What are the types of co-ownership charges?
Co-ownership charges are the expenses necessary for the maintenance, preservation and administration of the common areas of the building.
Law 18-00 distinguishes two types of charges:
- General charges : Expenses related to administration, maintenance and preservation of common areas (security, cleaning, common area electricity, insurance).
- Special charges : Expenses related to collective services and common equipment (elevator, collective heating, swimming pool). Distributed among co-owners who benefit from them.
How are charges calculated?
Charges are distributed among co-owners proportionally to their share quotas defined in the co-ownership regulations. Share quotas take into account the lot area, floor level, orientation and equipment.
💡 Calculation example
If the annual budget is 120,000 MAD and a co-owner holds 50/1000 share quotas, their annual share will be: 120,000 × 50/1000 = 6,000 MAD, i.e. 500 MAD/month.
Payment calls and provisional budget
The property manager prepares an annual provisional budget submitted to the general assembly for approval. This budget is the basis for calculating payment calls.
Payment calls can be:
- Quarterly : Regular calls to cover the routine expenses of the provisional budget.
- Exceptional : One-time calls for unforeseen works or works voted at an extraordinary GA.
The property manager must maintain rigorous accounting and present the annual accounts at the ordinary GA.
What to do about unpaid dues?
Non-payment of charges is a common problem in co-ownership. Here is the procedure to follow:
- Send a friendly reminder to the debtor co-owner.
- Send a formal notice by registered letter with acknowledgement of receipt.
- If no payment is made within 30 days, initiate legal proceedings before the competent court.
- The property manager acts on behalf of the syndicate of co-owners for the recovery of unpaid dues.
⚠️ Good to know
Unpaid charges are enforceable against the new owner in case of sale. The buyer may be required to settle arrears.
Tips for good charge management
Here are our recommendations for effective co-ownership charge management:
- Establish a realistic provisional budget based on expenses from previous years.
- Build a reserve fund for unforeseen works (recommended: 5% to 10% of the budget).
- Send payment calls regularly and on time.
- Rigorously track unpaid dues and act quickly in case of delay.
- Present clear and transparent accounts at each GA.