Co-ownership Trustee: Legal Obligations and Fees 2026

The property manager is not the decision-maker of the co-ownership. It acts as an agent: it carries out the decisions taken by the general meeting, administers the building and represents the co-owners' association. This status as agent governs everything else — the extent of its powers, the structure of its remuneration, and the rules on its liability. Most disputes stem 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 meeting at least once a year, keep the 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 co-ownership in the national registry and keep the data up to date.

Financial management. Open a separate bank account in the name of the co-owners' association — a principle-based obligation, which can only be waived by an express decision of the general meeting and in limited cases. It calls in the contributions, keeps the accounts according to a specific chart of accounts, and submits the accounts for approval by the general meeting. For a co-owner who lets out their unit, only part of these charges can be re-billed to the tenant, according to the limited list detailed in our article on recoverable rental charges. It must also build up the works fund, which must be funded once the building reaches a certain age.

Technical management. Ensure the upkeep of the building, have approved works carried out, and take precautionary measures in an emergency. This last power is the only one that allows it to commit unapproved expenditure, and it is interpreted strictly: an emergency implies a risk to the safety or preservation of the building, not a mere opportunity.

Fees: the flat fee and additional services

This is the most frequent source of dispute, and the rule is structured by a statutory model 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 this, a limited list of additional services may give rise to additional remuneration — organising an extra general meeting, monitoring major works, debt-recovery procedures, or issuing certain documents when a unit is sold.

The key point to watch is this: any service not on this list necessarily falls within the flat fee. A property manager who charges for routine reminder letters, photocopies or bookkeeping is overstepping the mark. Comparing two contracts should therefore be done on the flat fee and on the schedule of additional services, never on the flat fee alone as advertised.

Debt-recovery costs incurred against a defaulting co-owner are chargeable to that co-owner alone, and are not spread across all co-owners.

The mandate: term, appointment, removal

The property manager is appointed by the general meeting, for a term set by the contract, within a limit of three years — one year where it is the property manager appointed by the co-ownership bylaws or by the first buyer.

Its appointment is not automatically renewed: it requires a vote. A competitive tender must be organised before each renewal, though the co-ownership council may be exempted from this by a decision of the general meeting.

The removal is possible at any time by the general meeting, but it requires a legitimate reason: removal without cause exposes the co-owners' association to damages for wrongful termination. The matter is placed on the agenda and voted on like an ordinary decision.

The property manager's liability

The property manager is liable to the co-owners' association for its management failures. The most commonly identified breaches are:

• The failure to convene the annual general meeting, which paralyses the co-ownership.
• The failure to recover unpaid charges, which may become time-barred for lack of action.
• The failure to carry out approved works, or carrying them out without authorisation.
• The negligence in taking out insurance that is mandatory.
• The failure to comply with the separate bank account requirement.

It is not, however, liable for decisions taken by the general meeting, even where it advised against their adoption, nor for the approval of an insufficient budget.

Its liability requires fault, damage and a causal link. The action is time-barred under ordinary law rules, with the nuances as to the starting point set out in our article on the limitation period for debts.

The role of the co-ownership council

The co-ownership council 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 procurement threshold.

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

Use-case scenarios

Changing property manager. Check the expiry date of the mandate, run a competitive tender, and put the appointment on the agenda. The handover of archives and funds to the successor is subject to strict deadlines, and failure to meet them makes the outgoing property manager liable.

Disputing fees. Compare the invoice against the model contract: is the disputed service on the limited list of additional services? If not, it falls within the flat fee and is not owed.

Urgent works. The property manager may take the necessary precautionary measures, provided it informs the co-owners and convenes the general meeting. Expenditure presented as urgent after the fact, without any proven risk, does not fall within this framework.

Co-owner landlord. 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 governs the rental charge reconciliation. This sequence is described in our guide to rental property management.

Frequently asked questions

Can the property manager decide on works alone? No, except for urgent precautionary measures needed to safeguard the building. Any other expenditure requires a vote of the general meeting.

Is a separate bank account mandatory? Yes, in principle, in the name of the co-owners' association. Exemptions are limited and require an express decision of the general meeting.

Can a property manager charge for reminder fees? No, if they fall within routine management covered by the flat fee. Only services listed on the model contract's limited list can give rise to additional remuneration, and debt-recovery costs are chargeable to the defaulting co-owner alone.

How is a property manager removed? By a vote of the general meeting, with the matter placed on the agenda. Removal requires a legitimate reason, failing which the co-owners' association risks having to pay damages.

Does the mandate renew automatically? No. Each renewal requires a vote, preceded by a competitive tender unless the general meeting votes to waive it.

What is the property manager liable for? For its management failures: failure to convene meetings, failure to recover charges, failure to carry out approved works, and failure to take out insurance. It is not liable for decisions taken by the general meeting.

Key takeaways

The property manager executes, the general meeting decides. This division settles most disputes: what has not been voted on is not within its remit, and what has been voted on falls within its responsibility to carry out.

On fees, the rule of thumb is just as simple. The flat fee covers routine management exhaustively; only services listed on the model contract's limited list can be added to it. Comparing two property managers on their flat fee alone regularly leads to choosing the more expensive one.