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The following explains the responsibilities of the owners and elected management of a building owned jointly by individual owners of
apartments within the building.
French law defines in great detail both the rights of apartment owners within a Co-Propriété
- a residence or immobilier or building split into separate and physically
distinct apartments - as well as their responsibilities to other owners. These
are detailed in the volume of rules and regulations that each owner should
receive from the Notary at the same time as the title to their property.
Syndic or Managing Agent
The Syndic or Managing Agent is both the manager of the building and
the regulator of relationships between owners, service suppliers, and the
insurance company responsible for the dommage ouvrage (the 10-year
"building defects liability insurance" that must be taken out by the
developer of any apartment building).
Duties of Co-Propriétaires (or: owners)
It is the responsibility of each owner to understand the rights and the
responsibilities detailed by the statutes, and to ensure that they, their
families, servants, suppliers and tenants respect them.
The day-to-day safety
and management of an apartment building, as well as its long-term preservation,
is the joint responsibility of all the owners of apartments within a building
defined as a Co-Propriété.
If you buy an apartment with the intension of renting it out, you need to
notify the Syndic of your permanent address since you, as owner, remain
responsible for your tenant's behaviour and the payment of all service charges.
The Syndic does not recognise tenants, only owners with title.
The owner is responsible for paying the service charges due on the
apartment, and its dependencies such as storerooms and parking area, and the law
on payment is now very strict.
Each year the owners agree a budget with the Syndic for the management
cost of the whole building. Each apartment, store room and parking place
represents so many shares of the whole (normally ten thousands or tantiemes) and
this is the basis of the service charge assessment of the individual owner.
Based on this estimate, a provisional demand is sent to owners on the first day
of the current quarter, and is immediately payable. In the event that this
demand is not met, then all service charges due for the current fiscal year
become due and payable. The defaulting owner must then pay all collection
charges, including legal fees. The final sanction is sale of the apartment to
meet these expenses.
Assemblée Générale (AG) or General Assembly of Owners
Owners must hold at least one AG per year, at which they will:
- Decide what needs to be done for the maintenance, repair or improvement
of
the building
- Agree a budget that will cover the cost of this work for the current year
- Approve the spending of the budget of the previous year, and then accept
the completed accounts
- Dismiss, approve or re-appoint a Syndic to act as the executive authority
of the owners
Elect from their number a smaller group to act as adviser to the Syndic -
the Conseil Syndical (CS)
Authority of the Syndic (Managing Agent)
Under French property law, only the Syndic has executive authority and the
legal power:
- To collect service charges agreed at the AG, generally on a quarterly
basis, and proceed legally against those that have not paid
- To levy additional funds over and above the normal budget as agreed at the
AG
- To enter into contractual commitments with the major utilities such as water
and electricity, as well as cleaning firms, builders of various types, and
service suppliers such as TV installers, gardeners or swimming pool
maintenance firms
- To spend money on the building and its needs, unforeseen in the annual
budget but subject to an upper limit and sometimes the agreement of the
Conseil Syndical (CS).
Generally, but not always, the rules of behaviour stipulate that the exterior
appearance of a building, including windows and doors that are part of the
external appearance of the individual apartments, cannot be altered either by
paint or physical modification without the written agreement of the Syndic.
This is also true of other exterior modifications to private apartments such
as roof gardens, or a satellite TV dish.
Owners may carry out any modifications that they wish to the interior of
their apartments at their own expense but subject to: the design and
monitoring of a licensed architect and the approval of the planning
authorities and the written approval of the Syndic that all these
necessary procedures have been met.
Responsibility of the Syndic
A Syndic can only act within specific proposals previously agreed by the
AG, and within the limits of the budget voted for that purpose.
- The Syndic must keep all necessary records of the building, including the
addresses and voting rights of owners, changes of ownership of apartments
within the building, insurance and service contracts, and payments
authorised and made.
- The Syndic should ideally maintain a separate bank account for the
building (the Bonnemaison law) and this separate bank account must
itemise all sums and values received on behalf of the building, as well as
all those paid out of it.
- The Syndic's accounts of the building itself must show an up-to-date
record of all service charges, and especially any arrears.
- The Syndic also needs to keep insurance records. These are both for claims
and payments under the building defects liability insurance - such as a
leaking roof, cracking terrace or rotten drains - and for claims between
owners. Remember that French contents insurance requires apartment owners to
have cover against damage to neighbours caused by fire, flooding, DIY and
other domestic hazards.
- The Syndic is required by law to obtain three competitive quotes
for any significant service/work/contract. A normal figure for 'significant'
would be Euro1,500 to 2,000. If as an owner you are dissatisfied with the
maintenance contractor - or anyone else - hired by the Syndic, complain
first to the
Conseil Syndical (CS) and, if that is unsatisfactory, to the Syndic.
- If as an owner you are dissatisfied with the maintenance contractor - or
anyone else - hired by the Syndic, complain first to the CS and, if that is
unsatisfactory, to the Syndic. If that fails, and others share your concerns,
request that this is put on the agenda of the next AG (see Bringing about Change
below).
- The Syndic is responsible for calling the AG within 6 months of the
financial year end of the Co-Propriété , and delivering to all owners'
15 days before the AG the completed accounts for the previous year, a budget
for the coming year, and an agenda for the AG.
