Frequently Asked Questions
Find below the answers to the most frequently asked questions about co-ownership in Luxembourg.
When is a property manager mandatory in Luxembourg?
In accordance with the law of 16 May 1975 on the statute of co-ownership of built properties (Mémorial A No 28 of 23 May 1975), the law applies as soon as a built property is divided among several persons into units each comprising a private part and a share of the common areas — a mere joint ownership is not enough to create a co-ownership. In this context, the appointment of a property manager is required. The manager is appointed by the general assembly of co-owners and ensures the day-to-day management of the building, execution of assembly decisions and representation of the co-owners' association.
How to change your property manager in Luxembourg?
The change of managing agent (syndic) is decided at a general meeting. Any co-owner may request that this item be added to the agenda. The appointment and the removal of the syndic fall under the majority of the votes of all co-owners, whether present, represented or absent (Article 16 c) of the Law of 16 May 1975). Failing this majority, a fresh meeting may decide by a majority of those present or represented (Article 15). The syndic's mandate may not exceed three years and its continuation requires a formal decision of the meeting (Article 14, as amended by the Law of 22 April 1985). In the absence of a syndic, Article 22, as replaced by the Law of 22 April 1985, organises the convening of a meeting to appoint one. See our complete guide for the details of the procedure.
How much does a property manager cost in Luxembourg?
Property manager fees vary depending on the size of the co-ownership, the number of units and the services requested; they are generally calculated per unit per month. The basic services include administrative management, accounting, the organisation of general assemblies and technical monitoring. The precise amount therefore depends on the configuration of each co-ownership and the extent of the assignments entrusted.
What is a co-ownership general assembly?
The general assembly is the decision-making body of the co-ownership. It brings together all co-owners at least once a year, in an ordinary assembly, to approve the accounts, vote on the projected budget, decide on works and decide on the appointment of the property manager. Extraordinary assemblies may be called for decisions that cannot wait. Each co-owner has a number of votes corresponding to their share of the common areas. Where a co-owner holds a share greater than one half, the number of votes available to them is reduced to the sum of the votes of the other co-owners — a decisive point in small co-ownerships.
What is the works fund?
The works fund enables the co-ownership to meet the cost of works decided by the general assembly, without systematically resorting to exceptional calls for funds. It is funded by a mandatory annual contribution. Its amount is decided by the general assembly under the majority conditions of article 15, and may not be lower than the amount per square metre set in the annex to the law, in proportion to the co-owners' share of ownership. This obligation has applied since 1 August 2023. An important point in the event of a sale: the contributions paid are attached to the units and definitively acquired by the co-owners' association. They are not refunded when a unit is sold.
What are the rights and obligations of co-owners?
Co-owners have the right to participate in general assemblies, to vote, to consult the accounting documents and to freely enjoy their private areas. They have the obligation to pay their charges, to respect the co-ownership rules, not to damage the common areas and to contribute to the works fund. The law of 16 May 1975 (Mémorial A No 28 of 23 May 1975) governs these rights and obligations.
What is the exact role of the property manager?
The property manager ensures administrative management (contracts, insurance, notices to meetings), financial management (budget, accounting, charge calls, supplier payments), technical management (maintenance, repairs, works supervision) and the representation of the co-owners' association. They carry out the decisions voted at the general assembly and ensure compliance with the co-ownership rules.
How are co-ownership charges calculated?
The distribution does not rest on a single key. The charges for the conservation, maintenance and administration of the common areas are distributed in proportion to the relative values of the private areas included in each unit. For the charges brought about by the common equipment elements, other criteria may be adopted; failing an agreement, participation is based on the usefulness that these elements present for each unit. The co-ownership rules therefore remain the first document to consult. They cover current expenses — maintenance of the common areas, building insurance, common electricity, water, cleaning — and exceptional expenses, such as renovation work or the replacement of equipment. The projected budget is voted on each year at the general assembly.
What are the co-ownership rules?
The co-ownership rules are a contractual document established when the building is divided into units. It defines the private and common areas, sets the shares of each unit, establishes the rules of community living and specifies the distribution of charges. It is binding on the co-owners and all those claiming under them, including tenants and occupants. As regards successors in particular title — including successive buyers — it only becomes binding once it has been transcribed in the registers of the mortgage registrar of the district in which the building is located, in the forms of the law of 25 September 1905 on the transcription of real property rights (Mémorial A No 63 of 28 October 1905).
How are works decided in a co-ownership?
Routine maintenance works are the responsibility of the property manager, within the approved provisional budget (article 14, as amended by the Law of 22 April 1985). Other works are decided by the general meeting, by a majority that varies according to their nature: that of article 15 of the law of 16 May 1975 (Mémorial A No 28 of 23 May 1975) — votes of the co-owners present or represented — for repair or restoration to the identical; that of article 16 (votes of all the co-owners), points e) to g) resulting from the Law of 30 June 2022, in particular for energy renovation; that of article 17 (a majority of the co-owners representing at least three quarters of the votes), point c) as replaced by the Law of 30 June 2022, for works involving transformation, addition or improvement. Maintenance and restoration of the common parts may also be decided outside the meeting, by written consultation, provided the property manager has submitted all the assessment material including the cost of the works, and provided the co-ownership board — where one exists — has authorised the use of that procedure beforehand (article 14, same act). The property manager presents the quotes, the co-owners give their decision, then the property manager monitors the works decided.
Is co-ownership insurance mandatory?
The Law of 16 May 1975 does not, on its own, impose a general obligation to insure the building. Such an obligation may nonetheless arise from the co-ownership regulations, from a decision of the general meeting, or from other applicable rules and contracts. It is therefore advisable to check what your co-ownership regulations and the decisions already taken provide for.
What digital tools does Petzerhiel provide?
Petzerhiel relies on a tool-supported approach: document organisation, request tracking and traceability of interventions, so that every co-ownership has a clear and up-to-date file. In addition, Petzerhiel contributes to the development of Synila, a separate software solution intended for property management. Synila is under development: a client area is already open to some of the co-ownerships we manage, and its rollout is continuing progressively. The features available for your co-ownership are indicated to you by your manager.