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Taking the decision and gathering votes

📐 Article6 min read

What you will learn Which majority is required, what to watch in the procedure, whom the decision binds, what to present so that a decision can be taken, and what not to do.

A renovation decision is not an ordinary management decision. A stricter requirement applies to it, and disregarding that requirement leaves the decision open to challenge.

1. Which majority is required

Three levels that must not be confused.

Decision Requirement
Ordinary management questions a majority of those present at the meeting
Amending the articles more than two thirds of the votes in favour of those present
Renovation or borrowing a qualified majority: more than half of all the votes, cast by apartment owners holding more than half of the shares of the common ownership

The third level is a double requirement, counting both the number of votes and the shares of the common ownership, and it is measured against all of them rather than those present. Absentees are therefore not neutral but effectively votes against. The voting rules of a particular association may differ in its articles, and these must be checked before the meeting.

2. What to watch in the procedure

Four things are all grounds for challenge, and the second is the most common error. It concerns the notice of the meeting.

What to watch Content
Quorum those present hold more than half the votes and more than half the shares of the common ownership, unless the articles provide otherwise
Agenda a decision cannot be taken under "current questions" or "any other business"
Minutes the meeting is minuted, signed by the chair and the minute-taker
A separate decision on the loan where a loan is needed

The second is common because the subject of renovation often arises out of discussion and it feels natural to decide there and then. A formal error does not automatically make the decision void, but it provides grounds for challenging it.

3. Whom the decision binds

Three observations matter for the association, and they work in both directions. Procedural rules protect both sides.

According to professional sources, a decision duly adopted is binding also on those who did not take part in adopting it or who voted against it. According to the same source, an apartment owner has the right to apply to a court to challenge a decision within three months of the day they learned of it, and an unchallenged decision is binding.

Where the decision has been taken correctly, an individual apartment owner cannot block the works, including works on the common pipework inside their apartment. The reverse holds equally: a procedural error gives an objector a real instrument, and it is used.

4. What to present so that a decision can be taken

Five things must be presented in writing before the meeting, and the second decides the vote. It concerns the cost per apartment.

What to present Note
What will be done and why including the main conclusions of the technical survey
What it costs in total and per apartment per month this is what is actually voted on
The size of the support and the own contribution the funding plan in brief
What happens if nothing is done how the building's condition and costs develop
Two scenarios for instance full and partial, rather than one proposal

An apartment owner votes on their own monthly payment rather than on the total cost. The fifth point is underrated, because a choice between two options gathers votes better than a yes or no on a single one.

5. What not to do

Three errors are all human, and the third recurs. Do not put the decision to the meeting for the first time at the deciding meeting. Do not present only the technical side, since the vote is about people's finances. And do not underestimate the opposition, since it does not disappear through silence.

Objectors who do not attend the meeting still count, because of the qualified majority requirement. Attendance therefore matters.

Summary and four practical rules

A decision on renovation and on borrowing requires a qualified majority counting both the number of votes and the shares of the common ownership, measured against all the votes, so absentees are effectively votes against. There are four grounds for challenge in the procedure, the most common being a decision taken under "any other business", which is not permitted. A duly adopted decision binds those who voted against as well, and the period for challenging it is three months from learning of it.

Four rules: check the voting rules in the articles before the meeting. Put renovation and borrowing as separate agenda items. Show the cost per apartment per month, not only as a total. Give the discussion its own meeting before the deciding one.

This article offers professional orientation as at the date of verification. It is not legal advice.

Frequently asked questions

The requirement has to be taken from the Apartment Ownership and Apartment Associations Act and from the association's articles. Where a qualified majority applies, objectors who do not attend still count against the decision.

Four things are all grounds for challenge, and the most common error concerns the notice of the meeting. The procedural rules have to be followed to the letter.

Five things, and the vote is usually decided by the second of them, the cost per apartment per month. A total alone leaves the decision too abstract.

No, they work in both directions. A properly conducted procedure also protects the board against later complaints.

Renovating apartment buildings and houses in Estonia