New French law of April 9, 2024, expands access to ad hoc administrators for co-ownership disputes, reducing thresholds and introducing new triggers for legal intervention.
New law lowers threshold for ad hoc administrator
A new law passed on April 9, 2024, has made it easier to appoint an ad hoc administrator in property co-ownerships. The reform lowers the threshold for triggering this process from 25% to 15% of unpaid amounts for co-ownerships with more than 200 units.Triggering fact added for governance issues
The reform introduces a new reason to appoint an ad hoc administrator: if the general meeting fails to approve the accounts for at least two years. This targets co-ownerships where governance has broken down before financial problems arise.Who can request the appointment
The law allows co-owners representing at least 15% of the votes, the syndic, the mayor, and other officials to request the appointment of an ad hoc administrator. This includes creditors like water and energy suppliers, and local government representatives.Process and responsibilities
Once appointed, the ad hoc administrator has three months to analyze the financial and physical condition of the property and make recommendations. The syndic must provide all necessary documents within 15 days of the appointment and must act on the administrator’s findings within six months.Legal consequences for inaction
If the syndic fails to act, the administrator or petitioners can seek a court order to convene a meeting or appoint an interim administrator. The law also allows the court to charge the syndic with the costs of the interim administration if they failed to act as required.Powers of the ad hoc administrator
The ad hoc administrator receives all the powers of the syndic, including those of the general meeting and syndical council, except for specific exceptions. This makes the administrator’s decisions binding and enforceable, limiting the co-owners’ ability to contest them through standard legal channels.Protection for the syndic
The appointment of an ad hoc administrator temporarily suspends the syndic’s debts and legal actions against them. This protection can last up to 30 months, depending on the situation and the administrator’s request.Cost considerations and legal distinctions
The cost of the ad hoc administrator can be significant, especially in large co-ownerships with many units. The law also clarifies that this administrator is different from another type of administrator under a separate law, which is used when the syndic is absent and only needs to convene a meeting.Alternatives to the ad hoc administrator
When the problem is limited to a few defaulting co-owners, other legal tools like accelerated recovery under article 19-2 may be more appropriate. For broader governance or building issues, an instruction measure under article 145 of the civil procedure code can be used to investigate and prepare for future legal actions.Preventive focus of new law
The April 9, 2024 law shifts the focus toward preventing crises in co-ownerships by introducing early intervention mechanisms. It encourages action before situations become critical, offering a range of tools from targeted actions to full administrative intervention.
