What’s the purpose of a co-ownership management committee?

par Elisabeth Lelogeais le 10/7/2011 | Theme : Co-ownership

Every co-owned property has a co-ownership management committee, elected by the co-owners at a general meeting. The committee must contain at least three people to allow for a majority when voting. Once the co-ownership management committee is elected, it appoints a chairperson. The committee representing the co-owners acts as an interface between the co-owned property and the managing agent.

Inspection and advice are the main missions of the co-ownership management committee. It is made up of elected co-owners, flags up any problems and suggests solutions. On the one hand, it enables co-owners to make sure that the managing agent is carrying out their duties in the best interests of the co-owned property. On the other, the co-ownership management committee advises the co-owners and the managing agent of any problems concerning the co-owned property, suggests solutions and makes the managing agent’s work easier. Although it is only an advisory body, its role is a significant one.

Monitoring powers

One of the main tasks of the co-ownership management committee consists of monitoring the administration of the building and the work of the managing agent. Therefore, at any time the committee can ask the managing agent to grant them access to invoices, registers and other documents concerning the property and obtain copies. In general, the consultation takes place on the managing agent’s premises, with notice given in advance. An inspection must take place at least once a year, before the annual general meeting during which the co-owners will decide whether or not to approve the managing agent’s accounts for the past financial year. The co-ownership management committee checks the managing agent’s accounts.
Its role is to scrutinise the managing agent’s accounts; to check the amounts on the invoices, and make sure that they match the quotes and services delivered. In addition, their duties also include ensuring that any work has been authorised by the general meeting and that it has been carried out on the scheduled dates and under the conditions set out; that the sums claimed have been paid by the managing agent and that the expenditures have been fairly divided among the co-owners. The monitoring mission of the co-ownership management committee also involves studying the various expense items, comparing them with those of previous years and monitoring energy consumption. This is an opportunity to spot any anomalies and suggest ways of making savings. The managing agent must also involve the co-ownership management committee in drafting the provisional budget for the coming financial year.

An advisory role

To successfully complete its mission, the co-ownership management committee may consult any person of its choice. This can be a co-owner or their partner, if their particular experience is of use to the co-ownership management committee. Moreover, if the committee encounters any particular technical difficulty, it can ask for help from a professional specialising in the required area: a lawyer, accountant, architect, construction professional etc. This professional’s fees are considered as expenses involved in the day-to-day management of the building, and are paid for by the managing agent, for the co-owned property.
The co-ownership management committee gives their opinion on issues regarding the property to the managing agent and the general meeting of co-owners. Giving this opinion to the managing agent is sometimes a legal requirement, in particular for certain expenditures exceeding a sum agreed upon during the meeting, and for certain urgent works; however the committee may intervene when it deems it appropriate. Thus, in the case of damage to communal areas, serious breaches of the property rules etc., it notifies the managing agent so they can intervene as quickly as possible.
The co-ownership management committee and the managing agent prepare the agenda for each meeting together. The co-ownership management committee can also send a report to the co-owners before the general meeting to clarify an issue on the agenda. The committee can also formulate criticisms of the managing agent’s management of the property, for example failure to recover unpaid charges. If the managing agent does not take account of these criticisms, the committee may alert the co-owners.

Elisabeth Lelogeais