Co-ownership and the owners' association

An owners' association is the association of co-owners of an apartment building. As soon as a building has several owners and common areas, an owners' association is automatically set up. Every owner is a compulsory member.

Yes. Every association of co-owners is legally required to appoint a syndic. The syndic manages the shared finances, carries out the decisions of the general meeting and represents the association legally.

The syndic can be a professional manager or one of the co-owners.

No. The choice between a professional syndic and an owner-syndic often depends on the size and complexity of the building. In larger and more complex buildings a professional syndic is strongly recommended, as they usually have more expertise and experience for complex management.

In smaller buildings with limited common areas, a co-owner can act as a voluntary syndic. That can save costs, but it also takes time and knowledge, and a lack of expertise can be a pitfall.

Yes, but under clear conditions. The owner of an investment property may pass common costs on to their tenants, provided this is explicitly included in the lease and it concerns costs that may legally be charged to the tenant.

These are usually costs related to the use of the building, such as electricity of the common areas, cleaning service, maintenance of the lift or garden, or minor repairs. Structural repairs or major investment works remain the owner's responsibility.

Where there is no official owners' association or deed of base, the owner must apply an objective and defensible distribution key themselves, for example by surface area, use or number of occupants. The statement must be transparent and verifiable.

On a sale, outstanding common costs and the working capital are settled pro rata on the date of the notarial deed, usually through the notary. The notary also requests information from the syndic about any debts of the seller to the association, ongoing or planned works, decisions of the general meeting and the state of the reserve fund.

For the buyer it is also essential to check before the compromise how large the existing reserve fund is. A healthy reserve fund limits financial surprises; a low reserve fund can mean substantial extra contributions when future works arise.

No. Only owners are members of the association and may vote at the general meeting. The tenant must, however, comply with the co-ownership rules, including the internal rules (ROI) where these apply in the building.

Not all decisions are taken by the same majority. Ordinary decisions usually require 50% + 1. For important works a 2/3 majority often applies. Far-reaching changes may require 4/5 or unanimity, depending on the type of decision.

Yes. An owners' association is legally required to build up a reserve fund. This is provided for in co-ownership law, included in Book 3 of the Civil Code, and serves to finance future major works (such as roof or facade) so that owners are not suddenly faced with high one-off contributions.

In principle a minimum annual build-up is provided for. The general meeting can, however, decide by a 4/5 majority not to build a reserve fund or to build a lower one. That option exists regardless of the number of units. In a building with two owners this means both owners must agree.

Under co-ownership law the date of the general meeting's decision is in principle decisive. The co-owner who owns the property at the moment the general meeting approves the works or the extraordinary contribution is legally liable to pay, even if the actual call for funds or invoice only follows later.

In concrete terms: if works or a capital call were approved before the notarial deed, they are in principle borne by the seller. If they are approved after the deed, they are borne by the buyer.

The parties can deviate from this contractually in the compromise. That is why it is important to have recent general meeting reports and the financial situation of the association analysed before signing.

Between the compromise and the notarial deed the seller remains the legal owner and therefore a member of the association. If the seller gives the buyer a proxy to vote, the buyer legally votes on behalf of the seller. That proxy in itself changes nothing about the main legal rule on who is legally liable.

In practice, however, you can set this out clearly in the compromise. It is then often explicitly stipulated that all decisions taken between the compromise and the deed, and their financial consequences, are borne solely by the buyer.