Volunteer syndic pay: working it out, getting it voted, declaring it

You took on the role to help out, like many syndics of small buildings. Between calls for funds, insurance claims and preparing the general meeting, the hours pile up, and sometimes you pay small expenses out of your own pocket. Sooner or later the question of volunteer syndic pay comes up, whether you raise it yourself or a grateful neighbour does.

The short answer: yes, a non-professional syndic can be paid. The word “volunteer” does not even appear in the Civil Code: the law speaks of the syndic, professional or not. But you need to distinguish between reimbursing your expenses, a flat fee and payment for your time, have the whole arrangement voted by the general meeting, and settle two matters that are often forgotten: insurance and tax. If you want to compare a professional's fees, that is covered on our page on syndic fees.

Can a volunteer syndic be paid?

Yes. The Civil Code imposes neither unpaid service nor payment. It requires a written contract setting out the relationship between the syndic and 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, pay included:

“The provisions governing the relationship between the syndic and the owners' association, and the related remuneration, are set out in a written contract. That contract includes in particular the list of services covered by the flat fee and the list of additional services and their remuneration.”

Art. 3.89, § 1, second paragraph, Civil Code

Further on, the same article refers to an “unpaid mandate” in connection with insurance. The law therefore contemplates both scenarios. The FPS Justice brochure puts it simply: the role of syndic may also be carried out free of charge. The notaries' brochure adds that a volunteer syndic may ask for payment.

This written contract also applies to a syndic who is a co-owner. Many small co-ownerships skip it out of habit. That is a mistake: without a contract, nothing proves what was agreed, and any amount paid becomes open to challenge. The clauses are explained in detail on the page on the syndic contract.

Expenses, flat fee or pay: three different things

The three formulas are often muddled in the minutes. Yet they follow different logic and have different consequences.

Our view: reimbursement against receipts is the cleanest formula for a first mandate. It simply spares the syndic from paying out of pocket what the association owes. The accounts auditorGlossaryPerson, whether or not a co-owner, appointed each year by the general meeting to check the accounts of the owners' association. Their powers and duties are set out in the house rules. See the glossary, appointed by the general meeting each year, can check every line.

A flat fee makes life easier for everyone, but it blurs the line. An expense allowance well above actual spending looks like a salary. It is then better to own it and call it pay.

For exceptional tasks, the law provides useful flexibility. The contract distinguishes between services covered by the flat fee and additional services. A service not listed “cannot give rise to remuneration unless the general meeting decides otherwise” (Art. 3.89, § 1). Overseeing major works or handling a serious insurance claim can therefore be paid for separately, provided the general meeting votes for it.

Who sets the amount, and how does the vote work?

The general meeting (GM). The amount is approved together with the contract, when the mandate is granted or renewed. No qualified majority is required for this decision: the general rule of Article 3.87 applies, namely an absolute majority of the votes of the co-owners present or represented. The counting rules are explained on the page on voting rules and majorities.

There is a trap for a syndic who is also a co-owner. Article 3.87 of the Civil Code prohibits anyone mandated by the association from taking part, in person or by proxy, in deliberations and votes on their mandate. In practice, you present your proposal, answer questions, and then do not vote on that item. Remember too any proxies other co-owners may have given you: they cannot be used for this vote.

Put the item on the agenda explicitly, with the proposed amount and the draft contract attached. A vague item such as “syndic, any other business” leaves the decision open to challenge.

Liability insurance changes when the mandate becomes paid

Every syndic must take out liability insurance covering the performance of their duties and provide proof of it. The law clarifies a point that directly affects pay:

“in the case of an unpaid mandate, this insurance is taken out at the expense of the owners' association”

Art. 3.89, § 5, 8°, Civil Code

The text says nothing about a paid mandate. Moving from an unpaid to a paid mandate can therefore open a discussion about the premium: does the association keep paying it, or is the amount paid to the syndic meant to cover it? Settle the question in the contract before the vote. Choosing the policy is covered on the page on volunteer syndic insurance.

Pay has another, less visible effect. Agreeing to be paid means accepting higher expectations from the co-owners about the quality of management. The legal obligations stay the same, but a paid mandate is more easily called into question if something goes wrong. See the page on syndic liability.

Do you have to declare your syndic pay for tax?

This is the question to settle before accepting an amount, not afterwards. Reimbursement of expenses actually incurred for the association, backed by receipts, merely offsets an advance. Payment for time spent, on the other hand, is income for whoever receives it.

How that income is treated depends on your situation: the amount, whether the activity is regular or occasional, your other income, your social security status. This page cannot settle your case. Before the general meeting, put the question in writing to the FPS Finance or to an accountant, describing the intended formula precisely. Keep the answer with the minutes.

In practice, many volunteer syndics stick to reimbursement against receipts for this reason. Others prefer modest but clearly declared pay. Both choices are defensible, as long as they are transparent and voted.

One last point: being the syndic of your own building does not make you an estate agent. However, if you plan to manage other buildings for payment, you are entering a regulated professional activity, supervised by the IPI/BIVGlossaryBody that regulates the profession of estate agent in Belgium, on the basis of the Act of 11 February 2013. Anyone who works as a self-employed syndic must be licensed by the BIV/IPI. See the glossary (the Belgian professional institute of estate agents). The difference between the two statuses is explained on the page on the professional syndic.

How should you present pay to the co-owners?

Co-owners more readily accept pay when they understand what it covers. A few pointers for your proposal:

• describe the tasks you actually carry out over a year (calls for funds, service charge statement, general meeting, handling claims, dealing with suppliers);
• clearly separate reimbursed expenses from pay;
• provide for a basic amount and, separately, additional services (major works, significant claims);
• compare the total cost with professional management, using the page on syndic prices in Belgium.

Finally, remind everyone that the mandate cannot exceed three years. The amount is therefore discussed again at the latest at each renewal, which reassures those who are hesitant. To place this subject within the role as a whole, see the page on the volunteer syndic, the page on becoming a volunteer syndic and the section page on the syndic.