Working fund set up in condominiums

The works fund is a reserve of money created to finance future work in condominiums.

The establishment of this fund shall enable:

• better plan for building maintenance,
• anticipate significant expenses for the condominium in case of work to be done in the common parts of the building.

The works fund will thus be used for works not included in the provisional budget, which are imposed by the regulations or voted at the general meeting.

The works fund is used to finance expenditure arising from:

• Preparation of the draft multiannual work plan (MWP) and, where appropriate, the comprehensive technical diagnosis (GTD),
• Implementation of the work provided for in the TPP adopted by the General Assembly of the Co-owners,
• Urgent work decided by the condominium trusteenecessary for the preservation of the building (i.e. its preservation in good condition),
• Work necessary to safeguard the building, to preserve the health and safety of the occupants and to achieve energy savings, not provided for in the TPP.

The general meeting may decide to allocate all or part of the sums deposited on the work fund to the financing of these expenses.

The use of these funds will, however, take into account the existence of special common areas or allocation keys charges imposed by the co-ownership regulation. This distribution makes it possible to avoid co-owners who are not concerned by the work participating in it by using all or part of the work fund.

The joint owners' union must establish a building fund when the building is intended for total or partial residential use.

This fund must be set up at the end of a 10-year period from the date of reception construction work on the building.

The obligation to set up a work fund concerns:

• Since 1^er january 2023, the syndicate of co-owners comprising more than 200 lots for use in dwellings, offices or shops,
• Since 1^er january 2024, the syndicate of co-owners comprising a number of lots included between 51 and 200 lots for use in dwellings, offices or shops,
• Since 1^er january 2025, the syndicate of co-owners comprising up to 50 lots for use in dwellings, offices or shops.

Since the works fund is compulsory, it is not necessary to vote on its creation at the general meeting.

To set up the works fund, the union of co-owners will only have to vote at the annual general meeting:

• the opening of a specific bank account dedicated to the payment of contributions to the works fund,
• and the annual amount of the works fund, as a percentage of the estimated budget.

This resolution shall be adopted by an absolute majority of Rule 25.

If the decision is not approved but has received 1/3 of the votes, a new vote may be held immediately. This resolution will then be voted on by a simple majority of Rule 24.

The working capital shall be financed by a compulsory annual contribution.

Each co-owner must contribute to the mandatory annual contribution.

The joint-ownership trustee thus establishes a special call for funds for the works fund, in accordance with the same procedures as those decided by the general meeting for the payment of the provisions of the provisional budget.

In principle, the amount owed by the co-owners is calculated on the basis of their share common charges.

No. Amounts paid into the work fund may not be recovered by a co-owner who sells his condominium lot.

Indeed, the sums paid are attached to the lots and, as soon as they are paid, enter definitively into the assets of the syndicate of the co-owners.

However, the buyer may decide to pay the seller an amount equivalent to these sums in addition to the sale price of the lot.

The law does not provide for any penalty for failure to set up a works fund or a rate lower than the legal minimum.

However, in such a case, a co-owner who is absent or who has voted in favor of the rejected resolutions may refer the matter to the court of law the location of the immovable in order to obtain annulment of the decision rejecting the creation of a works fund or fixing a lower rate.

If the non-establishment of the work fund is due to an error or omission on the part of the condominium trustee, he must be contacted to report this omission and ask him for explanations.

If the condominium trustee does not act favorably, he must then send him a formal notice (by registered mail with acknowledgement of receipt) to put on the agenda of the next general meeting of the condominiums the establishment of the work fund.

If the trustee refuses, an appeal must be made to the court of the location of the immovable to obtain the compulsory inclusion of the constitution of a works fund on the agenda of the general meeting.

The professional trustee's mandate may also be canceled if he does not establish the work fund within 3 months of his appointment.

It is recommended that you be accompanied by a lawyer for all these procedures.