Works fund in a French co-ownership: 5%, 2.5% and sale

Which buildings are concerned?

The obligation applies to all buildings intended wholly or partly for residential use, regardless of the number of lots (service-public.gouv.fr, F34026). It starts ten years after the date of completion of the construction works (art. 14-2-1, I). The version of the article in force since 1 January 2023 provides no exemption based on the size of the co-ownership.

As the fund is compulsory, its creation does not have to be voted on. The general meeting votes on opening the dedicated bank account, once only, then on the amount of the contribution each year (F34026). This account is separate and interest-bearing, in the syndicat’s name; the interest stays with the co-ownership, and the syndic (building manager) must send the conseil syndical (owners’ committee) a copy of the statements as soon as it receives them (F34026).

What is the works fund for?

According to article 14-2-1 and the official fact sheet, it finances:

1. drawing up the draft multi-year works plan and, where applicable, the diagnostic technique global (DTG, building condition survey);
2. the works set out in the adopted PPT;
3. urgent works decided by the syndic to safeguard the building;
4. works to safeguard the building, protect occupants’ health and safety and save energy that are not provided for in the PPT.

It cannot pay for routine maintenance, which falls under the annual budget. Its use takes account of the special common parts and the cost-sharing keys of the règlement de copropriété (building regulations), so that co-owners not concerned by the works do not pay for them (F34026).

The minimum contribution

Source: 1965 Act, art. 14-2-1, I; service-public.gouv.fr (F34026).

The general meeting may vote a higher amount, by a majority of the votes of all co-owners (art. 14-2-1). Each owner pays according to their share of common charges, through a special call for funds at the same frequency and with the same due date as the budget instalments, even if they do not live in the building. An unpaid contribution is recovered like an ordinary charge (F34026).

Example: annual budget of €40,000, adopted PPT providing for €300,000 of works. The floor is the higher of the two amounts: 2.5% × €300,000 = €7,500, against 5% × €40,000 = €2,000. The annual contribution will therefore be at least €7,500, i.e. €1,125 for a lot of 150/1,000ths.

Suspension. The general meeting must vote on suspending contributions when the fund exceeds the amount of the annual budget. If a PPT has been adopted, it does so only if the fund also exceeds 50% of the cost of the works in the plan (art. 14-2-1, II).

The link with the multi-year works plan

Since 1 January 2025, a draft PPT is in principle compulsory, in mainland France, for all buildings intended wholly or partly for residential use whose completion dates back more than 15 years, whatever the number of lots (F36760); in Guadeloupe, French Guiana, Martinique, La Réunion and Mayotte, the obligation applies from 1 January 2028 (ANIL). The draft lists the necessary works and proposes a 10-year schedule; the plan is updated every 10 years (art. 14-2). Its adoption is voted by a majority of the votes of all co-owners (F36760).

Adopting a PPT has a direct effect on the fund: the minimum contribution becomes 2.5% of the cost of the planned works, without falling below 5% of the budget (ANIL). A co-ownership whose DTG shows no need for works within ten years is exempt from the PPT (art. 14-2); it then stays at the 5% floor. To go further, see our guide on rénovation en copropriété (renovation in a co-ownership).

On a sale: what happens to the sums paid

The sums paid are attached to the lots and pass definitively, as soon as they are paid, into the syndicat’s assets; they are not refunded (art. 14-2-1, III). The buyer may agree to pay the seller an equivalent amount, on top of the price of the lot (same article).

On the buyer’s side, where there is a fund, the seller must disclose the amount of the share attached to the lot and the last contribution paid (F37190). This information is part of the file to read before signing: see our guide acheter en copropriété (buying in a co-ownership) and the one on charges de copropriété (service charges).

No automatic penalty. The law penalises neither the absence of a fund nor a rate below the minimum. A co-owner who was absent or voted for the rejected resolutions may ask the tribunal judiciaire (civil court) to annul the decision; if the omission is the syndic’s, a formal notice by registered letter to put it on the agenda of the next assemblée générale (owners’ general meeting) is possible (F34026).

Which professional to consult

On a sale, the notaire (notary) drafts the clause by which the buyer, if they agree, reimburses the share of the fund attached to the lot. The agent immobilier (estate agent) gathers with the seller the financial information to be handed over before the promesse (preliminary contract). The diagnostiqueur (property surveyor) carries out the energy surveys on which the draft multi-year works plan is based.