- Within 6 days of the receipt of the Agenda, owners can require the Syndic
by registered letter to add items to the Agenda of the AG. Remember
that matters not on the Agenda cannot be discussed at the AG, and any
discussions or decisions on such matters have no legal authority.
- The Syndic must make their office available on a defined day after the
calling of the meeting but before the AG itself, all records of the Co-Propriété
for any owner who wishes to inspect them. In addition to the bank
records, these must include supporting documentation for common expenses
such as invoices, contracts, and the general ledger.
- The Syndic acts as secretary to the AG, and sends out to all owners the proces-verbal
(minutes of the meeting) within a maximum 3 months of the holding of
the AG. These minutes must show those owners physically present, those
represented, decisions taken and votes in favour and against each decision
- The Syndic also has the authority to take such actions as are necessary to
preserve the integrity of the building, especially where the action or inaction
of an owner is causing - or may cause - problems. Where possible the Syndic will
notify such owners by registered letter before any such action is taken. If the
urgency of the situation does not allow that time, the Syndic has the right to
enter such an apartment, and carry out whatever work is needed at the expense of
the owner.
Harmony of the Building
The harmony and effectiveness of any Co-Propriété depends crucially on
successful communication between the Syndic and owners, as well as successful
management of the common parts of the building. Replacing broken lights,
ensuring clean and tidy garbage collection, good maintenance of common part
gardens, effective functioning of lifts and garage doors and above all regular
cleaning are minor issues in themselves but major sources of dissatisfaction.
This is normally the function of a Conseil Syndical (CS) or Management
Committee of Owners. Owners from amongst their members elect the CS. At the
AG two of these normally act as President of the Meeting and Scrutineer of the
Votes, with the Syndic acting as Secretary of the meeting.
The CS has no executive authority but acts as adviser to the Syndic, and as
the main communication link between owners and Syndic. In certain
circumstances, individual members of the CS also act as agents for the Syndic,
taking specific responsibility for overseeing the cleaners of the building,
gardeners etc. Members of the CS are elected at the AG.
Choice of Syndic - Amateur or Professional
Any building with multiple apartments needs a Syndic, but the Syndic does
not have to be a professional. It can be one of the owners. The main law
governing Co-Propriétés is that of 10th July 1965 as amended by that of 13th
December 2000. Any Syndic, professional or amateur, requires a full
understanding of these laws since the Syndic carries considerable responsibility in terms of the law
and third party insurance liability.
The job of a Syndic is, generally, a thankless task - Syndics get more
brickbats than bouquets! Naturally, it is also one that requires much
bureaucratic paperwork. Owners do not like to pay for this, so Syndics often
under-estimate their fees, and make up for this by over-charging on services and
necessary maintenance and repair work to the building.
Bad or inefficient Syndics are more often than not the fault of an inadequate
CS. Buildings need regular maintenance and good buildings have
owners who are willing to devote time and money to the protection of their
investment.
Pricing depends upon the complexity of the building, its immediate problems,
and the anxiety of a Syndic for extra work, it is unlikely with the paperwork
involved that any Syndic can cover costs at a fee of less than an annual Euro100
to150 per apartment.
Bringing About Change
Owners who are dissatisfied with their building should remember that they are
in France - the country of "direct action" and "liberté,
égalité et fraternité" so:
- Canvass your neighbours' views on the running of the building. Identify the key complaints, those of your neighbours who will support you
and, even more important, those who will work with you
- Approach the CS informally with these complaints, and your suggestions for
change and improvement. Suggest that some, or all of you, be co-opted onto the CS with the
intention of being elected at the next AG, replacing or adding to the
existing CS.
- If the existing CS will not resign, nor cooperate, write officially to
the Syndic requesting that the enclosed list of owners be proposed for
election as the CS at the next AG. Should this request not be on the
proposed agenda when distributed, send a further registered letter within
the 6 days allowed after the receipt of the agenda.
- Ensure that your supporters either turn up at the AG, or send in
their proxies. Remember that no one single owner can represent more than
three others at an AG - but also that a proxy for an owner does not have to
be an owner him/herself. Ensure that the Syndic registers both your own
attendance and your proxies at the start of the AG.
- Voting for members of a CS is a simple majority of owners present and
represented.
- With the new CS in place, meet the Syndic to discuss your complaints
about the running of the building, and your suggestions for change. The
Syndic cannot agree to any major expenditure not approved by the AG, but can
exceed the approved budget by not more than 10% for items of immediate
importance.
- Neither owners nor Syndic are keen on more than one AG a year, so
improvements involving money will have to wait for a year. In this time, the
CS and Syndic can get to know each other, identify problems and
decide whether they can work together.
- If the CS decides that it cannot work with the exiting Syndic, the
ultimate sanction is replacement. A new Syndic can only be appointed at
an AG.
- The old Syndic needs to agree to resign before this happens, and
negotiating the terms of such a resignation is a function of the CS.
Depending on the length of the contract, this can be an expensive process.
- Being a Syndic is as much a matter of practicality as theory so, before a
CS chooses a new Syndic, they should ask for references from the owners
of a Co-Propriété that the potential Syndic manages. Additionally, they
should check the computerised accountancy system in use. This needs
to show at a touch of a button that state of the accounts and particularly
arrears of service charges, cash in hand and immediate and expected
liabilities.
If this sounds like a lot of work, it is. But the value of your investment is your responsibility.
Copyright © Russell Taylor 12 October 2002
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