The sale of a co-owned property is a real estate transaction that involves specific rules and strict legal obligations. In 2025, the mandatory documents to be provided during the sale of a property are numerous and must be transparently handed over to the buyer. The property manager plays a central role in this process, particularly in transmitting the necessary administrative and financial documents.
To successfully complete a sale without complications, the selling co-owner must anticipate the preparation of their file, respect the deadlines for submitting the required documents, and ensure the information provided is compliant. This article details all the documents to prepare, the role of the property manager, and the best practices to follow.
Understanding the Context of Selling a Co-owned Property
Selling a property in co-ownership involves specific rules, distinct from those of selling an individual property. It involves not only the sale of the apartment itself but also the transfer of rights and obligations associated with the co-ownership.
The private parts are distinct from the common parts. Each lot sold consists of private areas that belong exclusively to the owner, and a share of the common areas shared with other co-owners. The private areas include the inside of the apartment, while the common areas include collective spaces like hallways, elevators, or the garden.
A co-ownership agreement governs the functioning of the building, residential area, or residential village. This essential document sets the rules for the use of common areas and the responsibilities of each co-owner. It also outlines how the co-ownership charges are divided and any restrictions on the use of private areas.
The management of the co-ownership is overseen by a property manager, who makes decisions at the general meeting. This annual meeting is crucial where major decisions, such as planned works, budgets, and other collective matters, are voted on. Therefore, the buyer of a co-owned lot must adhere to the decisions already made and those to come.
The Legal Specificities of Co-ownership
The legal framework of co-ownership in France is primarily defined by the law of July 10 1965, which establishes the status of co-ownership of built properties. This law sets the rules for the allocation of charges, management of common areas, and the powers of decision-making bodies within the co-ownership.
Co-owners are obligated to pay common charges (for maintenance, collective heating, works approved at the general meeting), and to adhere to the rules of living set by the co-ownership agreement.
Conversely, they have the rights to participate in votes at the general meetings and use their lot according to the conditions set by the current regulations.
During a property sale, these rules directly impact negotiations and the transaction. The future buyer must be informed of:
The financial state of the co-ownership.
Decisions made at general meetings.
Any debts associated with the lot being sold.
Key Players in Co-ownership
Various stakeholders are involved in the management of a co-ownership, each with a specific role.
The property manager, either professional or volunteer, is responsible for administering the co-ownership: maintaining common areas, collecting fees, and executing decisions made at general meetings. A volunteer property manager is a co-owner who assumes these same responsibilities without receiving compensation.
The co-ownership council, composed of elected co-owners, plays an advisory and supervisory role. It assists the property manager in their duties, checks the financial management, and ensures the co-ownership agreement is properly applied.
Finally, the co-owners as a collective form the co-ownership association, a legal entity that collectively makes decisions during general meetings. These decisions determine the necessary works, operating budgets, and potential modifications to the co-ownership agreement.
When a property in co-ownership is for sale, these players are inevitably involved, whether for transmitting mandatory documents or informing the buyer about current decisions and charges.
Mandatory Documents to Provide During the Sale of a Co-owned Property
When selling a property in co-ownership, the seller is obligated to provide a complete file to the buyer. This file contains several mandatory documents that allow the buyer to understand the essential information about the property’s management, the financial health of the co-ownership, and the charges related to the lot.
These documents guarantee full transparency and help the buyer make an informed decision. They are also critical to securing the transaction and preventing potential disputes after the sale.
1. Co-ownership Agreement and Descriptive State of Division
The co-ownership agreement is a central document that defines the rules of operation for the building. It specifies the rights and obligations of co-owners, as well as the use of both private and common areas.
The descriptive state of division complements this document by detailing the allocation of lots within the building. It indicates the area of each lot, its intended use (residential, commercial, etc.), and the share of co-ownership charges associated with it. This information is essential for the buyer to review before completing their purchase.
2. Minutes of the Last Three General Meetings
The decisions made by co-owners during general meetings directly affect the buyer. Therefore, it is essential to provide the buyer with the minutes of the last three general meetings.
These documents allow the buyer to identify decisions made regarding major works, changes in property management, or modifications to internal regulations.
They also provide insight into the financial health of the co-ownership and any potential conflicts between co-owners. It is crucial for the buyer to check if any voted works might lead to additional costs.
3. Co-ownership Summary Sheet
Mandatory since the ALUR law, the co-ownership summary sheet consolidates the essential financial and technical data of the property or development. This document provides an overview of the administrative and financial situation of the co-ownership, making it easier to assess its proper functioning.
It includes details such as the number of lots, the budget, any unpaid fees, and recent decisions that might impact co-ownership charges. This administrative management helps the buyer anticipate future costs.
4. Maintenance Logbook of the Building or Common Areas
The maintenance logbook is a record of all maintenance works carried out in the building or development. It lists both routine repairs and major works, such as roof repairs or elevator upgrades.
This document provides valuable insight into the overall condition of the property and allows the buyer to anticipate future expenses. It also details technical interventions performed by specialized companies, ensuring precise tracking of common area maintenance.
5. Mandatory Technical Diagnostics
Like any property sale, the seller must provide a file of technical diagnostics that assess the condition of the property and any potential risks for the buyer. These diagnostics include:
- Energy performance diagnosis (DPE) to inform about the property's energy consumption,
- Asbestos diagnosis for buildings constructed before 1997,
- Lead diagnosis for buildings built before 1949,
- Gas and electrical safety checks for installations older than 15 years,
- Termite diagnosis required in certain risk areas,
- State of risks and pollution (ERP), which identifies natural, technological, or soil pollution hazards.
