Rights and obligations of co-owners: What must a co-ownership agreement contain?

Does your building have a co-ownership agreement? If you live in an apartment building, you may not be aware of how important a document like a co-ownership agreement can be for peaceful coexistence with other tenants.

Namely, the co-ownership agreement represents the legal basis for determining the rights and obligations of all co-owners of the building. It serves as a guide for mutual relations in the community, ensures compliance with regard to the maintenance of the building, the use of common areas, and even sanctions for non-compliance with agreed rules.

What is a co-ownership agreement and why is it important for tenants?

The co-ownership agreement is a fundamental document that regulates the mutual relations of co-owners in connection with the management, maintenance and use of common parts of the building. Its conclusion is mandatory for all buildings in Croatia, and from January 1, 2025, according to the new Law on the management and maintenance of buildings, co-owners are obliged to conclude a co-ownership agreement and a building management agreement by January 1, 2027. Read more in the Guide for managers of the Ministry of Physical Planning, Construction and State Property.

Who concludes the co-ownership agreement?

The co-ownership agreement is concluded in writing and is considered concluded when it is signed by the majority of co-owners whose co-ownership parts make up more than half of the total value of all special parts of the property. Decisions arising from the co-ownership agreement bind all co-owners, including those who acquired the right of co-ownership after the conclusion of the agreement.

What must a co-ownership agreement contain?

According to the Law on the management and maintenance of buildings, a properly drawn up co-ownership agreement must contain several key items that are of great importance to every tenant and property owner. This agreement is a tool that helps clarify mutual rights and obligations, and defines the rules that must be respected by all co-owners, so that the common space is safe and functional.

The law clearly stipulates what the co-ownership agreement must include, and this includes:

The size of the co-ownership parts of the property – This item determines how much each co-owner owns of the common part of the building, as well as the share in the common property.


Conditions and method of collecting and disposing of common reserve funds – Rules are established for collecting funds for building maintenance and rules for how these funds are used. Here, the amounts for monthly or annual amounts that each tenant must pay can also be defined.


The possibility of representation of the community of co-owners by a representative – The agreement defines the rules on how a representative of the community of co-owners can be appointed, who is responsible for making decisions on behalf of all tenants, as well as the possible right to a power of attorney.


Obligations to adhere to house rules – House rules are necessary to maintain peace and order within the building, and this article establishes the rules on what is permitted and what is not in the common areas.


The possibility of determining compensation for non-compliance with house rules – If someone does not respect the house rules, this article enables the determination of sanctions. As a rule, financial compensations are introduced, and the amount of compensations must also be clearly defined.


Conditions and manner of using common rooms, devices and land – Here, the conditions under which corridors, courtyards, storage rooms and all common areas can be used, as well as the way of using common devices such as elevators or heating, are defined.


Other provisions necessary for regulating mutual relations of co-owners – Depending on the specifics of each building, the co-ownership agreement may include additional items that are specific to that community, such as rules for using garages, terraces, or specific investments.


At the same time, it is important to note that the co-ownership agreement is considered concluded and binding on all co-owners when it is signed by the majority of co-owners. This process allows the majority to make important decisions on behalf of everyone, and the decisions arising from the agreement bind all co-owners. The building manager must submit the co-ownership agreement to the Register of Communities of Co-owners within 15 days of its conclusion. In this way, transparency and legal security are ensured for all tenants.

Why is the co-ownership agreement important for tenants?

The co-ownership agreement is not just a legal document; it represents the basis for the orderly and transparent functioning of the community of co-owners. Without it, misunderstandings and uncertainty can arise in connection with various issues related to living in the building.

The co-ownership agreement brings a number of important guidelines that enable tenants:

Transparency in collecting and spending common reserve funds – Clearly defined conditions enable fair management of the money collected for common needs, such as building maintenance, repairs or investments in improvements.


Compliance in the use of common areas and devices – The agreement regulates everything related to the use of common areas such as corridors, courtyards, storage rooms, but also devices belonging to the building, which ensures that all tenants have equal rights and obligations.


Effective decision-making through the representative of the co-owners – If a disagreement occurs or there is a need to make a decision related to the building, the co-ownership agreement enables the representative of the co-owners to take responsibility for making those decisions, facilitating and accelerating the process.


Introduction of house rules and sanctions for their violation – In order to maintain order and harmony in the community, the house rules must be clearly defined. This includes everything from noise time restrictions to the use of common areas, and also sets sanctions for those who do not respect the rules.


Legal framework for resolving possible disagreements among co-owners – Disagreements are inevitable in the community of co-owners, but the co-ownership agreement provides the legal basis for their resolution, without the need for expensive and lengthy court proceedings.


Every building that has more than one owner must have a co-ownership agreement. This is a legal obligation that ensures a clear definition of the rights and obligations of all co-owners, and without it, disagreements may arise regarding the management, maintenance and use of common areas. The building manager has a legal responsibility to take measures to ensure that the co-owners conclude this agreement, and if this does not happen, a compulsory representative of the co-owners may be appointed who will take responsibility for concluding the co-ownership agreement.
This agreement enables the proper functioning of the community of co-owners, ensures legal security and prevents potential disagreements among the owners. Also, the existence of a co-ownership agreement is necessary for the submission of the building to the Register of Communities of Co-owners, which is of key importance for the legal and smooth operation of the manager.

There is also a potential penalty for co-owners who do not conclude a co-ownership agreement. The law stipulates that if the co-owners do not conclude this agreement within the prescribed period, the building manager can take measures, including imposing a fine for those who do not act in accordance with the obligation. Therefore, it is of essential importance that every apartment owner in a multi-family building understands the importance of the co-ownership agreement and participates in its conclusion in order to ensure the functionality and legal security of the community.