The Content Of The Article:

The ALUR law of March 24, 2014 provides for better regulation of the fees charged by the trustees and therefore greater transparency for the co-owners. The new trustee contract is proof of this. How is it built and for what purpose? Focus.

What is a trustee contract?

The trustee of condominiums is free to fix his fees. These appear in a two-part contract:

The first part presents current management fees such as:

  • Maintenance of the building and dedicated staff
  • Organization of general meetings
  • Administration and general accounting
  • Subscription to an insurance policy

The second refers to statements that are not part of the first part and are therefore considered exceptional. For example:

  • Work management
  • Reminders for unpaid bills
  • The organization of extraordinary general meetings

The new standard contract: what objective?

This contract sometimes lacks clarity and is difficult to understand for the co-owners as the clauses are multiple and sometimes even abusive.

Indeed, current management fees are subject to a flat rate, which is not the case of special services that generate commissions and therefore often increase the bill.

The new standard trustee contract aims to further limit the trustee's fields of action and of define more precisely the content of the two components that compose it.

The trustee contract in practice

The contract of trustee is voted at the general meeting of co-ownership. He must mention the following elements:

  • Effective date, term and expiry date
  • Fees divided into two categories: day-to-day management fees and exceptional services
  • The different tasks that the trustee

If in certain particular cases, it is possible to revoke it before maturity, the law provides for the signing of a trustee contract for a period not exceeding 3 consecutive years, but renewable without limit. It is nevertheless advisable to limit oneself to one year and this in order to revise the contract and to put the trustees in competition on each anniversary date.

In any case, do not hesitate to contact your trade union council or association of co-owners who can answer your questions and remove your doubts.

Video Instruction: Trusts - Part 1 - the Trustee, the Settlor and the Beneficiary - white rabbit trust