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Co-ownership in France

Co-ownership in France

04/10/2021
Are you a new co-owner of real estate in France or are you about to become one? You should know that this acquisition has many particularities. Indeed, the new co-owner must understand that they have rights over their home and private areas, but that they also have not only obligations towards htheir neighbours, but also duties because they must be involved in the management of this community that the co-ownership represents.


Co-ownership is defined by article 1 of the law of 10 July 1965
The creation of a co-ownership is compulsory when the ownership of a property is divided between at least two people, with the rare exception of unsafe buildings. It is therefore not the "quality" or value of the building or residence that creates the fact of co-ownership, but simply the number of owners.


Who are the parties involved in the co-ownership?
  • The syndicate of co-owners: The syndicate of co-owners is automatically created as soon as the ownership of a building is divided between at least two people. This body is therefore composed of all the co-owners. Tenants are therefore not concerned. From a legal point of view, it is a legal person with a legal personality.
  • The syndic of co-ownership: The syndic is the agent of the syndicate of co-owners, and as such is responsible for the management and administration of the co-ownership. The syndic is therefore liable for the execution of his mandate.
  • The advisory council: This is a group of voluntary co-owners elected at the general meeting. It assists the syndic in its tasks, controls its management of the accounts and raises the requests of the co-owners. The advisory council is chaired by a co-owner elected as president.
 
What are the responsibilities of the various participants?
The syndicate of co-owners: Its missions are defined by law 65-557 of 10 July 1965, by the decree of 17 March 1967, then by the ALUR and ELAN laws.
The syndicate is responsible for ensuring that the provisions of the building's co-ownership regulations are respected by the entire co-ownership, as well as any decision voted at the general meeting. Generally speaking, the managing agent ensures the management, conservation and general good condition of the common areas.
In terms of accounting and financial management of the co-ownership, the managing agent draws up the provisional budget which he submits to the vote of the general meeting of co-owners, and then proceeds to call in the provisions.
He is required to keep the archives of the syndicate of co-owners and to take out an insurance policy against the risk of civil liability for which the syndicate of co-owners is responsible.

The advisory council:
  • It controls the management of the syndicate of co-ownership, particularly on the following points
  •  Accounting of the syndicate of co-ownership
  •  Distribution of expenses
  • Conditions under which contracts are concluded and executed
  • Drawing up the provisional budget and monitoring its implementation.
  • The body is also to be consulted on the tendering of contracts whose cost exceeds an amount set by the general meeting of co-owners, and for the conclusion of contracts.
  • It can assist the syndic in the choice of companies for the day-to-day maintenance of the building or for the execution of works decided by the general assembly.
 
The syndicate of co-owners: This is an assistance and consultation body, its power is mainly exercised at the general meeting, which must be held at least once a year.
During this general assembly, the syndicate of co-owners votes mainly on
  • The provisional budget of the co-ownership for the coming year.
  • The approval of the annual accounts
  • The work to be carried out in the building
  • The supplier contracts to be signed or terminated for the building
  • The amount of the work fund introduced by the ALUR law
  • Any modification of the co-ownership regulations
  • The appointment of the syndic in the event of a change of syndic
  • The election of the members of the trade union council.


What are the rights and duties of co-owners? 
The co-owners may freely dispose of the private and common areas of the building, provided they respect the provisions of the co-ownership regulations, the rights of the other co-owners and the purpose of the building.



The use of private parts
Each co-owner has, with their lot, a private part (flat, cellar, garage...) and a fraction of the common parts (land, courtyard, load-bearing walls, roof...). A co-owner is free to use their private part as they wishe, provided that they respect the co-ownership regulations, comply with the purpose of the building and do not cause abnormal neighbourhood disturbances to the other co-owners.
Thus, a co-owner may sell their lot, give it away, occupy it himself or rent it out. They may also combine it with another lot belonging to them, without seeking prior authorisation from the general assembly. The owner may also freely divide their lot, but only if this operation is not prohibited by the condominium regulations or contrary to the purpose of the building.
Each co-owner may change the layout of the rooms in their flat, install partitions, repaint their premises, change the covering of the walls, ceilings or floors, install cupboards and sanitary appliances, redo the electrical installation, etc. They may therefore carry out all the transformations required for the construction of the apartment. They may therefore carry out any alterations or improvements they deems necessary, provided that they do not cause any damage to the common parts of the building.
For example, the owner of two superimposed lots may, without prior authorisation, drill through the floor in order to connect them by an internal staircase, provided that this floor is a private part (an authorisation from the general assembly is required if the floor is a common part).
The allocation of lots can also sometimes be modified, if the modification is not prohibited by the co-ownership regulations or by the destination of the building. If this is prohibited, it is possible to request authorisation from the general meeting of co-owners.

