Home » France: No Disciplinary Body for Property Managers Despite 2018 Law

France: No Disciplinary Body for Property Managers Despite 2018 Law

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Joëlle, a homeowner in the Pays de Gex region of France’s Ain department, is seeking recourse after alleging mismanagement by her building’s syndic, or property management company. Her frustration – a common one among French co-owners – centers on a lack of oversight and accountability for significant financial discrepancies. “I want to ensure the syndic who failed to convene required meetings and allowed 34,000 euros in unpaid water bills cannot continue to practice,” she stated.

While a mechanism exists to address such concerns – a disciplinary commission intended to regulate real estate professionals – it has remained dormant for eight years, awaiting the appointment of its members. The commission was established under the ELAN law of November 23, 2018, and is designed to operate within the National Council for Real Estate Transactions and Management (CNGTI). Its mandate is to investigate reported abusive practices and provide opinions to the CNGTI, which can then initiate disciplinary proceedings.

Danielle Dubrac, president of the Union of Real Estate Unions (UNIS), a leading professional federation in the French real estate sector, explained the commission’s limitations. “The control commission itself would not have the power to sanction, as a professional order would, but its opinion counts,” she said. The commission similarly offers a venue for professionals to be reminded of the profession’s code of ethics. For co-ownerships, submitting a case to the control commission could strengthen a legal case should they choose to pursue one.

The delay in establishing the commission stems from disagreements among real estate professionals regarding the nomination of their representatives. The commission requires five professionals from the real estate sector and an equal number of consumer representatives. While consumer associations – including the Confédération générale du logement and the Consommation Logement Cadre de Vie (CLCV) – have been appointed, the professional side remains in dispute over who will fill their allotted positions.

The lack of a functioning disciplinary body leaves co-owners with limited avenues for redress. According to PagesJaunes.fr, Gex and its surrounding areas have numerous property management companies and syndics, including Serenity Gestion, which focuses exclusively on co-ownership syndication and pledges dedicated service to owners and tenants. However, without a robust oversight mechanism, ensuring adherence to ethical standards and responsible financial management remains a challenge.

A search of Syndics.NosAvis.com reveals a limited number of syndics directly located in Gex, with several operating in nearby towns like Ornex, Divonne-les-Bains, and Ferney-Voltaire. The Annuaire des Copropriétés lists 173 co-ownerships within the commune of Gex, but notes that the syndic information for many is either unknown or indicates expired mandates. This highlights a broader issue of incomplete or outdated data within the national registry of co-ownerships, managed by the Agence Nationale de l’Habitat.

The ongoing impasse regarding the commission’s composition underscores the complexities of self-regulation within the French real estate industry. As of today, the CNGTI has not announced a timeline for resolving the nomination dispute, leaving co-owners like Joëlle in a state of uncertainty regarding their options for holding their syndics accountable.

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