These documents must be up-to-date and provided to the buyer at the signing of the sale agreement.
6. State of Accounts: Definition and Content
The state of accounts is a document provided by the property manager detailing the financial situation of the lot being sold. It informs the buyer of the co-ownership charges due by the seller, as well as any debts attached to the property.
This document is essential for signing the authentic deed at the notary’s office. It also provides details on provisions for future works and upcoming financial contributions. The seller is responsible for the cost of this document, which may vary depending on the property manager.
The Role of the Property Manager in the Real Estate Sale Process
In a transaction involving a co-owned property, the property manager plays a central role in handling administrative tasks and providing the necessary documents for the sale. It is their responsibility to ensure the buyer receives all relevant information regarding the financial and legal situation of the property, ensuring transparency throughout the process.
The property manager's involvement ensures that the buyer has all the essential documents to assess the state of the co-ownership and anticipate future financial obligations. However, the speed and efficiency of this process may vary depending on whether the property manager is a professional or a volunteer.
Providing Mandatory Documents by the Property Manager
The property manager’s primary role in the sale is to ensure the transfer of all required documents. Some documents may be available online through the co-ownership's extranet, while others require specific requests and may incur fees.
Delays in providing these documents by the property manager can block the sale. Therefore, it is recommended that the seller proactively manage the process to avoid any delays. Additionally, fees for an "account status" document may vary depending on the property manager, affecting the seller’s costs.
Important to Know: Consequences of Failing to Provide Co-ownership Documents
Failure to provide certain mandatory documents may result in the cancellation of the sale or the nullification of the sale agreement. If the buyer notices non-compliance with the sale file, they have an extended retraction period and may take legal action. In some cases, missing documents may reveal hidden defects, holding the seller liable.
Legal Risks for the Seller
A legal dispute may arise if the buyer believes essential information has been withheld. This could lead to the cancellation of the sale and a claim for compensation. The seller’s civil liability could be engaged, further protecting the buyer.
Additional Delay and Transaction Postponement
If the notary encounters missing documents for the sale, it can delay the signing of the authentic deed and extend the transaction timeline. These suspensive conditions result in financial and logistical inconveniences for both parties.
What Changes in 2025 Regarding Co-ownership and Property Managers
Starting January 1, 2025, several regulatory and practical changes will affect property managers, who must take necessary actions to remain compliant with new legal provisions.
Mandatory Collective Energy Performance Diagnosis (DPE)
Co-ownerships with 50 to 200 lots will be required to conduct a collective DPE, valid for 10 years, which evaluates the building’s overall energy performance, including common areas.
Mandatory Multi-Year Works Plan (PPT)
For co-ownerships older than 15 years with more than 50 lots, the PPT becomes mandatory. It must be updated every 10 years and include an estimate of costs and a timeline for planned works.
Prohibition of Renting G-Class Properties
From January 1, 2025, properties rated G in the DPE will be deemed unfit for rental in mainland France. Owners will need to carry out energy renovation work to improve their property's rating before renting it out.
Evolution of MaPrimeRénov'
Since January 1, 2024, the "geste" pathway allows targeted work (insulation, ventilation, heating) without needing a DPE for eligibility.
Best Practices for Facilitating the Purchase or Sale of a Co-owned Property
To effectively prepare for the sale, it’s essential to anticipate the collection of documents to avoid delays in the transaction. A good relationship with the property manager simplifies the process and optimizes the sale, avoiding unnecessary delays due to an incomplete file.
Anticipating Document Requests from the Property Manager
The time required to request the "account status" may vary depending on the property manager, so it is crucial to prepare the sale file in advance. It’s advisable to contact the property manager early to identify which documents to gather before the sale agreement, thus minimizing the risk of administrative delays.
Checking Document Compliance Before Listing or Making an Offer
A review of the property manager’s documents ensures the compliance of the sale file. Updating the technical diagnostics is also crucial to avoid disputes with the buyer and to guarantee the reliability of the information provided.
Seeking Professional Expertise
An expert real estate advisor will help both the seller and the buyer secure the transaction, negotiate with the property manager, and streamline the sale. Their expertise ensures a complete file, preventing complications for both parties: contact your local Optimhome advisor to simplify these steps.
Conclusion
Selling a co-owned property requires thorough preparation and compliance with legal obligations in collaboration with the property manager. A complete file with all mandatory documents, along with proper anticipation, ensures a smooth and secure transaction for both the buyer and the seller.
To achieve this, it is recommended to consult a local Optimhome real estate advisor, who can help you:
- Anticipate document requests from the property manager to avoid delays.
- Check the compliance of the file before listing (co-ownership agreement, diagnostics, account status, etc.).
- Inquire about property manager fees to avoid unexpected costs.
- Inform the buyer of the co-ownership charges and decisions for transparency.
- Accurately assess the property's value.
- Negotiate the transaction price for both parties.
With a well-prepared seller and an informed buyer, legal risks are minimized, and the sale proceeds smoothly in line with the current legal requirements. Contact your local Optimhome advisor to carry out your real estate project with peace of mind.
Author
Fabrice DOBROWOLSKI - Network Development Director
Optimhome offers you personalized support for your real estate project. Benefit from all my advice, based on several years of experience, to ensure the success of your project.