Note: the condominium may decide, by an absolute majority under article 25, to carry out work of collective interest on the private portions of the building (for example, replacing all the windows in the building to improve thermal insulation). Once voted, the co-owners cannot oppose the work.


Use of common areas
All co-owners have the same rights to the common areas or common facilities designated by the co-ownership regulations. However, the by-laws may provide for the existence of special common areas or common areas whose use is reserved for one or more co-owners only.
The special common parts are mainly provided for when there are several buildings. The shell of each building and its equipment (lift, heating) constitute special common parts for which only the co-owners of that building share the expenses.
Common areas may also be reserved for the use of a single co-owner. In fact, the rules may provide that a co-owner will have exclusive use of a common area. This is most often a terrace, garden or courtyard, which is only accessible from a specific lot in the condominium. This exclusive right of enjoyment is, in principle, perpetual and attached to the condominium lot and not to the condominium owner (which means that in the event of a sale, the right of enjoyment is passed on to the buyer).
A private right of enjoyment over the common areas can also be acquired by prescription, i.e. when a co-owner has used a common area on a personal and exclusive basis for at least 30 years.
As with private portions, each co-owner may freely use the common portions of his building. On condition that they respect the same rules, i.e. that they comply with the purpose of the building, do not cause abnormal neighbourhood disturbances and take into account the nature and purpose of the common parts. For example, the co-ownership rules often prohibit co-owners from cluttering up the corridors. And even when they are silent on this subject, judges consider that the cluttering of common areas by a co-owner infringes on the rights of use of other occupants.


Respect for the co-ownership rules
The freedom of co-owners must be used in accordance with the provisions of the co-ownership regulations.
The regulations may provide that windows and shutters, although classified as private, must all be of the same colour, material or model. Such a clause, which aims to preserve the visual harmony of the building, must be respected.

In addition, the co-ownership regulations may prohibit changes to floor coverings to avoid noise pollution.

Respecting the purpose of the building
The co-owners must respect the "destination of the building". This notion is very important in matters of co-ownership. Indeed, it makes it possible to limit the rights of co-owners over their private portions, such as, for example, the exercise of a noisy activity. However, this notion, provided for by the 1965 law, is unfortunately not clearly defined.
The destination of the building must be considered in the light of all the constituent acts of the co-ownership (co-ownership regulations, descriptive statement of division of the building, decisions of the general meeting amending these acts, etc.) and the technical characteristics of the building (its architecture, the quality of its construction, its residential environment, etc.).
In the event of a dispute, the judges define the destination of a building on a case-by-case basis and analyse all the elements that prompted the co-owners to buy a lot in the building.

The peace of mind of the other co-owners
The use of a condominium lot must not be a source of nuisance or abnormal neighbourhood disturbance for the other occupants of the building.
Often, the condominium by-laws include clauses concerning the tranquillity of the building. For example, they may prohibit barbecuing on balconies, parking vehicles in the common courtyard or storing objects in the common areas.
However, even if it does not contain any indication, co-owners can be sanctioned for their behaviour. In this case, it is the judge who assesses, on a case-by-case basis, whether the disturbance is abnormal or not.

Note: although the tenant is not a member of the co-ownership, he is obliged to respect the clauses of the co-ownership regulations relating to the tranquillity of the building.



Sources: https://leparticulier.lefigaro.fr/jcms/p1_1520883/les-droits-et-obligations-des-coproprietaires#:~:text=A%20copropri%C3%A9taire%20is%20free%20of%20neighbourhood%20to%20other%20copropri%C3%A9taires. 
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