Mortgage basics
Works voted on in a co-ownership before your purchase: who pays, and on what date
Works voted on before the sale of an apartment: what the 1967 decree places on the seller or the buyer, and what the preliminary sale agreement can change.
For works voted on outside the budget before the sale, each call for funds is due by the person who is a co-owner on the day it becomes payable, regardless of the date of the vote: to the seller, the calls payable before the sale, and to the buyer, those payable afterwards. The preliminary sale agreement may allocate the costs differently, but the clause binds only the seller and the buyer, never the co-ownership association. The remaining share enters the financing plan.
By Sandy MASCART, mandataire d'intermédiaire en opérations de banque et en services de paiement ORIAS 26000541 sous le mandat de CDV PATRIMOINE & ASSURANCE (ORIAS 14005573)
Key points
- For works voted on outside the budget, each call is due by the person who is a co-owner on the day it becomes payable, whether seller or buyer.
- The date of the vote settles nothing: it is the schedule voted on by the general assembly that determines the due date, call by call.
- The preliminary sale agreement may allocate the cost differently, but this clause binds only the seller and the buyer, never the co-ownership association.
- The sums paid into the works fund remain attached to the lot: the co-ownership association does not refund them to the seller.
- A share that remains for you to pay is a purchase expense: it enters the financing plan presented to the lender.
Works voted on before your purchase are not necessarily for the seller: each call is due by the co-owner from the day it becomes payable. Calculate your share before signing, negotiate it in the preliminary sale agreement, and include it in the financing plan. See the basic rules of residential mortgage credit.
Who pays: the date of due date decides, not the date of the vote
Each provision outside the budget is due by the co-owner from the moment it becomes payable: this is Article 6-2 of the decree of 17 March 1967. The seller and the buyer can therefore share the same works.
| What is due | To whom it falls | Where it is written |
|---|---|---|
| The provision from the budget already payable | To the seller | 1967 Decree, Art. 6-2, 1° |
| A call for works outside the budget, payable before the sale | To the seller | 1967 Decree, Art. 6-2, 2° |
| A call for works outside the budget, payable after the sale, even if voted on before | To the buyer | 1967 Decree, Art. 6-2, 2° |
| The over- or under-payment revealed by the approval of the accounts | To the person who is a co-owner on the day of approval | 1967 Decree, Art. 6-2, 3° |
| Contributions already paid to the works fund | To the co-owners' association, without reimbursement to the seller | 1965 Law, Art. 14-2-1, III |
Read the date of each call
In the minutes, look for the resolution that sets the number of calls and their dates, not just the amount. Roof voted in June, called in October, January and April, sale in February: April is for you.
The adjustment at the approval of the accounts goes to the co-owner of that day: handle it in the preliminary sale agreement.
The seller's arrears remain the seller's responsibility
The amounts due before the sale remain the seller's responsibility. The building manager may lodge a claim against the sale price with the notary.
Ask the notary for the exact date on which you become a co-owner for the purposes of the building management association. The steps: the actual timeline of a purchase.
Identify your share before signing
At the preliminary sale agreement, you receive the minutes of the most recent general meetings, the amounts due by the buyer, the share of the maintenance fund and the multi-year plan, if one exists.
- The minutes: the vote, the amount, the apportionment key and the terms of the call for funds.
- The amounts due by the buyer: is the line blank despite works having been voted on? Ask why.
- The share of the maintenance fund for your unit.
- The multi-year works plan: what might be voted on subsequently.
Is a document missing from the preliminary sale agreement? Your withdrawal period only begins on the day following its communication (Article L. 721-3 of the same code).
Ce délai ne part qu'une fois les documents de la copropriété communiqués, lorsqu'ils manquaient à la signature de la promesse. Son décompte et sa mise en œuvre sont détaillés dans l'article consacré à la rétractation.
- En vigueur depuis le
- Source
- Article L. 271-1 du code de la construction et de l’habitation — Légifrance
See withdrawal and reflection. Before the deed, the dated statement from the building manager lists the provisions not yet due that will become your responsibility: compare it with the preliminary sale agreement.
Negotiating works in the preliminary sale agreement: what the clause changes
The preliminary sale agreement may leave everything to the seller, but only between you: the management company always calls upon the co-owner at the time.
A call for funds “at the seller’s expense” will be claimed from you; it is for the seller to reimburse you. Have it written:
- the works in question, by date of general meeting and resolution;
- a single criterion: vote, call for funds or completion;
- the method of settlement: retention in the deed or reimbursement;
- the general meeting held between the preliminary sale agreement and the deed: who pays for what is voted there.
The works fund remains attached to the lot
It is not refunded to the seller. You may agree to pay an equivalent amount to it: this is a point of negotiation.
The collective loan becomes payable on sale
In the cases covered by Article 26-8 of the Act, the sale renders immediately payable the sums that the seller still owes. Settle this before the preliminary sale agreement. See the eco-PTZ.
Integrating the share into the financing plan
It is an expense of the purchase, like the deed fees: it appears in the plan presented to the lender.
- On the equity, if it still covers fees and reserve: the ancillary fees.
- In the loan, if the lender accepts it, with the minutes and schedule in hand: the financing of the works.
- By negotiation: price reduction or coverage by the seller.
A separate works loan, taken out afterwards and without security over the dwelling, may fall under consumer credit: it does not fall within my mandate. The amount of the suspensive condition must include the financed share.
Sandy MASCART, mandate holder for intermediary in banking operations and payment services, decides on no grant and receives no funds.
Minutes in hand? Create your file or have your share calculated by telephone.
Sources
- Légifrance — /loda/article_lc/LEGIARTI000053191265
- Légifrance — /loda/article_lc/LEGIARTI000006488324
- Légifrance — /loda/article_lc/LEGIARTI000043977299
- Légifrance — /loda/article_lc/LEGIARTI000053191350
- Légifrance — /loda/article_lc/LEGIARTI000043967792
- Légifrance — Article L. 721-2 du code de la construction et de l’habitation
- Légifrance — Article L. 721-3 du code de la construction et de l’habitation
- Légifrance — /loda/article_lc/LEGIARTI000053191253
- Légifrance — /loda/article_lc/LEGIARTI000049398754
- Légifrance — /loda/article_lc/LEGIARTI000049398691
- Légifrance — /loda/article_lc/LEGIARTI000042078621
- Légifrance — /loda/article_lc/LEGIARTI000043977289
- Légifrance — /loda/article_lc/LEGIARTI000049398702
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