For Buyers

Understanding the Role of the Condominium Manager: A Comprehensive Guide

Understanding the Role of the Condominium Manager: A Comprehensive Guide

Co-ownership is a complex organization, bringing together individuals with sometimes diverging interests. To manage this complexity, the law has instituted a central actor: the co-ownership syndic. Their mission, powers, responsibilities, the functioning of general assemblies, fees, charges, and accounting are all crucial points to understand in order to live peacefully in a co-ownership.

1. Role of the co-ownership syndic

When the first lot of a building is sold, a syndicate of co-owners is automatically created. It gathers all the co-owners and possesses a distinct legal personality. The co-ownership syndic, which can be a natural or legal person, is the legal representative of this syndicate. They are responsible for the daily management of the co-ownership, compliance with the co-ownership regulations, and can conclude contracts and buy or sell property on behalf of the syndicate.

1.1. Responsibilities of the co-ownership syndic

The syndicate of co-owners is responsible for the co-ownership's insurance, which covers risks such as fire, glass breakage, theft, and civil liability. The private areas of the co-ownership belong to one or more co-owners, while the common areas are the property of the syndicate of co-owners as an undivided entity. The mandate of the co-ownership syndic has a maximum duration of 3 years, renewable after a vote in a general assembly. Their duties include enforcing the co-ownership regulations, maintaining the updated list of co-owners, executing decisions made in general assemblies, day-to-day management, intervening in the event of urgent works, drafting the budget and accounting, and advising the co-owners. The co-ownership syndic is remunerated according to fees distributed based on the thousandths of each lot, and must have a real estate management authorization issued by the Ministère des classes moyennes. It is also necessary for the syndic to have professional civil liability insurance.

1.2. Syndicate council

A syndicate council, composed of a president and two members, is not mandatory but can be set up by a vote in a general assembly. Common equipment refers to installations whose ownership is undivided between certain co-owners, depending on their respective utility for each lot.

2. Monthly advances and charges

Monthly advances and charges are voted on in a general assembly by a simple majority. The collection of charges does not require the agreement of the general assembly. The syndic can proceed with collection using means such as account statements, reminders, formal notices, payment orders, the intervention of a lawyer, or legal summons. It should be noted that there is joint liability between the seller and the buyer in the payment of charges. Furthermore, the syndic does not need the agreement of the general assembly to carry out urgent works.

3. Annual statement and accounting

An annual report and accounting are presented during the annual general assembly. Contracts and invoices are drawn up in the name of the syndicate of co-owners. The distribution of expenses among the co-owners is carried out according to the co-ownership regulations. The syndic does not provide statements to tenants.

4. Current account

Each co-ownership must have at least one current account. The syndic can choose the bank, but it is preferable to obtain the agreement of the general assembly. The syndic has power of attorney over the current accounts, which is mandatory.

5. Reserve fund and working capital/petty cash fund

The reserve fund is used to finance potential major works in the future. It is not refunded when a co-ownership lot is sold. Its amount, its increase, and its funding are voted on during the general assembly by a simple majority. The general assembly decides if and what amount must be paid during the works. As for the working capital or petty cash fund, it must be refunded to the co-owners in the event of the sale of a lot. It is used to feed the current accounts and functions as a sort of "credit line". Its amount, its increase, and its refund are voted on during the general assembly by a simple majority.

6. Tenant and transfer of ownership

The owner can recover from their tenant the costs of maintenance, small works, energy, and waste processing. In the event of a transfer of ownership, it is mandatory to inform the syndic.

7. Vertical cadastre

The vertical cadastre is mandatory for the notarial deed.

8. General assembly

The general assembly is the decision-making body of the co-ownership. It is held at least once a year, and it is during this meeting that the majority of decisions concerning the management of the co-ownership are made. It is therefore essential to fully understand how the general assembly works.

8.1. Steps of the general assembly

  • Preparation of statements: once a year, a legal obligation.
  • Convening letter: sending a convening letter indicating the date, time, and place of the general assembly, accompanied by proxies and the agenda. All co-owners must be convened, without exception. The notice is generally sent by registered mail with a notice period of 15 calendar days.
  • Holding of the general assembly: a president chairs the meeting, a secretary drafts the minutes, and two scrutineers count the thousandths and verify the attendance list and proxies, as well as the voting results.
  • General assembly report: opposing and absent co-owners can challenge one or more decisions made during the general assembly through appropriate legal channels.

8.2. Compliance with deadlines

The notice of the general assembly must be sent at least 15 days before the meeting. The addition of an item to the agenda must be done within 6 days from the date of the notice. The challenge of a decision made during the general assembly must be carried out within 2 months from the date the general assembly report is sent. There is no specific deadline for sending the report.

8.3. Majorities in co-ownership

Decisions made during the general assembly are subject to majority rules. These rules vary depending on the importance of the decision to be made. Majorities in co-ownership can be classified into several categories:

8.3.1. Simple or relative majority

Approved if more than 300/1000 vote in favor, based on the thousandths present and represented during the general assembly. It is used for the approval of the accounts, the annual budget, monthly advances, the discharge to the syndic, the discharge to the syndicate council, the reserve fund, the working capital fund, and maintenance and/or repair works for a cracked or broken facade (new rendering/facade painting).

8.3.2. Absolute majority

Approved if more than 500/1000 vote in favor, counting all the thousandths. May require a second general assembly if the attendance quorum is not reached during the first one, then the vote is taken by simple majority. It is used for delegations of power subject to a simple majority vote, the appointment/revocation of the syndic, the appointment/revocation of the syndicate council, authorization granted to certain co-owners, maintenance and improvement works for a cracked facade, and a poor EPC (Energy Performance Certificate) for two new insulating facades.

8.3.3. Majority of % or double majority

Requires at least 750/1000 of all the co-owners and the majority of all co-owners. Used for acts of disposition, acts of real estate acquisition (for example, renting a common garden), modifying the co-ownership regulations, and acts of administration (for example, renovating the facade, roof insulation).

Conclusion

The co-ownership syndic is an essential actor for the proper management of the co-ownership. Their role is complex and requires an in-depth knowledge of co-ownership law. As a co-owner, it is important to understand their role and responsibilities to be able to properly follow the evolution of your co-ownership.