Unpaid building management fees and the restrictions that may apply

Property owners are responsible for paying building management fees. When these fees remain unpaid, owners may face late payment charges as well as restrictions on selling, gifting or mortgaging their property until the outstanding balance is settled. These restrictions apply only when the legal conditions are met and the required procedure has been followed.

Albania’s Law No. 55/2025 on the management of jointly owned property in buildings sets out when these measures can be taken, the responsibilities of each party and how restrictions are removed after payment. Understanding these rules helps owners, building administrators and management companies handle outstanding fees with accurate information and a clear understanding of their roles.

Payment deadlines and late payment charges

Under Article 33, the owners’ assembly determines how and when building management fees must be paid. If a payment is overdue, a charge equal to 30% of the fee applies for each month of delay. Owners who qualify for special legal status and protection under applicable legislation are exempt from this charge.

Reporting and verifying outstanding fees

If overdue fees and the associated late payment charges remain unpaid into the third month, building administrators or management companies must notify the owners’ board and assembly in writing. The assembly consists of all unit owners in the building. The board is elected by the assembly to represent the owners and carry out the responsibilities assigned by law.

Article 33 also requires a list of owners with unpaid fees, together with the amounts owed, to be displayed on the building’s premises. The board verifies and determines the outstanding fees and late payment charges.

Understanding property restrictions and their implications for owners

A restriction is entered in the property register and prevents certain transactions involving the property until payment of the outstanding balance has been confirmed. These include selling or gifting the property, granting rights to use it, or placing a mortgage or other encumbrance on it.

Owners retain ownership of their property, and the restriction itself does not provide for eviction. Its purpose is to secure the unpaid debt by preventing the relevant property transactions until the balance is settled.

Conditions for requesting a property restriction

Alongside debt recovery procedures, the law allows a restriction to be registered against a property to secure outstanding payments. Under Article 34, building administrators or management companies may apply to the State Cadastre Agency when management and maintenance fees have remained unpaid for at least 12 months, or when the outstanding debt reaches at least 0.5% of the unit’s value.

Either condition is sufficient. If the debt reaches the 0.5% threshold, there is no requirement to wait until 12 months have passed. For a property valued at ALL 10 million, for example, the threshold would be ALL 50,000 in unpaid fees.

Meeting either condition allows the procedure to begin; it does not automatically trigger a restriction. Prior notice, a board decision and supporting documents submitted to the Cadastre are required. The third-month notification requirement for overdue payments is a separate step and should not be confused with the conditions for requesting a property restriction.

Notice and approval of the restriction

The notice must identify the owners with outstanding payments, the amount owed and the property concerned. It must also explain that the restriction requires a decision approved by a qualified majority of the board’s members, with building administrators or management companies authorised to submit the application to the Cadastre.

Supporting documents include the approved decision, evidence of the outstanding debt and proof of the identity of the administrator or management company. Under Article 34, the restriction must be registered within 15 days once the application and supporting documents have been submitted and the cadastral fees have been paid.

Fees for unoccupied properties

Owners remain responsible for building management fees even when they do not live in their properties. Article 11 also provides for payment when units are rented out. Article 14 states that owners of unused units must contribute to the management and maintenance of jointly owned property on the same basis as other owners, unless the owners’ assembly decides otherwise.

Leaving a property vacant therefore does not automatically exempt it from management fees. Any reduction or different arrangement for unused units requires a decision by the owners’ assembly.

Removing the restriction after payment

Once the accumulated debt has been settled, owners may apply to have the restriction removed by submitting bank confirmation of payment. Article 34(5) states that no further board decision is required. The State Cadastre Agency must remove the restriction from the property register within five days of receiving confirmation that the debt has been paid.

The importance of accurate payment records

For building administrators and management companies, reliable records of charges and payments for each unit are essential to verifying outstanding balances. Payment deadlines, amounts received and remaining balances need to be clear, while notices, decisions and supporting documents should be kept organised. This helps provide owners with accurate explanations and prepare the documentation needed for legal procedures.

Community brings charges, payment tracking and document management together in one platform. Building administrators and management companies can access the information needed to verify payments, while residents can view their outstanding balances and the costs of relevant services. Any legal action must follow the applicable requirements for notices, authorisations and decisions.

This article draws on SkyWeb.al’s reporting of 23 October 2026 and Albania’s Law No. 55/2025 on the management of jointly owned property in buildings.