Co-ownership: Is the 3-year deadline to update your regulations really mandatory?

Imagine you own a flat in a residence in the hills of Grasse, overlooking the historic perfumeries. You receive a letter from the managing agent announcing an extraordinary general meeting to amend the co-ownership regulations. The reason? A 2018 law imposes changes, and the 3-year deadline for compliance is approaching. But is it really urgent? Should you vote for these costly amendments now, or can you wait?

This question is asked by hundreds of co-owners in the Grasse jurisdiction every year. Between the old residences in the town centre and the modern buildings in Sophia-Antipolis, co-ownership regulations vary considerably. Some date from the 1970s, others have been revised recently. But do they all need to be updated within the same timeframe?

The Court of Cassation, in its decision of 17 June 2021, provides a clear answer that may surprise you. It specifies that the 3-year period given to co-ownership associations to bring their regulations into compliance with the ÉLAN law (Law No. 2018-1021 of 23 November 2018) is not an immediate obligation. In other words, as long as this deadline has not expired, the new rules do not apply automatically. But what does this mean in practice for your co-ownership?

The facts: an everyday story

Mr Dubois, owner of a flat in a 12-unit co-ownership in Grasse, near the Princess Park, receives a notice in 2020 for a general meeting. The managing agent proposes amending several articles of the co-ownership regulations to bring them into compliance with the ÉLAN law. The estimated cost: €8,000, or about €670 per unit. Mr Dubois, a retiree, finds this sum significant and questions the real necessity of this update.

He discovers that his regulations, dating from 1985, contain obsolete provisions concerning the management of the association. Some clauses refer to practices that no longer exist, others are contrary to the new rules on account transparency. But Mr Dubois also notes that the ÉLAN law was enacted on 23 November 2018, and the 3-year deadline for compliance only expires on 23 November 2021. So why rush in 2020?

At the general meeting, he opposes the amendment, arguing that the deadline has not yet passed. The managing agent insists, claiming that compliance must be anticipated to avoid any legal problems. The majority of co-owners vote for the amendments, but Mr Dubois decides to challenge this decision in court. His argument: the new provisions of the law cannot apply until the 3-year deadline has ended. The court rules in his favour at first instance, but the managing agent appeals. The case goes up to the Court of Cassation, which must decide this crucial question for thousands of co-ownerships.

The court's reasoning — analysed

The Court of Cassation, in its judgment of 17 June 2021, carefully examines the provisions of the ÉLAN law. It first recalls that this law amends Article 1 of the Law of 10 July 1965 establishing the co-ownership statute. These amendments concern in particular the rules relating to the managing agent (the manager of the co-ownership) and the transparency of decisions.

The central point of the decision rests on the interpretation of the 3-year deadline provided by the law. The judges explain that this deadline is a "grace period" given to co-ownership associations to adapt to the new rules. In other words, it is not an immediate obligation. The court uses simple reasoning: if the legislator had wanted the new rules to apply immediately, it would not have provided this 3-year period.

Concretely, the Court of Cassation states that "the three-year period from the enactment of the law [...] excludes their application as long as this period has not expired". This wording is crucial: it means that the old provisions of the co-ownership regulations remain valid until 23 November 2021. The new rules of the ÉLAN law only become mandatory after this date.

In Mr Dubois's case, this means that the managing agent could not impose compliance in 2020. The co-owners had every right to wait until the deadline expired. The court thus rejects the managing agent's argument that anticipation was necessary to avoid disputes. It specifies that each co-ownership can organise its compliance as it sees fit, within the limits of the given deadline.

This reasoning constitutes a confirmation of prior case law on legal deadlines. It recalls a fundamental principle of law: deadlines set by law have a precise meaning and must be respected in full. The judges here refuse any extensive interpretation that would force co-owners to anticipate costly amendments.

What this changes for you — concretely

If you are a co-owner in Grasse or its region, this decision has direct implications on your daily life. Take the example of a residence in Sophia-Antipolis where regulations are often complex due to the mix of offices and dwellings.

For the landlord (who rents out their property), this decision means you are not obliged to vote immediately for costly amendments to the regulations. If your managing agent proposes an early update, you can legitimately ask to wait until the deadline expires. undefined, I have encountered cases where co-ownerships spent €15,000 on amendments that were not urgent. With this decision, you can better plan your expenses.

