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What is the purpose of the work fund set up in condominiums?

Verified 17 June 2020 - Directorate for Legal and Administrative Information (Prime Minister)

Condominiums must set up a work fund to anticipate and finance future work expenses, with exceptions. This fund is supported by a mandatory annual contribution paid by each co-owner. The trustee must open a specific account to make the contributions. The use of the sums must be voted by a majority of all co-owners. The sums paid cannot be recovered by a co-owner who decides to sell his lot.

The works fund is used to anticipate and finance the expenditure on compulsory or agreed work by the general meeting of the joint owners outside the estimates..

The syndicate of co-owners must establish a work fund after a period of 5 years from the date of delivery of the building.

However, this fund is not mandatory if the building has less than 10 condominium lots and that the syndicate of joint owners shall decide by a vote at unanimous vote not to implement it.

It is also not mandatory where the global technical diagnosis (GTD) shows no need for work for the next 10 years. The exemption is only valid for 10 years.

The works fund shall be financed by a compulsory annual contribution paid by each co-owner on the basis of the tenths (value of each lot) provided for in condominium settlement..

The works fund must represent at least 5 % of the estimated budget of the year.

The trustee must open a specific account to make the contributions. This account must be different from the current account.

The use of funds paid into the works fund must be voted on at absolute majority of co-owners..

Funds paid into the works fund cannot be recovered by a co-owner who sells his condominium lot..