What the Supreme Court decided and what it means for the buyer
When you buy an apartment, the mere transfer of ownership does not oblige you to pay the debts of the previous owner. The Supreme Court in case № 201/11406/20 of 26.06.2022 confirmed the position of the lower courts in the dispute about removing a debt from the personal account of the new owner. This is report.
A simple principle follows from the case. Utility services are paid for by the person who actually used them. If arrears accumulated before the change of ownership, they do not automatically transfer to the new resident. It is a different matter if the buyer has expressly taken on the obligation in the contract of sale.
How the process of recognising a debt as someone else’s works
Here are the simple steps that explain what happens and what the new owner can do. This is not an instruction on forms and deadlines but a description of the general procedure as it looks in practice.
- Check the status of the personal account with the utility provider and identify the billing periods that are in doubt.
- Compare the contract of sale and the date of transfer of title with the billing periods to determine who used the services.
- Contact the provider with a request to remove the debt from your account and provide proof of ownership.
- If the provider refuses, challenge the charges in court citing Supreme Court decision № 201/11406/20 of 26.06.2022.
Will the court always side with the buyer?
The court in the named case sided with the new owner, but that does not mean an automatic victory in every case. The specific dates of service usage and the existence of agreements in the contract of sale about the transfer of debt will be important.
The Supreme Court also emphasised that the provisions on the obligations of co-owners of an apartment building relate to the maintenance and operation of common property. They do not transfer another person’s personal debts for utility services onto the new owner.
What to do if there is a debt on your account after purchase
First, check the billing periods and the documents that confirm the transfer of ownership. If there are discrepancies, contact the provider with a request to remove the debt from your personal account. In the cited case, the court granted such a request by the new owner.
The source does not include a list of specific documents or deadlines for submitting such requests and does not specify the procedure for submitting appeals online. If the provider does not cooperate, the civil-law route of challenging the charges in court remains available, citing Supreme Court decision № 201/11406/20 of 26.06.2022.
Who this applies to and a short checklist of actions
This issue primarily concerns those who bought an apartment and found debts on their personal account for a period before the change of ownership. Check your account, the terms of the contract of sale, and contact the provider.
If you need additional legal argumentation, the Supreme Court decision lists case № 201/11406/20 and the date 26.06.2022, which can be used in appeals and claims.
