- Definition of terms
- Advances or working capital in co-ownership
- Provisions on expenses
- Provisions for exceptional expenses
- The provision for the safeguarding of buildings
- Special provisions for future work
In the context of a co-ownership, the trustee may request the co-owners to pay advances and provisions on charges in accordance with the terms and conditions previously fixed. Here are the different payments that may be required.
Definition of terms
First of all, and before going into the heart of the subject "The payment of advances and provisions on co-ownership charges", it is important to clarify the terms "charges", "advances" and "provisions".
- The charges are the current expenses incumbent on the co-owners according to the share calculated on the value of the lots they own.
- Provisions on expenses represent work not included in the estimated budget, such as conservation work or maintenance-free common equipment.
- Advances are funds intended to constitute reserves in anticipation of the estimated budget voted in general meeting. In case of sale of a property, the advances will be refunded by the co-ownership while the provisions will be refunded pro rata temporis by the buyer of the lot (article 6-2 of the decree of March 17, 1967).
Advances or working capital in co-ownership
This amount, which must not exceed 1/6 of the estimated budget, is determined by the co-ownership regulations. This reserve of money can also be defined within the framework of a general meeting of co-ownership. The sum is paid by the trustee at the time of sale of the property.
Provisions on expenses
This payment is equal to 25% of the estimated budget voted. It is intended for expenditure corresponding to the estimated budget. The trustee may require such payment from the first day of the current quarter (or another specified term as a co-ownership AG).
Provisions for exceptional expenses
The amount of these expenses is fixed during the general meeting of co-owners. It is also the latter who determines the date on which the sum in question is due. Expenditures included in this category include work intended for maintain or preserve the building and interventions on the equipment (except the interventions included in the maintenance contract).
The provision for the safeguarding of buildings
Faced with an urgent situation and to undertake work necessary to safeguard the building, the trustee asks for a provision. Its amount must not be greater a third of the estimate of work voted at the GA.
Special provisions for future work
Finally, mention must also be made of the provisions to cover works that could become indispensable within a period of three years, but the execution of which has not yet been the subject of a decision. It is up to the trustee to submit the decision on the provisions to the GA of co-ownership. It must do so as soon as it is designated and at least once every 3 years in accordance with Article 18 indent 5 of the Law of 10 July 1965.
In all cases, it is the general assembly that decides how the funds raised are placed and allocated to the co-ownership.
Learn more about co-ownership work and fundraising.