Stephen Smith (France) Ltd

[Marina]

I apologise for posting in this section but I was not able to in the section dealing with the law.
I own an apartment in leaseback in a résidence parahôtelière. The
residence opened in November 2003. It was extremely badly managed at first and remained very poorly patronised for more than a year. Rents arrived erratically and incompletely. The on site manager was blamed, sacked and replaced. Then the overall manager handed over the business to someone else who says he injected a lot of money into the venture. He paid us our rents and arrears, but he is not giving us our increases as per lease. He has not refunded the household rubbish tax, and has tried to make the owners sign a paper accepting 0% increase in 2005 and 50% of what it should be, thereafter. The residence is doing very well now and should continue, it is a quality building, very well situated. A few owners are thinking of suing, most would prefer to avoid this extreme if possible.
What do you think we should do? What recourses do we have, short of suing? Is the "Bail commercial" legally binding? Can the new manager do this?
Thanking you in advance for your reply,

Marina

[Stephen]

The answer to your question depends on the contents of the bail. Normally the manager cannot vary the terms of the bail unless the lessor agrees in writing. If there is no special clause in the bail, the reduction in increases should be refused by recorded delivery.

The type of action that could be contemplated depends on how the co ownership is managed. Normally there should be by-laws relating to the company or association that manages the co ownership and each year there should be an AGM. The best form of action would be for owners to act together, perhaps to propose part of the agenda for the AGM and obtain a mass rejection of the manager's proposals at that AGM. A resolution to get the household rubbish tax reimbursed could also be voted on and, if necessary, the co-propriété could decide to take joint action against the manager.

It would be useful to check the bail to see whether charges can be increased. You do not want to secure rent increases to find that the manager increases the charges to finance them. The charges should normally be voted at the AGM and should be based on projected costs for the coming years.

Best regards

Stephen

[Marina]

Stephen

I took your good advice. I organised the AGM for our residence.
But the manager is still not paying everybody - at least 15 owners have not had their term 3 rent, in addition to many arrears, no increase and no refund of household refuse tax. He does not answer phone calls or e-mails. I fear the worst. He has not replied to my request for his presence at the AGM. What exactly can we do, assuming that we get the majority at the AGM? Can the syndicate take him to court?

Many thanks again.

Marina