the thing in its present condition and managing it to enable it to be used and to derive benefits from it (Resolution of the Supreme Court, Civil Chamber, 19.4.2002, III CZP 18/02). That is, nothing more than the handling of day-to-day affairs that do not entail significant expenses and do not lead to deterioration and a change in the use of the thing and protect it.
3. b) Examples:

– collection of benefits and income, cultivation of land, maintenance, administration;

– bringing an action for protection of property, possession, eviction, rent, compensation for property insurance or damage to property, concluding agreements related to management and operation;

– installation of facilities such as water and sewerage connections, construction of underground cable line for electricity supply on the property.

The manner of deciding whether to carry out acts of ordinary management is regulated in  Article 201 of the Civil Code according to which the consent of the majority of co-owners is needed, which is calculated according to the size of the shares. The absence of the consent of the majority of co-owners renders the legal action invalid, but each co-owner may request a court authorisation to perform the action.

2. Acts exceeding ordinary management.
3. a) Definition: These are the acts that have the most serious consequences in relation to the common property, i.e. transfer of ownership, encumbrance or alteration.
4. b) Examples:

– construction of a new building on the land, reconstruction, extension, superstructure of the property and, in some situations, costly renovation;

– consent of the owner to occupy the property for the construction of transmission facilities;

– removal of a tree from a common property .

The consent of all co-owners is required, as provided for in Article 199 of the Civil Code, through a joint declaration of will agreeing to the act in question. As in the case of ordinary management, the lack of consent of all co-owners renders the action ineffective and a court decision may be requested, but only by co-owners whose shares amount to at least half.

It should also be noted that the co-owners may contractually stipulate the rules of management of the joint property and differently from the rules regulated by the Civil Code. That is, they may agree that the consent of all is required for acts of ordinary management or that only the consent of the majority and not of all co-owners is required for acts exceeding ordinary management. The co-owners may also divide the common property for use, i.e. receive for their exclusive, independent use a physically separated part of that common property. This so-called quoad usum division is an act exceeding the scope of ordinary administration, and therefore must be agreed to by all co-owners.

Whether or not an action falls within the scope of ordinary management is quite a problem for the majority, so each situation must be approached individually and assessed objectively. Each co-owner has not only the right, but also the duty, to participate in the management of the common property, so it should be in everyone’s interest to manage it in accordance with its purpose and to preserve its characteristics.