Co-ownership charges

Condominium expenses are used to cover expenses related to the proper functioning of the condominium.

There are 2 categories of charges:

• Expenses related to the administration, preservation and maintenance of common areas (e.g., babysitting or janitorial expenses, trustee fees, general meeting expenses, cleaning of common areas, household waste removal expenses, insurance premiums, refitting).
  These charges may be general or special. Special charges relate to special common areas or on a common part for private use.
• Loads driven by common services and facilities (e.g. district heating and hot water costs, cold water, elevator costs, TV or cable antenna installation costs, intercoms, staircase mats, security system).

It's the co-ownership rules which divides the building's expenses between these two categories.

The distribution depends on the nature of the loads.

The distribution is determined by law and by the co-ownership regulation.

Expenses related to the conservation, maintenance and administration of common areas

Distribution of principles

The costs associated with the preservation, maintenance and administration of the common areas shall be shared among the co-owners in proportion to the relative value of their lot co-ownership. This value shall be determined on the basis of the consistency, surface area and situation of the lot. It does not include the use of the batch.

All co-owners must obligatory participate in these charges, called general.

Special distribution

There are exceptions to the principle of compulsory contribution by all co-owners.

This is the case when the co-ownership regulation states:

• Of special common areas, which involves special charges distributed only between certain co-owners
• Or a specific allocation for certain lots. This case mainly concerns the common areas assigned to the use or utility of a lot (balcony, terrace, gardens etc.).

Expenses related to collective services and common facilities

Special loads are distributed according to the objective usefulness of the services and facilities for each condominium lot. Utility implies that there is a possibility of using the element or service in question.

In this case, the co-owner must contribute to the costs associated with the service or common equipment even if he does not use it for personal reasons.

If, on the other hand, a lot cannot use the common service or equipment, the co-owner must not pay a charge. The same shall apply if the item or equipment is of no use to the lot.

Expenses attributable to a single co-owner

Some charges are also attributable solely to the co-owner concerned by costs borne by the syndicate of co-owners.

These include:

• Costs of recovery of a claim (e.g. unpaid charges), which include formal notice, retry, takingmortgage or the acts of the Commissioners of Justice
• Trustee fees and expenses related to services provided to a co-owner (preparation of a dated statement, costs related to a change or the issuance of a paper document)
• Expenditure on works of collective interest carried out on private parts (e.g. energy saving works or greenhouse gas emission reduction works)
• Periodic penalty payments, fixed by lot, concerning measures or works prescribed by the competent administrative authority which were voted on at a general meeting and which could not be carried out because of the failure of the co-owner. This is the case, for example, with the penalty payments for combating lead poisoning,unwholesomeness, or buildings threatening ruin.

Each year, the co-owners vote one provisional budget at a general meeting to meet the current expenses of the building.

The amount of the estimated budget shall then be distributed among the co-owners according to their share and according to allocation keys (general or special loads).

In principle, it is the co-owner who pays the co-ownership charges. However, there are some peculiarities in some cases.

The annual vote on the provisional budget allows the co-owners to claim provisions on expenses. The trustee draws up calls for funds addressed to each co-owner.

Provisions are due on 1^er day of each quarter or the 1st^er day of the period set by the general meeting (e.g. monthly payment).

At the end of the accounting year, the trustee compares the amount of provisions received and the total amounts paid or owing by the condominium. This operation makes it possible to establish an overpayment or underpayment. The negative balance (underpayment) gives rise to an additional call for funds which will only be due after approval of the accounts by the syndicate of the co-owners. Conversely, the trustee pays the positive balance (overpayment) to the co-owners according to their share.

Change of charges: vote in general meeting

In principle, the decision to change the burden-sharing between the co-owners must be adopted at the general meeting by a unanimous vote.

However, there are 4 cases where only a majority is required:

• Works or instruments of acquisition or disposal making it necessary to modify the apportionment of the costs (same majority as that used to vote on such works or instruments of disposition). This is the case for the purchase of common parts by a co-owner or the creation of new private lots by elevation.
• Change of use of private parts (absolute majority)
• Batch Division (simple majority)
• Creation of a secondary trade union (absolute majority).

The decision to change the burden-sharing has an effect only for the future. It is not retroactive.

Modification of charges: recourse to the courts

It is possible to challenge before the court of law of the location of the immovable the distribution of the costs provided for in the condominium regulation by making a action for review charges or, where the apportionment is not in accordance with the law, a invalidity proceedings.

The trustee must ensure that the co-owners regularly settle their call for funds, corresponding to their share of loads.

In the event of non-compliance by the co-owners, it is up to the trustee to recover the unpaid charges. This is a exclusive competence of the liquidator which has broad powers of initiative in the actions to be taken.