A co-ownership statement may show several amounts that seem to resemble one another: calls for funds, provisions, payments received, adjustment or balance. These figures do not, however, mean the same thing. The vocabulary also depends on the point of view. The property manager issues a call for funds when it requests the payment of a sum. For the co-owner, the sum requested constitutes a provision, that is to say an advance on the charges whose final amount is not yet known.
To understand what you actually owe, you therefore need to distinguish between what has been requested from you, what you have paid, and the result of the comparison between the provisions paid and the actual expenses.
What does the amount called represent ?
The amount called corresponds to the sums that the co-ownership has asked you to pay. These may be provisions intended for current charges, contributions to the works fund, or a specific call intended to finance an expense decided on by the general meeting.
An amount called remains recorded in your situation for as long as it has not been paid or corrected. The date of the call and its due date make it possible to know when the payment was due.
What does the provision represent ?
The provision corresponds to the sum requested from the co-owner in anticipation of the charges of the financial year. The call for funds designates the request issued by the property manager. The provision designates the sum called in anticipation of the expenses. It can also be described, from the co-owner's point of view, as an advance on charges. This provision does not yet constitute the final settlement of the charges of the financial year. It will later be compared with the expenses actually incurred.
What does the amount paid represent ?
The amount paid corresponds to the payments actually received by the co-ownership and allocated to your account. A call must not therefore be confused with a payment. The first is a request for payment. The second is the money actually collected.
When a payment appears to be missing, its date, its reference and the allocation given to it must be checked. A transfer made without a clear reference can sometimes be difficult to attribute immediately to the right unit or the right co-owner.
How is the balance formed during the year ?
During the financial year, the balance may simply represent the difference between the calls already due and the payments recorded. If the sums called exceed the payments received, the statement shows an amount still owed. Conversely, an early payment or one greater than the calls already issued may show an amount in the co-owner's favour.
This provisional balance does not yet indicate, however, whether the annual charges have been correctly estimated. It first shows the position of the calls and payments on a given date.
What happens at the end of the financial year ?
After the close of the financial year, the co-ownership's actual expenses are compared with the provisional budget and the provisions paid. The general meeting closes and approves the accounts of the past financial year. An individual statement then makes it possible to determine the actual share of the expenses corresponding to each unit.
If the provisions paid are lower than the final share of the charges, an additional amount must be paid. If they are higher, the statement shows an amount in the co-owner's favour. This amount may be refunded or set off against future calls according to the arrangements applicable in the co-ownership.
Why can a balance change after the accounts are approved ?
The balance shown during the year is based mainly on the calls already issued and the payments recorded. The annual adjustment introduces a new factor: the actual cost of the charges.
A co-owner may therefore have paid all their calls on time and yet still have to pay an additional amount if the expenses have exceeded the forecasts. Conversely, they may have paid exactly the sums requested and then benefit from a favourable balance if the actual expenses were lower than expected.
What checks should you carry out ?
To understand a situation, you should follow a simple logic. Begin by checking the total of the sums called and their due dates. Then compare this total with the payments recorded. Finally, identify whether the statement already includes an adjustment arising from the approved accounts or whether it merely shows a provisional situation during the financial year.
Current charges and the sums intended for the works fund must also be kept distinct. They do not have the same function. This distinction is explained in more detail in the article devoted to how calls for funds work. In the event of an unexplained discrepancy, ask the property manager for the details of the calls, of the payments allocated to your account and of the calculation of the annual adjustment.
Reference texts
The amended Law of 16 May 1975 establishing the statute of co-ownership of built property and the Grand-Ducal Regulation of 13 June 1975 govern in particular the keeping of the accounts, their approval by the general meeting and the accounting position of each co-owner. The works fund is governed by Article 11bis of the Law of 16 May 1975, introduced by the Law of 30 June 2022.