For the tenant, the impact is indirect but real. If your landlord has to contribute to compliance works, this may affect your service charges. A co-ownership that anticipates works could pass on some of the costs to rents. But with this decision, landlords have more leeway to defer these expenses, which can stabilise your rental charges in the short term.

For the purchaser of a co-ownership property, this decision changes your due diligence approach. When you buy a flat, you must carefully examine the co-ownership regulations. Before this decision, regulations not updated could be considered an immediate legal risk. Now, you know that the co-ownership has until 23 November 2021 to comply. This gives you room for manoeuvre in your negotiations.

For the professional managing agent, this decision clarifies your obligations. You must not rush general meetings for early updates. You can plan these amendments according to the co-ownership's schedule and financial capabilities. However, be careful: after 23 November 2021, compliance becomes mandatory. So you must anticipate without rushing.

Concretely, if you are in this situation, you must: check the date of your last regulation amendment, assess the estimated cost of the update, and decide collectively on a schedule that suits your co-ownership. Remember that some amendments may be opportune even before the legal deadline, for example to improve daily management.

Four tips to avoid this type of dispute

• Systematically check legal deadlines: Before voting on any regulation amendment, require the managing agent to specify the legal basis and applicable deadlines. In the case of the ÉLAN law, the 3-year deadline was clear, but it has often been interpreted excessively.
• Request a detailed quote: Any regulation update involves costs (lawyer's fees, publication fees, etc.). Demand a precise quote before voting. In an average co-ownership of 20 units in Grasse, these costs can range from €3,000 to €10,000 depending on the complexity of the amendments.
• Organise a prior information meeting: Rather than dealing with the issue in a general meeting, propose an information meeting where the managing agent and possibly a lawyer explain the issues. This allows for an informed decision and avoids subsequent challenges.
• Consult a lawyer in co-ownership law: For important amendments, investing in a legal consultation (around €200-300) can save you thousands of euros in proceedings. A specialised lawyer can tell you which amendments are really urgent and which can wait.

Besoin d'un conseil personnalisé ? Contactez Maître Zakine — première consultation 30 min à 45€.

In-depth analysis: related case law and developments

This decision by the Court of Cassation fits into consistent case law on legal deadlines. Already in 2019, the Paris Court of Appeal had ruled, in a similar case, that co-ownerships were not required to anticipate compliance. The 2021 decision confirms and strengthens this position.

It is interesting to note that some courts initially had a stricter interpretation. Thus, a tribunal de grande instance in the South-East had condemned a co-ownership for not updating its regulations within 18 months of the law's enactment. This isolated decision was contradicted by the Court of Cassation, which restores a more flexible and protective interpretation for co-owners.

For the future, this decision means that courts will probably pay more attention to legal deadlines in other areas of property law. One can think of deadlines for bringing lifts up to standard, or for carrying out energy performance certificates. The trend is clear: judges require deadlines to be respected, but refuse to impose anticipations not provided for by law.

What few people know is that this decision could also influence the interpretation of other recent laws, such as the 2021 climate and resilience law, which imposes new obligations on co-ownerships. Associations can rely on this case law to organise their compliance in a reasoned manner.

Frequently asked questions

Q: My managing agent tells me I must vote for the regulation amendment now. What should I do?
R: You can legitimately ask to wait until the legal deadline expires, unless the amendment brings immediate benefits to the co-ownership. Demand a detailed explanation of the issues.

Q: What happens if our co-ownership does not update its regulations before 23 November 2021?
R: After this date, your regulations will be contrary to law. This could lead to nullities of general meeting decisions and difficulties in case of sale. It is therefore important to schedule the update before the deadline.

Q: How much does a regulation update generally cost?
R: For a co-ownership of 15 to 30 units in the Grasse jurisdiction, budget between €4,000 and €12,000 depending on complexity. This cost is shared among all co-owners in proportion to their tantièmes (co-ownership shares).

Q: Can I challenge a general meeting decision that imposes an early update?
R: Yes, you have 2 months from notification of the decision to challenge it in court. The Court of Cassation decision gives you strong arguments.

Q: Does this decision also apply to other recent laws on co-ownership?
R: The general principle yes, but each law has its specificities. For laws after 2021, you must examine the deadlines provided by each text.

Do you find yourself in a similar situation? A first 30-minute consultation with Maître Zakine (€45) can save you months of proceedings — and often much more. Book an appointment →