In this article
How a co-ownership works
The legal framework is the law of 16 May 1975 on the status of co-owned buildings. In broad terms:
- Each apartment is a lot, made up of a private part (the flat, a cellar, a parking space) and a share of the common parts, expressed in thousandths (millièmes).
- All owners together form the syndicate of co-owners, which owns and manages the common parts.
- Decisions are taken at the general assembly of owners, usually once a year, by majorities that depend on the type of decision.
- A syndic, often a professional managing agent, runs the building day to day, collects charges and executes the assembly's decisions.
Your thousandths determine both your share of most costs and the weight of your vote.
The mandatory works fund
Since 1 August 2023, every co-ownership in Luxembourg must build up a works fund (fonds de travaux) to finance future works on the building. The Housing Ministry's guidance sets minimum annual contributions per square metre of energy reference surface, depending on the building's energy class:
| Energy class | Minimum annual contribution |
|---|---|
| A+, A, B, C | €3 per m² |
| D, E | €5 per m² |
| F, G, H or no valid certificate | €6 per m² |
For an 80 m² apartment in a building of class F, that is at least €480 a year, on top of ordinary charges. The general assembly can decide on higher contributions.
Two points matter to buyers:
- The fund stays with the building. When an apartment is sold, the seller's accumulated contributions are not reimbursed; they remain in the fund. As a buyer, you therefore inherit a share of what has been built up.
- The provisions are mandatory. A general assembly cannot vote to ignore them.
A healthy works fund is good news for a buyer: it means the building is preparing for its future, and large calls for money are less likely.
The documents to read before signing
Ask the seller or the agent for these before you sign a compromis. A serious seller will provide them.
The minutes of the last three general assemblies
They tell you what works have been discussed, voted or postponed. A roof, facade or lift replacement voted last year and not yet paid is a cost you may inherit, depending on how the compromis allocates it.
The co-ownership regulation and the division deed
They define your lots, your thousandths, and the rules of the building: pets, short-term letting, use of common areas, parking.
The annual accounts and the budget
They show ordinary charges, what they cover and whether owners pay on time. A high level of unpaid charges from other owners is a warning sign.
The state of the works fund
How much has been accumulated, and what is planned.
The energy performance certificate
The building's energy class affects both your heating costs and the minimum works fund contribution. See our guide to the energy passport.
Ordinary charges
Ordinary charges cover the running costs of the building: heating if central, water, cleaning, common electricity, lift maintenance, insurance of the building and the syndic's fees. For an owner-occupier, they are a monthly cost in the budget. For a landlord, part of them can be passed on to the tenant as rental charges, and part cannot. Our guide to rental charges explains the tenant's side.
Ask for the actual charges for the flat over the last two years, not only the monthly advance.
Who pays for works voted before the sale
This is one of the most common disputes after a purchase. Works voted by the assembly before the sale but called for payment after it: who pays? The answer depends on the compromis. A good compromis states clearly how calls for funds relating to works already voted are allocated between seller and buyer. If it says nothing, raise it before signing.
Warning signs
- Minutes that mention the same problem year after year without a decision: damp in the cellars, a failing lift, facade cracks.
- High unpaid charges from other owners, which weaken the building's finances.
- A large works programme voted recently with calls for funds still to come.
- Conflict between owners and the syndic, or a recent change of syndic after disagreements.
- A very low works fund in an older building with a poor energy class.
None of these automatically rules out a purchase. They all affect its price.
Rules that affect how you use the flat
The co-ownership regulation also governs everyday life in the building, and some of its rules matter a great deal depending on your plans.
- Letting. Some regulations restrict short-term or furnished letting, or require the syndic to be informed of tenants. If you are buying to let, read these clauses first.
- Works inside the flat. Moving a kitchen, removing a wall or changing windows can require the assembly's approval, especially where load-bearing walls, facades or shared pipes are involved.
- Pets, bicycles, parking. Where bicycles can be stored, whether visitor parking exists, and what is allowed on balconies are all set by the regulation.
Asking these questions before signing avoids the disappointment of discovering that the renovation you planned needs a vote you may not win.
Taking part after you buy
Once you are an owner, attend the general assembly or give a proxy. Decisions on renovations, energy works and the budget are taken there, and your vote counts in proportion to your thousandths. Owners who never attend often discover decisions only when the bill arrives.
Our take
An apartment is only as good as the building around it. The flat can be fixed with a budget and a few weeks of work; a building with deferred maintenance and a divided assembly is a longer story. Read the minutes before you fall in love with the kitchen.
When we sell apartments at Aura Properties, we gather the co-ownership documents before the first viewing so that buyers can decide on facts. See our properties for sale, our guide to the buying process, or contact us.
Sources
This article describes general rules and market practice in Luxembourg and is not legal, tax or financial advice. Rules and announced measures change; confirm the position that applies to you with a notary, your bank or a tax adviser before signing.
