Co-ownership in Monaco is governed by law n° 1.329 of 8 January 2007 relating to co-ownership of built properties, which has already been amended three times (in 2010, 2012 and 2019) and is likely to change again. Indeed, a draft law n°1058, submitted to the National Council on 30 June, proposes new amendments in order to meet the requirements resulting from the evolution of practice and the difficulties encountered.
Thus, the objective of this legislative adjustment is to modernise and improve the status of co-ownership in terms of organisation and administration, to adapt certain rules to the scale of certain buildings, to facilitate decision-making at the general meeting and to prevent disputes, while preserving a balance between individual rights and the collective interest of co-owners. The draft text is structured around two axes, the main provisions of which are presented here.
1/ The creation of provisions responding to the needs of the practice
- Distinction between general common areas (undivided property of all the co-owners), special common areas (undivided property of certain co-owners, i.e. allocated for the use or benefit of certain co-owners only) and private common areas (undivided property of all the co-owners but allocated for the exclusive use or benefit of one unit).
- Introduction of an exemption for certain common costs so that they are charged only to the concerned co-owner.
- Obligation to insure against civil liability risks with an insurance company approved in the Principality, whether or not the co-owners are residents.
- Obligation to attach to the convening notices of the general meetings the estimates relating to the works and expenses when they exceed an amount fixed by ministerial decree, in order to provide full information to the co-owners.
- Introduction of a deadline for the co-owners to notify their questions for inclusion on the agenda of the next general meeting (maximum deadline of ten days before sending the convening notice to the said meeting).
- Creation of specific provisions for co-ownerships composed of two co-owners in order to remedy possible blockages, while preserving the rights of the minority co-owner for the most important decisions:
- partial derogation from the rule of the reduction of the votes of the majority co-owner, the said rule being that a co-owner with a share of the common parts higher than half of the general percentage has his number of votes reduced to the sum of the votes of the other co-owners. However, this can lead to deadlock in the administration of the co-ownership. This is why a dispensation from this principle would be possible for certain decisions, in particular those concerning article 15 of the law in force (in particular, the request of the co-owners to be able to carry out work affecting the common parts or the external appearance of the building, to give a mandate to the managing agent to authorise this work when it is not likely to harm the solidity or the aesthetics of the building), and the appointment of the managing agent. From then on, the majority co-owner would be the decision-maker.
- possibility, in the absence of a professional administrator, for the two co-owners making up the syndicate to meet without prior convocation to take all decisions, including those requiring unanimity.
- Introduction of a derogating regime for small co-ownerships with no more than ten units, with the aim of simplifying the applicable rules. Each co-owner may take the initiative, in the event of an impediment or proven failure on the part of the managing agent which would jeopardise the conservation of the building, the health or the safety of the occupants, to summon an extraordinary general meeting in order to designate a new managing agent or to take the decisions necessary for the conservation of the building, the health or the safety of the occupants.
2/ Updating the provisions
- Clarification of the notion of secondary rights to the common parts, i.e. the right to elevate a building used for common purposes or comprising several premises which constitute private parts.
- Reduction of the majority (two thirds of the votes of the co-owners present or represented instead of unanimity) for the adoption of decisions relating to the raising, scouring or construction of new private premises in the case where the work is not carried out by the building manager but by one of the co-owners on a private unit.
- Reduction of the time limit (one month) for the building manager to send the minutes of the general meeting.
Find out more by consulting the National Council website:
Valeri Agency, since 2019, also offers its services as a building manager in Monaco. Its dedicated team to the management of buildings has all the administrative, legal, accounting and technical competences. Reactive and rigorous, the team carefully monitors the administration of co-ownerships, always with the aim of preserving and enhancing the owners' assets.
We remain at your disposal for any questions you may have about your co-ownership.