When selling co-ownership lots, and more specifically when signing the deed of sale, the notary will contact the syndic to find out the seller's situation with regard to his obligations to the syndicat des copropriétaires (co-owners' association) and, more specifically, to find out whether the seller has paid all the co-ownership charges and the amount of any works he owes. If the vendor is free of any obligation to the syndicat, the syndic will issue the " article 20 certificate " (which is relatively rare in practice). If this certificate is not issued, the syndic has a right of objection on the price, in order to recover the sums owed to it, within a period of fifteen days from receipt by the syndic of a notice of transfer sent by the notary following the sale.
This information is provided by the syndic in a document called a "état daté" (dated statement) requested by the notary before the sale is completed by deed.
As regards the sums owed by the vendor to the syndicat des copropriétaires and the sums owed by the new owner, in practice there are apportionment agreements set out in the compromis or promesse unilatérale de vente. These agreements are not enforceable against the syndic and the co-ownership association, and only have effect between the parties: vendor and purchaser.
- Co-ownership charges
These charges are known as " provisions payable from the provisional budget " and correspond to the so-called current charges for which the vendor is liable, usually on a quarterly basis. Generally, these charges are payable on the first day of each quarter. As the sale takes place during the quarter, the seller has generally already paid the co-ownership charges. This is why, in practice, a sharing agreement is systematically drawn up between the vendor and the purchaser: the purchaser will reimburse the proportion of the charges corresponding to the period between the date on which he or she takes possession of the property (often the date on which the deed of sale is signed) and the end of the quarter, which the vendor has already paid. This solution is logical, as the purchaser is liable for the charges from the moment he or she takes possession of the property.
There is nothing mandatory about this distribution agreement, and the parties may well agree to another.
Regardless of the agreement chosen, it only has effect between the parties; it cannot be enforced against the syndic: only the owner on the due date of the co-ownership charges is liable for the full amount.
- Works charges
These expenses are called " expenses not included in the provisional budget ". As far as the syndic is concerned, these costs are the responsibility of the owner when they fall due. In many cases, the work is voted on at a general meeting and payment is then spread over several periods. In some cases, the seller starts to pay for the work and the purchaser finishes paying for it when he or she becomes the owner. Here again, the parties agree on how these works charges are to be apportioned.
The most common agreement, which is included in the compromis, is that any works approved before the signing of the compromis are to be paid for exclusively by the vendor. The buyer is not considered to have to pay for work that has been decided without his agreement, even though he will benefit from it later. Therefore, on the date of signature of the deed of sale, if any instalments relating to this work become due in the future, the vendor must reimburse the purchaser, as they will be requested by the syndic at a later date.
Work approved between the date of the compromis and the deed of sale is often payable by the purchaser, provided that the seller has given the purchaser sufficient notice of the general meeting by registered letter with acknowledgement of receipt, and has given the purchaser authority to attend and vote in the purchaser's place. Failing this, the work approved at the meeting remains the responsibility of the vendor.
Here again, the distribution agreements are free and have effect only between the parties; as far as the syndic is concerned, only the owner at the time the work is due is liable for it, regardless of who was present at the general meeting.
-Cash advances:
These advances are often referred to as reserve funds or working capital. They are requested from co-owners, and are used to build up reserves to cover all co-ownership expenses without there being a debit account.
These sums must be returned to the selling co-owner when he leaves the co-ownership by selling his lot. However, as this advance must be requested from the new co-owner buyer, the syndic often requests that the buyer reimburse this sum directly to the seller when the sale is signed.
-The syndic's transfer fees:
When selling a co-ownership unit, the syndic charges a transfer fee to cover the services he provides when the unit is sold, in particular the preparation of a " dated statement ". Once a compromis has been signed, the notary in charge of the sale will ask the syndic to complete a questionnaire called the " état daté ". In this document, the syndic will indicate the sums owed by the vendor to the syndic, the sums owed by the syndic to the vendor, the sums owed by the purchaser, whether there are any legal proceedings in progress, the insurance covering the building, etc. This document will be brought to the attention of the purchaser and the vendor.
The seller alone is liable forthe costs of the transfer, which are used to remunerate the property manager for producing this dated statement.
- The syndic's right to object:
Once the deed of sale has been signed and the syndic has not issued an article 20 certificate (less than one month old) attesting that the seller is free of any obligation to the syndicate, the notary will send a notice of transfer to the syndic to inform him that the sale has been completed. From the date of receipt by the syndicate of the notice of transfer, the syndicate has a right of objection over the funds from the sale for a period of fifteen days in order to obtain the sums still owed to it by the vendor in the event of non-payment.