In a co-ownership, the works fund and the running charges are not mixed. Understanding this distinction avoids much confusion in the accounts of a small co-ownership.
Mandatory, whatever the size
The works fund is mandatory for all residential co-ownerships, whatever their size. A small co-ownership of 2 to 9 units is therefore subject to it just like a large building.
Separate from the running charges
Running charges and the works fund stay separate: a balance does not mix an operating advance with the mandatory works fund. Each co-owner thus sees what has been called, paid and is due, without confusion between the two.
Its place in the Luxembourg framework
The works fund is part of the Luxembourg rules applied to co-ownership, alongside the majorities of the law of 16 May 1975, a suitable chart of accounts and the convening deadlines.
Where to find the applicable rules
The rules and thresholds applicable to administering a co-ownership are described on guichet.public.lu.