Buying a flat in co-ownership: syndic, charges and documents

The basic deed and the co-ownership rules

Under article 3.84 of the Civil Code, a building divided into units must be governed by a basic deed (acte de base) and co-ownership rules (règlement de copropriété), as well as internal house rules (règlement d’ordre intérieur).

• The basic deed divides the building into entities (flats, cellars, parking spaces). It sets the shares (quotités), that is, the share of each unit, which is used to calculate the contribution to common costs. It is transcribed at the mortgage office, according to notaire.be.
• The co-ownership rules form part of the basic deed. They govern the upkeep of the building, how the general meeting works and the rules applying to the syndic (appointment, powers, length of the mandate).
• Together, they form the by-laws (statuts) of the building. They are binding on you as soon as you become the owner of a unit (article 3.93).

Read above all the division of charges and the voting rules. Your notary analyses them with you.

The general meeting

The general meeting brings together all the co-owners. Tenants do not vote at it. The rules must state the annual 15-day period during which the ordinary meeting is held (notaire.be).

The majorities depend on the decision. Remember three benchmarks:

• two thirds of the votes for works affecting the common parts (article 3.88; notaire.be);
• four fifths for other changes to the by-laws, including the division of charges (article 3.88);
• unanimity to change the division of the shares (article 3.88).

An irregular, fraudulent or abusive decision can be challenged. According to notaire.be, the time limit is 4 months from the date of the meeting.

The syndic

The syndic is appointed and dismissed by the general meeting. According to notaire.be, the syndic manages the day-to-day running of the building, holds the funds, convenes the meeting, writes the minutes and carries out the decisions. The mandate lasts 3 years at most, renewable, and a written contract sets out the syndic’s tasks.

For a buyer, two useful reflexes: check how long remains on the syndic’s mandate, and read the latest minutes to see whether the building is well managed. From 20 units (excluding cellars, garages and parking spaces), a co-ownership council must also oversee how the syndic carries out their tasks.

Working capital fund and reserve fund

These are two different accounts, held in the association’s name. The law requires them to be placed in separate accounts (article 3.86).

• The working capital fund (fonds de roulement) advances the regular common costs: caretaking, electricity for the common parts, lift, administration. Each co-owner pays an advance, in proportion to their share, every month or every quarter (notaire.be).
• The reserve fund (fonds de réserve) prepares for exceptional expenses: renewing the lift, refurbishing the façade, entrance doors. The annual contribution may not be less than 5% of the ordinary common charges of the previous financial year. The association must set up this fund no later than five years after provisional acceptance of the common parts. A four-fifths majority may decide not to set it up (article 3.86, § 3).

Find out the amount of both funds before signing. A well-stocked reserve fund limits the risk of an exceptional call for funds. An empty reserve fund, with a roof to be redone, means a bill is on its way.

What the notary asks the syndic before the sale

Article 3.94 of the Civil Code organises the passing on of information. Before the contract is signed, the buyer receives, through the notary, the estate agent or the seller, the items the syndic provides within fifteen days on simple request:

1. the amount of the working capital fund and the reserve fund;
2. any arrears owed by the seller;
3. the status of calls for funds for the reserve fund decided before the transfer;
4. pending legal proceedings and the amounts at stake;
5. the minutes of the meetings of the last three years and the statements of charges for the last two years;
6. a copy of the latest approved balance sheet.

For the sale itself, the notary writes to the syndic by registered letter to find out also about preservation, maintenance or repair expenses decided before the transfer but claimed after it, the calls for funds approved, the costs of acquiring common parts and certain debts arising from disputes. If the syndic does not reply within thirty days, the notary informs the parties.

Within thirty days of the notarial deed (acte authentique), the notary informs the syndic of the date of the sale and the identity of the new owner.

Charges: who pays what between seller and buyer?

Here are the basic rules of article 3.94 and of notaire.be. The sale agreement (compromis) can adapt them: read it with the notary (see also the sale agreement).

• Ordinary charges: you pay them from the moment you can use the common parts.
• Seller’s arrears: these remain payable by the seller. The notary withholds them from the sale price.
• Expenses decided before the sale but claimed after it (works, costs, disputes): unless otherwise agreed, the buyer bears them. So negotiate a clear clause if major works have been voted.
• Working capital fund: no settlement between you at the deed. The syndic calculates the seller’s share, deducts the charges due up to the sale, returns the balance to the seller, and asks you to replenish the fund (notaire.be).
• Reserve fund: it belongs to the association. The seller does not get it back, unless the compromis provides that you reimburse their share (notaire.be).
• Costs of passing on the information: these are payable by the seller (article 3.94, § 4).

Notaire.be advises the seller to ask for the amount of the reserve fund before putting the property on the market, to inform the buyer and set the price.

Which professional to consult

• A notary, to read the by-laws and request the information from the syndic.
• The building’s syndic, for the minutes, statements of charges and the budget.
• An architect or a building expert, if the building is old and major works are looming.

For the role and fees of the notary, see the notary.