Property Manager: Legal Obligations and Fees 2026

The property manager is not the decision-maker for the condominium. It is the agent: it carries out decisions made by the general assembly, manages the building, and represents the union of co-owners. This status as agent governs everything else — the scope of its powers, the structure of its compensation, and the rules governing its liability. Most disputes arise from confusion on this point: blaming the property manager for a decision it did not make, or letting it make a decision that was not its to make.

Three distinct duties

Administrative management. Convene the general assembly at least once a year, keep its minutes, notify decisions, keep the list of co-owners and the building's maintenance logbook up to date. The property manager must also register the condominium in the national registry and keep the data current.

Financial management. Open a separate bank account in the name of the union — a mandatory obligation in principle, which can only be waived by an express decision of the assembly and in limited cases. It calls for provisions, keeps accounts according to a specific chart of accounts, and presents the accounts for approval by the assembly. For a co-owner who rents out their unit, only part of these charges can be re-billed to the tenant, according to the exhaustive list detailed in our article on recoverable charges. It must also set up the works fund, which must be funded once the building reaches a certain age.

Technical management. Ensure the building's upkeep, have approved works carried out, and take protective measures in case of emergency. This last power is the only one that allows it to commit non-approved spending, and it is interpreted strictly: an emergency implies a risk to the building's safety or preservation, not merely an opportunity.

Compensation: flat fee and additional services

This is the most frequent source of dispute, and the rule is structured by a standard regulatory contract.

The property manager's fees are based on an annual flat fee covering all routine management services. This flat fee is exhaustive: everything that falls under routine management is included in it and cannot be billed separately.

Alongside it, an exhaustive list of additional services may give rise to supplementary compensation — organizing an extra assembly meeting, overseeing major works, collection procedures, issuing certain documents upon a sale.

The point to watch is this: a service that does not appear on this list necessarily falls under the flat fee. A property manager that charges for routine reminder letters, photocopies, or bookkeeping is overstepping the bounds. Comparing two contracts should therefore be based on the flat fee and the schedule of additional services, never on the flat fee alone.

Collection costs incurred against a defaulting co-owner are charged solely to that co-owner, not spread across everyone.

The engagement: term, appointment, removal

The property manager is appointed by the general assembly, for a term set by the contract, up to a maximum of three years — one year when it is the property manager appointed by the condominium bylaws or by the first buyer.

Its appointment is not automatically renewed: it requires a vote. A competitive bidding process must be organized before each renewal, though the board of co-owners may be exempted from this by a decision of the assembly.

The removal may be decided at any time by the assembly, but requires a legitimate reason: removing the manager without cause exposes the union to damages for wrongful termination. The matter is placed on the agenda and voted on like any ordinary decision.

The property manager's liability

The property manager is liable to the union for management errors. The most commonly cited failures are identifiable:

• Failure to convene the annual assembly, which paralyzes the condominium.
• Failure to collect unpaid charges, which may become time-barred if no action is taken.
• Failure to carry out approved works, or carrying them out without authorization.
• Negligence in taking out required insurance.
• Failure to comply with the separate bank account requirement.

It is not, however, liable for decisions made by the assembly, even when it advised against them, nor for the adoption of an insufficient budget.

Its liability requires fault, harm, and a causal link. The claim is time-barred under ordinary law rules, with the nuances regarding the starting point set out in our article on the statute of limitations for claims.

The role of the board of co-owners

The board of co-owners assists the property manager and oversees its management. It gives its opinion on matters referred to it, and its opinion is mandatory above a certain contract or purchase order amount.

It has a right to access documents: it may review any document relating to the management and administration of the building. This right is the main lever of oversight during the term of office, far more effective than challenging the accounts after the fact.

Use cases

Changing property manager. Check the expiration date of the engagement, run a competitive bidding process, and put the appointment on the agenda. The transfer of records and funds to the successor is subject to specific deadlines, and failure to meet them makes the outgoing property manager liable.

Disputing fees. Compare the invoice to the standard contract: does the disputed service appear on the exhaustive list of additional services? If not, it falls under the flat fee and is not owed.

Urgent works. The property manager may take the necessary protective measures, provided it informs the co-owners and convenes the assembly. An expense presented as urgent after the fact, without a proven risk, does not fall within this framework.

Landlord co-owner. The property manager's calls for funds and the reconciliation of charges with the tenant follow two separate schedules, and the second depends on the first — the annual closing of the building's accounts determines the timing of the tenant's charge reconciliation. This sequence is described in our property management guide.

Frequently asked questions

Can the property manager decide on works alone? No, except for urgent protective measures necessary to safeguard the building. Any other expense requires a vote of the assembly.

Is the separate bank account mandatory? Yes, in principle, in the name of the union. Exceptions are limited and require an express decision of the assembly.

Can a property manager charge reminder fees? No, if they fall under routine management covered by the flat fee. Only services listed on the standard contract's exhaustive list may give rise to additional compensation, and collection costs are charged solely to the defaulting co-owner.

How can a property manager be removed? By a vote of the general assembly, with the matter placed on the agenda. Removal requires a legitimate reason, failing which the union is exposed to damages.

Does the engagement renew automatically? No. Each renewal requires a vote, preceded by a competitive bidding process unless the assembly votes to waive it.

What is the property manager liable for? For its management errors: failure to convene meetings, failure to collect charges, failure to carry out approved works, failure to take out insurance. It is not liable for decisions made by the assembly.

Key takeaways

The property manager executes, the assembly decides. This division resolves most disputes: what has not been voted on is not within its authority, and what has been voted on falls under its responsibility to carry out.

On fees, the framework is just as simple. The flat fee exhaustively covers routine management; only services listed on the standard contract's exhaustive list may be added to it. Comparing two property managers based solely on their annual flat fee regularly leads to choosing the more expensive one.