The ALUR law (law no. 2014-366 of March 24, 2014, for access to housing and urban renewal) introduced two key changes to the rules governing condominium management contracts. These changes concern, firstly, the form and content of the contract, and secondly, the condominium manager's remuneration.
We therefore draw your attention to Decree No. 2015-342 of March 26, 2015, which defines the standard condominium management contract and the specific services provided for in Article 18-1 A of Law No. 65-557 of July 10, 1965, as amended, establishing the status of co-ownership of buildings, applicable to management contracts concluded or renewed from July 1, 2015. The
new Article 18-1 A of Law No. 65-557 of July 10, 1965, establishing the status of co-ownership of buildings, now mandates the use of a standard condominium management contract defined by decree. The decree of March 26 is issued for the application of this provision and sets out in its appendix a model contract as well as the minimum font size, which cannot be smaller than eight-point type. However, the provisions of this standard contract may be waived when the condominium association is composed exclusively of legal entities and the building is entirely used for purposes other than residential.
Article 18-1 A also establishes the principle of a fixed fee for the property manager and additional compensation for certain specifically listed services. The standard contract, as defined by Decree No. 2015-342 of March 26, 2015, which establishes the standard condominium management contract and the specific services provided for in Article 18-1 A of Law No. 65-557 of July 10, 1965, as amended, which sets forth the status of co-ownership of buildings, includes a non-exhaustive list of services included in the fixed fee, such as periodic building inspections and checks, handling insurance claims, and managing payments. Annex 2 of the decree establishes the exhaustive list of services that may give rise to additional remuneration and classifies them into six categories. Additional remuneration may thus be received for:
– services related to additional meetings and visits:
this includes the preparation, convening, and holding of additional general meetings and meetings exceeding the agreed reference time slots. It also includes organizing additional meetings with the management committee and conducting additional visits to the condominium.
– services related to the condominium regulations and the descriptive statement of division:
the decree provides for additional remuneration for the establishment or amendment of the condominium regulations following a decision by the owners' association and the publication of the descriptive statement of division and the condominium regulations, or amendments to these documents.
– administrative and logistical management services related to claims:
this includes travel to the site to implement protective measures, assistance with expert assessments, and monitoring the claim with the insurer.
– services relating to technical works and studies, the list of which is set out in Article 44 of the decree of 17 March 1967 taken for the application of the law of 10 July 1965.
– services relating to disputes and litigation (excluding debt recovery from co-owners):
the decree refers to the formal notice by registered letter with acknowledgment of receipt, the preparation of the file sent to the lawyer, the bailiff, the legal protection insurer, as well as the monitoring of the file sent to the lawyer.
– Other services:
This last category includes tasks specifically related to preparing decisions regarding the acquisition or disposal of common areas, the resumption of accounting for one or more prior fiscal years that were not approved or allocated, in the event of a change of property manager, the representation of the owners' association at meetings of an external structure (secondary association, union of associations, free association) created during the term of office, as well as at additional meetings of these same structures if they existed prior to the signing of the property management contract. The decree also covers the preparation and monitoring of the loan application taken out in the name of the owners' association, the preparation and monitoring of a grant application for the benefit of the owners' association, and the initial registration of the owners' association.
Appendix 1 (services included in the flat fee)
Appendix 2 (specific services)
Standard contract
