What should you pay attention to?
Selling a property in co-ownership requires special vigilance since it involves selling a property integrated into a structure within which collective decisions are regularly made and financially impact each owner.
In this article, DECORDIER immobilier gives you the reflexes to have when selling or buying one or more lots in co-ownership.
1°/ Documents to provide:
To guarantee the proper management of a co-ownership, several essential documents, known as "ALUR documents", must be provided when selling a lot. These documents inform the buyer about the operation and obligations of the co-ownership. They must be provided no later than the day the promise of sale is signed.
These are the following documents:
- The summary sheet of the co-ownership.
- The co-ownership regulations and the descriptive state of division.
- The minutes of the AGMs of the last 3 years.
- The latest statement of annual charges.
- All the financial information of the co-ownership, available in the dated preliminary statement, which you can obtain from the trustee or an online service provider.
- The building maintenance log.
- An information notice (by exception, this document is not yet mandatory today since its content has not yet been specified!).
- The Global Technical Diagnosis if it has been carried out.
- The multi-year work project if it exists, or the final plan if it has been voted on.
If the first 4 documents are not provided at the latest on the day of the promise of sale, the buyer's 10-day withdrawal period will not begin. It will only begin the day after all the documents are submitted.
In our DECORDIER immobilier Thonon and Evian agencies, in order to facilitate transactions, we imperatively request these documents before signing the mandate and putting a property online, which ensures real follow-up between the client and the notary. Our files are complete, which allows us to reach a signature quickly.
2°/ The information to be provided:
It is not enough to provide the documents; it is essential to examine them to understand the key aspects of the co-ownership and provide informed advice.
One of the first things to examine is the financial situation of the co-ownership:
- If there are unpaid bills or debts to suppliers, the purchaser must be informed, because these debts can be distributed among all the co-owners after the sale.
Elements also important for our purchasers: The work planned in the co-ownership.
- To avoid surprises related to the work voted on in a co-ownership, consult the minutes of the last 3 general meetings, available from the trustee or the seller. Calls for funds for this work are generally staggered over time and addressed to the owner in place. To secure your purchase, include in the compromise a clause specifying that the work voted on before the sale remains the responsibility of the seller. This clause can also specify that if a general meeting is held after the signing of the promise, the seller must send the notice to the buyer, who can participate and will be liable for any new work voted on.
It is also advisable to consult the draft multi-year work plan if it has been carried out, which aims to schedule any work to be carried out over the 10 years following its completion. Find our article on the PPT: HERE. If this project is voted on, it becomes a multi-year work plan and therefore the work voted on will be carried out in the coming years, they will then be indicated in the maintenance logbook. Ask the trustee if a draft plan or a final plan has been voted on, he will have to provide it to you if it exists.
- Also check if the co-ownership has a work fund. This fund imposes an annual contribution of approximately 5% of the forecast budget, but can be used to finance a large part of urgent or planned work in the multi-year plan. Also check the dated preliminary statement to see if it exists!
Finally, check that the co-ownership is not subject to any ongoing proceedings!
- Whether for financial reasons or due to a problem encountered with a third party, the existence of a lawsuit involving the co-owners' association can be a concern for future buyers. Depending on the nature of the dispute, it is advisable to find out about the financial impact that the buyer could suffer, such as a contribution to lawyer's fees.
DECORDIER immobilier agencies can help you with your real estate project:
- Thonon +33 (0) 4 50 72 31 95 / e-mail : thonon@decordier-immobilier.com
- Evian +33 (0) 4 50 75 15 15 / e-mail : evian@decordier-immobilier.com
- Grand-Baie : +230 268 2828 / e-mail : contact@decordier-immobilier.mu
www.decordier-immobilier.com