Appointing a Manager and the Manager's Duties

Is appointing a manager compulsory?

Article 34 is explicit: if the property has eight or more independent units, appointing a manager is compulsory. In buildings with fewer than eight units it is optional, though owners may still appoint one.

The manager is appointed by a majority of the owners both in number and in land share. It may be one of the owners, an outsider, or a professional management company. A three-person board may also be elected.

If the owners cannot agree or fail to convene and appoint, the civil court of peace will appoint a manager on the application of any owner. A court-appointed manager cannot be replaced by the owners’ assembly for six months.

The manager’s principal duties

The manager’s duties are set out in the management plan; where the plan says nothing to the contrary, Article 35 of the law lists the work the manager does:

1. Carrying out the decisions of the owners’ assembly
2. Taking the measures needed to use, protect, maintain and repair the building for its purpose
3. Insuring the property
4. Collecting advances from owners for general management, maintenance, lift, heating and insurance costs until the operating plan is approved
5. Accepting payments relating to management and paying debts arising from management
6. Accepting service of notices concerning the property as a whole
7. Taking measures to prevent loss from missed time limits or lost rights
8. Bringing lawsuits and enforcement proceedings against owners who do not meet their obligations, and registering the statutory mortgage
9. Placing collected money and advances in a bank account opened for the purpose
10. Convening the owners’ assembly
11. Having the monthly maintenance and annual inspection of lifts carried out so they run safely

In addition, Article 36 of the law requires the manager to write the assembly’s resolutions, a summary of notices served, and the expenses into the ledger, keep the documents, and have the ledger closed at a notary within a month after each calendar year ends. How the ledgers are kept is covered in The Ledgers a Building Must Keep by Law.

The manager’s liability is heavy

Under Article 38 the manager is liable to the owners as an agent. That is a serious legal standard: a manager who falls short of the required duty of care can be held personally liable for the resulting loss.

The manager must also account to the owners within the periods set by the management plan or the law. Missing a lift inspection, letting a fire-extinguisher refill lapse or failing to renew the insurance all come back to the manager if an accident follows.

This is the clearest practical benefit of working with a professional management company: the liability passes to an insured legal entity that does this for a living.