2018-01-08

High Court Judgment on Condominium Regulations

Under the Condominium Administration Act, all condominium inhabitants are required to follow condominium regulations. It is very usual that condominium regulations stipulate that grantees of condominium unit ownership must assume all rights and all obligations of the original unit owner, as defined by the Act or the condominium regulations after the grant.

In a Taiwan High Court case, a condominium inhabitant (“grantor”) owed his condominium management committee a certain amount of management service fee and said inhabitant subsequently sold his condominium unit to another person (“grantee”).

The management committee of this condominium advised the grantee that per the condominium regulations and the CAA, inhabitants owing the management service fee cannot receive a remote-control device for the parking area and the grantee must assume all rights and all obligations of the original unit owner (grantor) after the grant.

As the grantor did not pay the management service fee before transferring ownership of his unit to the grantee, the grantee was not permitted to receive the remote control device. Grantee thus filed a claim against the condominium management committee demanding a remote control device for the parking area.

The High Court pointed out that although the grantee is required to adhere to the condominium regulations and to assume the rights and obligations of the original owner (grantor) as stipulated by the CAA, nonetheless, the regulations cannot be enforced if the regulations violate public policy, prohibitive provisions, and or the principle of good faith.

The Court further stated that the condominium regulations in this case infringed grantee's right to use, to gain profits from, and to dispose of freely his or her parking space, and violated grantee’s right to exclude interference of others, which situation is inconsistent with Article 765 of the Civil Code regarding the rights of the owner of a thing, and also violated the public policy and the proportionality principle.

As such, the High Court ruled that the subject condominium regulations are enforceable and ordered the management committee to hand over the remote control device to the grantee.
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