Maintenance reserve fund (ALUR)
A mandatory reserve fund for co-ownerships of more than 10 units since the 2014 ALUR law, funded by a minimum annual contribution of 5% of the forecast budget. It covers future maintenance works without requiring extraordinary calls for funds. Its balance appears in the état daté and can reassure both the buyer and the bank about the building's sound management.
Key points
- Mandatory for co-ownerships of more than 10 units under the 2014 ALUR law.
- Minimum annual contribution equals 5% of the co-ownership's forecast budget.
- The balance is disclosed in the état daté provided to the buyer before completion.
- A well-funded reserve signals sound building management to both buyer and lender.
Frequently asked questions
What is the practical purpose of the ALUR reserve fund when buying a property?
It shows whether the co-ownership has planned ahead for maintenance, reducing the risk of unexpected special levies after purchase. A healthy reserve reassures the lender about the long-term condition of the secured asset. The broker reviews it in the état daté to assess building management quality.
Can the seller recover their share of the reserve fund when selling?
No, the reserve fund belongs definitively to the co-ownership and is not returned to a selling co-owner. The corresponding share stays attached to the unit and therefore benefits the buyer. This is a point worth factoring into the net seller price negotiation.
What is the difference between the reserve fund and routine service-charge provisions?
Service-charge provisions cover recurring operating costs (caretaking, maintenance, insurance), whereas the reserve fund is earmarked for future major works. Both are compulsory but governed by separate rules and appear as distinct lines in the co-ownership accounts.
In practice
A buyer purchasing a flat in a 50-unit building finds a €120,000 reserve fund balance in the état daté, enough to cover several years of facade renovation, removing any risk of a special levy after move-in.
Official sources
- Works fund in condominiums · Service-Public.gouv.fr
- Sale agreement and loan condition precedent · Service-Public.gouv.fr
- Housing and financing information · ANIL