A successful takeover turns on the quality of the handover. Here is what the outgoing syndic (the managing agent) holds under the rules, and the checklist we work through.
What the outgoing syndic holds
The rules are precise. The syndic “holds the archives of the syndicat de copropriété [the co-owners’ association], together with all agreements, records, correspondence, plans, registers and documents relating to the building and to the association”, and in particular the registers containing the minutes of the general meetings and their annexed papers (article 23 of the Grand Ducal Regulation). It also keeps the up-to-date list of co-owners (article 22) and separate accounts showing the accounting position of each co-owner (article 24).
The funds: checkpoint number one
“All sums or assets received in the name and on behalf of the association must be paid without delay into a bank or post office account opened in the name of the association.” The règlement de copropriété (the condominium regulations), or a decision of the general meeting, may — subject to such safeguards as it determines — set the maximum amount of funds that the syndic is authorised not to pay into that account (article 28 of the Grand Ducal Regulation).
The funds therefore belong to the condominium, not to the syndic. On a takeover, check the exact name on the account, the balances at the handover date, and any investments decided upon by the meeting (article 25).
The takeover checklist
- Title and structure: the schedule of division, the condominium regulations and their registered amendments, plans, and the vertical cadastral record.
- Decisions: the minutes of general meetings and the register, decisions taken outside a meeting by written consultation, and any delegations in force.
- Accounts: the latest approved accounts, the accounting position drawn up as at the takeover date, the statement of debts and receivables, a schedule of arrears naming each debtor and how long they have been outstanding, and the current forecast budget.
- Works fund: the overall balance and the balance per unit — contributions attach to the units and are definitively acquired by the association (article 11 bis of the Law), and a prospective buyer must be able to consult that balance.
- Contracts: lift, boiler room, cleaning, grounds, maintenance, and the building’s insurance — with their expiry dates and termination terms.
- Technical: statutory inspections, surveys, the maintenance log, the two-year and ten-year warranties, and the Energiepass (the energy performance certificate).
- Projects: works voted but not carried out, contracts in progress, retentions, and handovers with any reservations recorded.
- Claims: open files, correspondence with the insurer, adjusters’ reports, and settlements received or expected.
- Legal: proceedings and litigation in progress, recovery action under way, and statutory mortgages registered (article 24 of the Law).
- Staff: where there is a building employee, their contract and the decisions of the meeting fixing the number and grade of posts (article 21 of the Grand Ducal Regulation).
The incoming syndic takes the archives in the condition in which they are handed over: it cannot answer for documents it never received. The habit that protects the condominium is therefore a jointly agreed inventory of what is handed over, and recording in the minutes of the next general meeting the list of missing documents and the steps taken to obtain them.
In the interim
If the condominium is momentarily left without a syndic, the chair of the conseil syndical (the co-owners’ supervisory board) or, failing that, any member of that board convenes the meeting to make the appointment. Until the new syndic takes office, the supervisory board is responsible for carrying out acts of day-to-day management, including calls for funds, and any acts required by an emergency; its decisions are implemented by its chair (article 22 of the Law). The cash flow does not therefore stop — provided a supervisory board exists.
The costs on each side
The outgoing syndic’s file closing fees and the incoming syndic’s file opening fees, together with any work to take over earlier accounting records, are governed by the respective contracts and by the decisions of the meeting. Have them spelled out in the offers: they form part of the real cost of a change, and they should be known before the vote.
What we do on a takeover
We check the documents received, take over or open the bank accounts in the association’s name, reconstruct the accounting position of each co-owner, and present the supervisory board with a status report: what was handed over, what is missing, and what must be put right as a priority. Write to us to discuss it.
General information on Luxembourg condominium law (the amended Law of 16 May 1975 and the Grand Ducal Regulation of 13 June 1975, in their consolidated version applicable as at 1 August 2023). Your own règlement de copropriété may lay down specific rules, which prevail within the limits set by the law. This content is not legal advice.