Co-ownership is a specific form of collective ownership that is very common in France. It primarily concerns residential buildings, but also certain office or commercial complexes. Understanding this system is essential for anyone buying, renting, or managing a dwelling in a multi-family building.
Definition and General Principles
Co-ownership refers to a building (or group of buildings) belonging to several people, called co-owners, who each own:
- A private portion: a space that belongs exclusively to them, such as an apartment, a cellar, a garage, or a commercial space;
- A share of the common areas: these are the elements of the building allocated for the use of all or several people (examples: roof, staircase, elevator, hallways, garden, etc.).
This system is strictly regulated by the law of July 10, 1965, and the decree of March 17, 1967, which are regularly updated to reflect social, environmental, and technical developments. As soon as a building is divided between at least two owners with common areas, the co-ownership regime automatically applies, even in the absence of initial formalization.
Co-ownership Management Bodies
The management of a co-ownership is based on three key players, each with clearly defined roles.
a. The Co-owners’ Association
This group of co-owners constitutes a legal entity. The association makes strategic decisions related to the building’s operation, particularly at general meetings:
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Approval of the accounts and budget,
- Initiation of work (renovation, upgrading, insulation, etc.),
- Appointment or dismissal of the property manager.
The association is collectively responsible for the preservation of the building and can be held liable in the event of negligence.
b. The Co-ownership Manager
The property manager is responsible for the administrative, technical, and financial management of the building. Its main responsibilities are:
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Organizing general meetings,
- Maintaining the accounts,
- Ensuring proper building maintenance (cleaning contracts, elevator, heating, etc.),
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Representing the syndicate before third parties (courts, businesses, insurance, etc.).
Types of property managers:
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Professional: mandated company or firm,
- Non-professional (volunteer): often a motivated co-owner,
- Cooperative property manager: collegiate structure managed directly by a strengthened property management board.
c. The Property Management Board
Composed of co-owners elected at the general meeting, the property management board plays an advisory and supervisory role. It:
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Acts as a liaison between the property manager and the co-owners,
- Oversees financial and technical management,
- Prepares issues submitted to the general meeting.
Although it does not have direct decision-making power, its opinion is often decisive in the smooth running of the co-ownership.
General Meeting (GM)
The GM of co-owners is the decision-making body. All co-owners are convened at least once a year.
The meeting votes on:
- The projected budget and approval of the annual accounts,
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Work to be carried out (maintenance, compliance with standards, improvements, etc.),
- The appointment of the property manager,
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Any disputes or amendments to the regulations.
Decisions are made according to different types of majorities (1965 law):
- Simple majority (Article 24): for day-to-day management actions,
- Absolute majority (Article 25): for more binding decisions,
- Double majority (Article 26): for important actions,
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Unanimity: for certain major modifications (e.g., change of purpose of common areas).
Co-ownership expenses
Co-owners contribute to the building’s maintenance and operating costs. There are:
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General charges: These cover the maintenance of common areas (cleaning, lighting, insurance, security, etc.),
- Special charges: These cover specific common facilities such as central heating, elevators, or video surveillance.
These charges are distributed based on the share held by each unit (often expressed in thousandths), as specified in the condominium regulations.
The Condominium Regulations
The condominium regulations are a fundamental document, both legal and contractual. They:
- Define the boundaries between private and common areas,
- Establish the rules of operation and community life (noise, pets, use of balconies, etc.),
- Detail the distribution of charges between co-owners,
- Specify the rights and obligations of each.
This document is binding on everyone, including tenants. It is attached to all sales deeds and can be amended at a general meeting subject to majority voting.
Issues and Best Practices
Why understand co-ownership?
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To avoid disputes,
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To actively participate in community life,
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To anticipate work and control costs.
Best practices for co-owners
- Carefully read the bylaws and general meeting minutes,
- Get involved in the board of directors or attend general meetings,
- Pay your expenses on time,
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Promptly report any problems (leaks, breakdowns, incivility, etc.).
Conclusion
Co-ownership is an organizational structure based on solidarity and collective responsibility. Although sometimes perceived as complex, it allows for the effective management of common property and ensures a harmonious living environment… provided that each co-owner plays their part.
