French copropriété charges: works fund and état daté

Day-to-day charges and the works fund

Day-to-day charges cover the upkeep and running of the building; they are called as provisional payments based on the annual budget voted at the assemblée générale (owners’ general meeting). The works fund is a separate reserve for future expenditure. Under article 14-2-1, it finances:

1. the preparation of the draft PPT and, where applicable, of the diagnostic technique global (overall technical assessment of the building);
2. the works planned in the adopted PPT;
3. urgent works decided by the syndic;
4. works to safeguard the building, protect the occupants’ health and safety, and save energy that are not planned in the PPT.

It does not pay for routine maintenance, which comes under the annual budget (service-public.gouv.fr). Contributions are paid into a separate, interest-bearing bank account in the name of the syndicat (the owners’ association); the interest stays with the copropriété (1965 Act, art. 18, II).

The minimum contribution: 5% and 2.5%

The obligation applies to buildings used wholly or partly as housing, once ten years have passed since acceptance of the construction works, whatever the number of lots (art. 14-2-1, I; service-public.gouv.fr).

The general meeting may vote a higher amount by a majority of the votes of all co-owners. It must vote on suspending contributions when the fund exceeds the amount of the annual budget and, if a PPT has been adopted, when it also exceeds 50% of the planned works (art. 14-2-1, II).

Each co-owner contributes on the same basis as for budget payments, in principle in proportion to their share of common charges, even if they do not live in the building (service-public.gouv.fr).

No automatic penalty. The law provides no penalty if the fund is not set up or if the rate is below the minimum; however, a co-owner who voted against or was absent may ask the tribunal judiciaire (civil court) to annul the decision (service-public.gouv.fr).

On sale: the works fund stays with the building

The sums paid “are attached to the lots and become, as soon as they are paid, the permanent property of the syndicat”. They are not refunded to the seller, but the buyer may agree to pay the seller an equivalent amount, on top of the price (art. 14-2-1, III).

For other charges in the year of the sale (service-public.gouv.fr, F32920):

• the payable instalment of the annual budget is due from the seller;
• payments for expenditure outside the budget (works) are due from whoever is the co-owner at the time payment is called;
• the annual adjustment benefits or falls on whoever is the co-owner on the date the accounts are approved.

The parties may agree a different split in the deed, but it cannot be enforced against the syndic.

Before the promise: the financial information

No later than the signing of the promesse (preliminary contract), the seller gives the buyer, in addition to the documents on how the building is organised, financial information (CCH, code de la construction et de l’habitation (Construction and Housing Code), art. L721-2, II, 2°):

• the day-to-day and non-budget charges paid by the seller for the two financial years before the sale;
• the sums the buyer may owe to the syndicat;
• the overall statement of unpaid charges and of debts to suppliers;
• if there is a works fund, the share attached to the lot and the latest contribution paid by the seller.

If these documents are missing when the promise is signed, the buyer’s cooling-off period only starts from the day after they are provided (CCH, art. L721-3).

The état daté and its €380 cap

The état daté is drawn up by the syndic and sent to the notaire (notary) before the deed of sale, at the request of the notary or the seller (decree of 17 March 1967, art. 5). It has three parts: the sums owed by the seller to the syndicat, those the syndicat owes the seller, and those that will fall to the buyer.

Its cost is regulated: the syndic’s fees and charges for drawing it up “may not exceed an amount set by decree” (1965 Act, art. 10-1, b). Decree no. 2020-153 of 21 February 2020, in force since 1 June 2020, sets this cap at €380 inc. VAT, including where several lots are sold in the same transfer. The syndic bills the état daté to the seller; above €380 inc. VAT, you can challenge it (service-public.gouv.fr).

Which professional to consult

The notaire (notary) requests the état daté from the syndic, checks how charges are split and drafts any clause for reimbursing the works fund. The agent immobilier (estate agent) gathers, with the seller, the financial information to be given to the buyer before the promise. The diagnostiqueur (property surveyor) handles the technical part of the file provided with the promise.