THE PROBLEM OF IDENTIFICATION OF THE SCOPE OF DUTIES OF RESIDENTIAL HOUSE ADMINISTRATORS IN THE EVENT OF FINANCIAL CONFLICTS WITH THE OWNERS

Abstract

The problems of the present research and their topicality. In the Republic of Latvia, the Law on administration of residential houses came into force on 1 January 2010. This law provides that legal relations in the process of administration should be also governed by the Civil law, namely, by the provisions of the section thereof on Authorization contract, but only in those aspects that are not regulated by the Law on administration of residential houses. The Law on Administration of Residential Houses lays residential property owners under obligation to ensure the process of residential property administration, and to conclude an Administration contract with an Administrator if such person is assigned to perform the management of a residential property. The same law also establishes the obligation of residential property owners to provide the process of management with necessary  nancing. However, in practice, disputes often arise between residential property owners and their administrators on whether administrators should perform their duties as required and to carry out mandatory managerial actions in compliance with the law and principles of administration established by law in the situation when necessary  nancial means are not provided by the residential property owners. The goal of research was to contemplate on the need to secure legislatively the scope of duties of residential house administrators when necessary  nancial means are not provided by the owners. Analyzing the provisions of the law related to the principles of administration and responsibilities of the administrator in ful lling the administrative task, it is impossible to make an unambiguous conclusion on whether administrators should continue to perform their duties and ensure implementation of actions established by the law in case of insuf cient provision of necessary  nancing by the residential property owners. The main results of the research: Having assessed the current situation, in order to avoid con icts and lengthy court proceedings, for the best possible pre-trial settlement of disputes between administrators and owners and more precise de nition of the administrators responsibilities in cases of non-receiving necessary  nancial means from the owners, it is legally necessary to take the following actions: at the legislative level to develop a mechanism ensuring the provision of mandatory services in situations where the owners do not provide adequate  nancial means; and to determine the scope of responsibility of both parties and the consequences for noncompliance with legal norms; to identify and secure the notion of administration and residential house servicing / maintenance, and to determine the rights and obligations of administrators and persons performing residential house servicing / management. to revise the list of mandatory actions, excluding a number of items, thus allowing persons performing residential house servicing / management to ful ll actions of technical maintenance, running repairs and sanitary servicing. As a result, mandatory administrative actions will be ful lled directly by administrators who will be under obligation to enter into relevant contracts on behalf of the owners. In turn, the persons performing residential house servicing / management will be service providers in relation to the owners without any opportunity to perform mandatory administrative actions; to introduce compulsory insurance of civil legal liability of administrators; to supplement the Law on administration of residential houses with the norm obliging their owners to make savings, which administrators will be able to use for the implementation of mandatory administrative actions, in cases when the owners do not provide necessary  nancial means. This would help to eliminate the necessity for legal regulation of the scope of responsibilities of residential property administrators in the events of  nancial con icts with the residential property owners.