Co-ownership and the role of the syndic (co-ownership association representative)

The concept of co-ownership buildings is fairly recent in Morocco. A first law was introduced to regulate the industry in 1946 but it was not until the enforced law 18.00 (Nov 2002) giving co-ownership status to the constructed buildings enabling a deep change of the co-ownership status due to the establishment of a rigid regulation.

This regulation was necessary given the rapid growth of co-ownership housing. Over 1 million co-owned living quarters exist and 40% of them alone are in the city of Casablanca.

The range of implementation of this law is wide since it concerns buildings for housing as well as buildings for offices and also the groupings of villas in a closed space in which exist private and communal areas (horizontal co-ownership).

Definitions

Co-ownership association representative (co-ownership syndic)

Represents the co-owners.

The co-ownership rule book:

This document is elaborated by the building promoter (obligated by law) who must then give a copy to the property conservation agency (Conservation foncière). The co-ownership rule book determines the number of shares and size of each private area as well as the number of thousandths of shares of the communal area. Thus defining the functioning of the co-ownership, the rights and the obligations of the co-owners and the tenants of a building, the lots and the quota of the expenses that will be affected to them.
From this comes the distribution of expenses between the co-owners, the conditions of usage of the communal areas as well as the private ones.

For all new buildings the promoter will give the co-ownership rule book to the first buyer.
In the case of resale, the co-ownership book will be given to all new co-owners by the notary. The clauses of the co-ownership book systematically apply to all co-owners.

Syndic :

Difference between a professional co-ownership representative and a non professional co-ownership representative

The representative may be a professional or non professional (an unpaid volunteer who is often a co-owner of the building).

The representative may be a physical person or a morale one from a company or an association.

Appointment of the syndic

The legislation 1800 does not have the power to appoint a syndic. A general assembly of co-owners must hold a meeting to appoint a syndic.

Attributions of syndic

The main responsibilities of the syndic are:
- To make sure that the rules of the co-ownership are applied.
- Takes care of the maintenance of the communal areas, ex: having an elevator repaired when it is out of order, calling a professional when a water leak is discovered, avoiding nocturnal nuisance.
- To ensure the security of the main entrances of the building and the communal facilities.
- To collect the co-owners’ fees and in return give receipts. Each co-owner is obliged to pay their fees. Without this financial contribution the syndic cannot ensure the administrative tasks, the maintenance of the communal areas and facilities or subscribe to diverse insurance policies of the building. Take note that the syndic must deliver a receipt to a co-owner who sells his property stating that he is no longer a debtor to the co-ownership syndic.
- To communicate the treasury status of the syndic to the co-owners at least every 3 months. Informing all of the co-owners on affectation of the funds and the treasury status of each co-owner.
- To prepare the syndic’s budget for examination and its approval during the general assembly meeting (the group of co-owners).
- To convoke the general assembly for a meeting, this must be done at least once a year.
- To make sure that the decisions of the general assembly are carried out.
- To represent the co-ownership syndic for all legal matters with special authorization from the general assembly.

The advantage of having a professional syndic:

Choosing a professional syndic does represent a financial cost but its legal knowledge and its professionalism is a guarantee of legal security and proper building maintenance as well as ensures that the value of the building remains the same.

Example: It would be more difficult for a volunteer syndic to make the decision to pursue legal actions against a co-owner who does not pay his fees than for a professional syndic to do so. The professional syndic must pursue legal action against the co-owner, after sending a first official warning of legal action, if the co-owner does not pay his fees.

Note that the responsibilities of the syndic can be challenged by a co-owner or co-owners who are victims of a certain damage resulting from a syndic’s action or non-action.

The general assembly of the co-owners:

The legislation obligates that a general assembly meeting of the co-owners be convoked once a year. The legislation does not impose specifics on the content of the meeting nor the delay of the convocation. It is the syndic’s responsibility to convoke the general assembly.

The decisions taken during the general assembly meeting are in accordance with different majorities depending on the importance of the decisions voted.

It must be said that the decisions made at the assembly general meeting will be valid only if the co-owners present at the meeting represent at least 50% of the votes. Each co-owner has certain number of votes proportional to the surface of the private area they own.

There are 4 types of majority ruling depending on the importance of the decision to be made : simple majority, absolute majority 50% of the votes (ex. management of communal areas, appointment or dismissal of syndic etc.), qualified majority 3/4 of the votes (ex : work concerning improvement of building, hiring or dismissal and status of concierge etc.) and at last the unanimous vote (work involving the transformation of the communal areas, creation of a locale for collective use, the contruction of a new building etc.)

Attention: The pre-emption right and co-ownership buildings

It concerns the inherent right of each co-owner to have priority to purchase the property sold by another co-owner.over someone not already a co-owner of the building. This pre-emption right was a mandatory clause in every co-ownership rule book under the empire of the former law governing the legislations of co-ownership. According to the law 1800 November 2002 (article 34) this right is now optional. This would put a doubt on the validity of the sale of the property since any co-owner of the building had a delay of 1 year to exercise his right to revoke the sale.

All buyers of a property of a co-ownership building must imperatively inform themselves at the property conservation agency or at the syndic if the pre-emption right clause is stated in the co-ownership rule book of the building in question avoiding all unexpected surprises.

Practical advice:

To help in your choice of a syndic you must look beyond the cost of services and research the services offered as well as request references (from co-ownership buildings they already manage). Once you have the information needed go to those buildings and ask the co-owners what they think about the syndic and the services executed.

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