Syndic contract: reread it clause by clause before you sign

The draft arrived with the notice of meeting, or the candidate intends to present it at the meeting itself. Either way, the syndic contract is at risk of being signed in a hurry, at the end of the general meeting (GM), on the basis of a template supplied by the candidate. Yet it is the document that sets what the owners’ association (VME/ACP)GlossaryLegal entity that brings the co-owners together and whose sole purpose is the preservation and management of the building. It acquires legal personality as soon as a first unit is transferred, provided the deed of division and the co-ownership regulations have been transcribed. See the glossary will pay for three years, what will be charged on top and how the relationship can end.

The Civil Code imposes a minimum content and a maximum term. The rest is negotiated. This page goes through the compulsory rules, the terms to insist on and the clauses that deserve a second reading, whether your syndic (the building’s property manager) is a professional or a co-owner.

The syndic contract is compulsory, even for a volunteer

No syndic should work without a written contract. The rule targets the relationship itself, not only the price:

“The provisions governing the relationship between the syndic and the owners’ association, and the remuneration associated with it, are set out in a written agreement. That agreement includes in particular the list of flat-rate services and the list of additional services and their remuneration. A service that is not mentioned cannot give rise to any remuneration, except by decision of the general meeting.”

Art. 3.89, § 1, para. 2, Civil Code

The text makes no difference between professional and non-professional syndics. A co-owner who manages their building for free must therefore also have a contract. It can be short, but it must exist: it describes the tasks, the expenses reimbursed and any remuneration. The question of expenses is covered in the page on volunteer syndic pay.

The last sentence of the article protects co-owners directly. A service that appears neither in the flat rate nor in the list of additional services cannot be charged, unless the general meeting decides so. A precise contract is therefore your best protection against unexpected extras. Comparing prices belongs to another page, on syndic fees.

What is the maximum term of a syndic contract?

Three years. The Civil Code is explicit: ‘The syndic’s mandate may not last longer than three years, but may be renewed by express decision of the general meeting’ (art. 3.89, § 1). The FPS Justice brochure specifies that tacit renewal is not possible.

Three consequences for drafting the contract:

1. The written term does not exceed three years. A clause with a longer term does not allow the syndic to stay on beyond it without a new decision of the meeting.
2. No automatic renewal. A tacit renewal clause conflicts with the requirement of an express decision. Renewal goes through a vote.
3. No compensation for non-renewal. The mere fact of not renewing the mandate cannot give rise to any compensation. Refuse a clause that would nevertheless provide for one on expiry.

The same paragraph limits the syndic’s commitments in time. Unless the general meeting expressly decides otherwise, they may not enter into any commitment for a term exceeding their mandate. A long-term lift or energy contract must therefore be voted.

A special case: the syndic named in the house rules (reglement van interne orde / règlement d’ordre intérieur)GlossaryRules drawn up by private agreement that set out at least how the general meeting operates, how the syndic is appointed and the fortnight in which the ordinary general meeting is held. They are kept at the association's registered office and can be consulted free of charge. See the glossary, often by the developer of a new building. Their mandate ends automatically at the first general meeting. That is the right moment to negotiate a proper contract.

What must a syndic contract contain?

The law requires two lists: the flat-rate services and the additional services with their remuneration. If the contract is to be usable in a disagreement, it has to go further. Let us reread it in the order in which it usually comes.

It opens with the parties: the owners’ association, with its company number, and the syndic. It then sets the start date and the end date, three years later at most (art. 3.89, § 1).

Then comes the heart of the contract, the two lists. The flat-rate services must be detailed: ordinary meeting, accounts, budgets, calls for funds, day-to-day follow-up (art. 3.89, § 1 and § 5). The additional services form a closed list, each with its price: extraordinary meeting, supervision of major works, significant insurance claim, litigation (art. 3.89, § 1). An open list ending with ‘and any other service’ does not fulfil that role.

Several clauses then restate legal obligations, and it pays to put them in black and white. The contract provides that proof of liability insurance is supplied every year, and says who pays the premium (art. 3.89, § 5, 8°). It points out that the accounts are opened in the association’s name, including a separate account for the working capital fund and one for the reserve fund (art. 3.86, § 3). It sets the arrangements for co-owners to consult documents (art. 3.89, § 5, 9°), prohibits any delegation without the meeting’s agreement (art. 3.89, § 6) and makes contracts with the syndic or their relatives subject to the meeting’s prior authorisation (art. 3.89, § 5, 13°).

That leaves the exit. The contract organises the handover of the complete file within thirty days, including the format of the records (art. 3.89, § 5, 7°). Early termination, on the other hand, is governed by the contract alone: any notice period, any compensation, cases of resignation. That is the part to read twice.

The BIV (IPI), the professional institute that regulates estate agents, publishes information on co-ownership on its website, including a document on the syndic contract. A template helps to structure the discussion, but it does not replace reading line by line with your building in mind.

Which clauses of the syndic contract should you watch?

Some wordings come up often and deserve a question before signing.

‘Administrative costs’ or ‘sundry costs’

If they are not defined, they escape the logic of the flat rate. Ask for a definition, examples and, if possible, an annual cap.

Additional services at an hourly rate with no limit

An hourly rate is acceptable for an exceptional file. You still need to know who triggers the service and whether a quote is required beforehand.

Exit fees

The notaries’ brochure states that dismissal happens with or without compensation depending on the contract, and the FPS Justice refers to damages in the event of unfair dismissal. A fee equivalent to several years of fees makes dismissal theoretical. The rules on the end of the mandate are covered in the page on dismissal and resignation of the syndic.

Conditions attached to the handover

The law requires the outgoing syndic to hand over the complete file within thirty days of the end of their mandate. Refuse any clause that makes this handover conditional on prior payment of an invoice.

Contracts with related businesses

The syndic must obtain the meeting’s prior authorisation for any contract between the association and themselves, their employees, their relatives, or a business in which those people hold a stake or perform management functions (art. 3.89, § 5, 13°). The contract can restate this.

Who approves the contract and how is it renewed?

The general meeting approves the contract, in principle when it appoints the syndic. No special majority is required: the decision is taken by absolute majority of the votes of the co-owners present or represented (art. 3.87). In the same decision, designate the person who will sign on behalf of the association, for example the chair of the meeting or a member of the co-ownership council.

Attach the full draft to the notice of meeting. We do not advise voting on a contract you only discover at the meeting: it is voted badly and challenged more easily. If the candidate is a co-owner, point out that someone mandated by the association does not take part in the deliberations and votes on their own assignment (art. 3.87).

Renewal is the opportunity to take a fresh look at the contract: services actually used, extras charged in previous years, quality of the service charge statements. If the outcome is unsatisfactory, the page on how to change syndic explains how to prepare the meeting and the handover. To place the contract within the syndic’s obligations as a whole, see also the page on the role and duties of the syndic and the section on the syndic.