Co-ownership of buildings (reform from 1 July 2027): new Bill No. 1117 amending Law No. 1.329

Law No. 1.590 of 19 May 2026 amending Law No. 1.329 of 8 January 2007 on the co-ownership of buildings, as amended (JDM No. 8801 of 29 May 2026) stems from Bill No. 1117, which was tabled on 6 November 2025, referred to the Finance and National Economy Committee (CFEN), and passed on 12 May 2025.

Its entry into force is deferred until 1 July 2027.

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SUMMARY

Law No. 1.590 amends Articles 9 and 21 of Law No. 1.329 concerning the administration of co-ownership, in order to improve its clarity and consistency, and, above all, to extend the obligation to open an "individualised" bank account (dedicated to the co-ownership) in the name of the co-owners' association ("syndicat des copropriétaires") to all property managers ("syndic"), whether voluntary ("syndic bénévole") or professional ("syndic professionnel").

Before the reform, this obligation only applied to voluntary property managers. From July 2027, all professional property managers will be required to open an individualised account for each co-owners’ association, “which may take the form of either a separate account or a sub-account identified in the name of the co-owners’ association. In either case, this individualised account may not be subject to a merger agreement or set off against any other account or sub-account, and the interest generated by the individualised account shall be credited solely to the owners’ association in whose name it was opened.” (CFEN report on Bill No. 1117)

It aims to better protect the interests of co-owners "by enhancing the transparency and clarity of accounting management, specifically during audits or when there is a change of property manager", in other words, the traceability of financial transactions. In the event of the property manager's default, co-owners' associations would be assured "that the funds remain strictly separate from those" of the property manager. (Explanatory memorandum to Bill No. 1117)

This would be the fourth reform of Law No. 1,329 after those carried out by:

• Law No. 1.531 of 29 July 2022 (amendment of Articles 1, 2, 3, 8, 11, 11-1, 12, 17, 19, 20, 21, 22; new Articles 1-1, 1-2, 3-1, 5-1, 7-1, 7-2, 25-2, 25-3, 25-4 in order to address practical difficulties encountered in the organisation and administration of co-ownership);
• Law No. 1.481 of 17 December 2019 on civil solidarity contracts (amendment of Articles 13 and 22 by adding the partner in a cohabitation contract and the cohabitant in a cohabitation agreement);
• Law No. 1.369 of 20 May 2010 (amendment of Article 28 to extend the period during which co-ownerships created prior to Law No. 1.329 were required to comply to 5 years);
• Law No. 1.391 of 2 July 2012 (amending Articles 3, 6, 8, 9, 11, 11-1, 14, 15, 16, 17, 19, 20, 25-1, 28 to resolve, in accordance with property rights, the difficulties in applying Law No. 1.329).

This reform would bring Monegasque law closer to French law (Article 18 of French Law No. 65-557 of 10 July 1965 establishing the status of co-ownership of buildings), which has undergone several changes since 2014 with regard to the issue of separate bank accounts. French Law No. 2014-366 of 24 March 2014 on access to housing and urban renewal (ALUR Law) first introduced the requirement for separate bank accounts for co-ownerships with more than fifteen main lots, with those with fewer lots being exempt. Then, as of 31 December 2020, this exemption for small co-ownerships was abolished by Order No. 2019-1001 of 30 October 2019 reforming the law on co-ownership of buildings, pursuant to Article 215 of Law No. 2018-1021 of 23 November 2018 on housing, development and digital technology (ELAN Law).

However, Monegasque law accommodates the practice followed by many property managers who hold accounts with Monegasque banks, whereby a sub-account is created in the name of each co-ownership association. "According to their feedback, this practice allows the accounts of each association to be kept individualised and has not caused any significant difficulties in terms of the clarity of account management. (...) Based on this observation, resulting from numerous discussions with these professionals, the Committee deemed it appropriate to allow the continuation of this practice, which is suited to the Monegasque model and ensures the transparent management of co-ownership associations’ funds, whilst providing them with the same safeguards as those provided for when opening a separate account." (CFEN report on Bill No. 1117)

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SUMMARY

→ Article 9 of Law No. 1.329 is now dedicated solely to enshrining the essential principles (paragraph 1 retained; deletion of paragraphs 2 to 4, the adapted content of which would be moved to Article 21), namely:

• the administration of the co-ownership is the responsibility of a property manager, and
• the general meeting of co-owners has the recognised power to appoint a union council to assist and supervise the property manager.

→ Article 21 of Law No. 1.329, which deals with the obligations of the property manager, is restructured (into six points):

• General duties of the property manager (I): in addition to the powers conferred by a resolution of the general meeting, to ensure compliance with the provisions of the co-ownership regulations and the implementation of the general meeting’s decisions, and to manage, maintain, supervise, service and improve the building.
• Financial and accounting obligations of the property manager (II): drawing up the draft budget; keeping separate accounts; obligation on the property manager (whether a volunteer or a professional) to open a separate bank account in the name of the owners’ association, into which all sums or assets received in the name of or on behalf of the association must be paid without delay, at a bank of their choice having its head office or branch in the Principality, within three months of their appointment (failing which: the property manager’s mandate is automatically void, but acts performed by the property manager with third parties acting in good faith remain valid). Copies of the periodic statements must be made available to the co-ownership board ("conseil syndical").
  → Definition of a separate account: either a separate account opened by the property manager in the name of the owners’ association, or a single account opened by the property manager divided into sub-accounts identified in the name of each co-owners’ association.
  → This separate bank account may not be subject to a merger agreement or set off against any other account.
  → Any interest generated by this individualised account is definitively vested in the co-owners’ association.
  → Where the individualised account takes the form of sub-accounts identified in the name of each co-owners’ association within a single account opened in the name of the property manager, the latter acts as the agent of the co-owners’ association. The funds held in each individualised sub-account are the exclusive property of the corresponding co-owners’ association. They are allocated solely to that association and may not, at any time, be regarded as forming part of the property manager’s own assets. These funds are exempt from seizure by the property manager’s personal creditors. They are excluded from any enforcement proceedings brought against the
• Representation of the co-owners' association in all civil and legal proceedings by the trustee (III): for legal proceedings, after authorisation by the general meeting, except for protective measures, debt recovery actions, summary proceedings and to defend the general meeting against legal proceedings, except for protective measures, debt recovery actions, summary proceedings and to defend the association against legal proceedings brought against it).
• Management responsibility incumbent upon the property manager and delegation of authority for a specific purpose that may be authorised by the general meeting (IV).
• Obligations of the property manager with regard to archives and documents (V).
• Possibility for the professional property manager to offer co-owners secure online access to various documents relating to the management of the building (VI).

→ TRANSITIONAL PROVISIONS:

• The entry into force of the new provisions is deferred until 1 July 2027.
• For mandates in force on the date the law comes into force, property managers ("syndics") have a period of three months from that date to open an "individualised account" in the name of the co-owners’ association. Upon expiry of this period, the property manager’s mandate shall be automatically void.

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