In brief:
- Law 106-12 (Dahir 1-16-49 of 27/04/2016) does not replace law 18-00 — it amends and supplements it.
- The union council becomes mandatory (beyond 8 lots) and is no longer optional.
- A professional property manager is required for large complexes; the manager's contract is regulated.
- Eased majorities on certain votes (energy-saving works, accessibility) to unblock condominiums.
- A works fund built up progressively to avoid shock calls for funds.
- Penalties: fines for a defaulting manager, easier recovery of unpaid amounts, broadened legal mortgage.
1. Why a reform 14 years after law 18-00?
Law 18-00 of 2002 had set the framework — the distinction between common and private parts, the bodies (assembly, property manager), the condominium by-laws, charges, works. Fourteen years later, the verdict of practitioners was unanimous: too many condominiums were not functioning. No union council, a property manager improvised by an overwhelmed volunteer co-owner, opaque accounting, general assemblies never convened, voted works never carried out, massive unpaid amounts without recovery. The consequence: accelerated deterioration of buildings, especially in the large residential complexes delivered in the early 2000s.
Law 106-12 was conceived as a corrective text: to professionalise governance, provide financial transparency, facilitate useful votes (notably energy-saving works, in line with Morocco's climate commitments), and toughen penalties. It does not redo everything — it amends and supplements the 2002 text.
2. The bodies: union council and property manager, what changes
The major contribution of the reform concerns operational governance. Under law 18-00, the union council was optional: many buildings had none, leaving the property manager alone facing the assembly once a year. Law 106-12 makes the setting up of the union council mandatory beyond a certain number of lots and clarifies its prerogatives — control of management, assistance to the property manager, right of access to documents.
The status of the property manager is also regulated. For condominiums of a certain size, recourse to a professional property manager (a legal entity carrying out the activity on a habitual basis) becomes the rule, with the volunteer manager still possible but discouraged. The manager's contract must be written and precise on the missions, duration, remuneration, and conditions for renewal and removal. This long-awaited professionalisation aims to end conflicts of interest and opaque management.
| Theme | Law 18-00 (2002) | Law 106-12 (2016) |
|---|---|---|
| Union council | Optional | Mandatory (large complexes) |
| Property manager | Most often a volunteer | Professional encouraged, contract regulated |
| Works fund | Not provided for | Built up progressively |
| Energy saving | No specific regime | Lighter majority to facilitate |
| Recovery of unpaid amounts | Classic judicial route | Strengthened legal mortgage |
| Penalties for defaulting manager | Little deterrent | Fines provided for, increased liability |
3. The works fund: anticipate rather than endure
One of the most important innovations of law 106-12 is the introduction of a works fund built up progressively. Under law 18-00, when a major job arose (facade renovation, waterproofing repair, lift replacement), the property manager had to make an exceptional call for funds, often experienced as a shock by co-owners: 30,000 to 80,000 MAD to pay out within a few months for a standard apartment.
The new logic is anticipatory: from a certain age or size, the building must build up a works fund annually, at a percentage of the running budget. This fund is pooled and remains attached to the lot — it is not refunded on sale. For the co-owner, it smooths cash outflows; for the condominium, it is the assurance of being able to finance major works when the time comes, without a crisis.
4. Eased majorities: unblocking useful votes
Law 18-00 imposed heavy majorities for certain works, which led to permanent deadlocks in the general assembly. Law 106-12 eased the voting conditions on matters considered to be of general interest:
- Energy-saving works (insulation, common double glazing, solar panels on a common part) — simple majority instead of qualified.
- Accessibility for people with reduced mobility (ramps, adapted lifts, signage) — simple majority.
- Fire-safety upgrades (emergency exits, smoke extraction, detection) — easier voting as a regulatory imperative.
- Moderate embellishment (common painting, LED lighting) — simple majority if the expense is below a threshold.
On the other hand, qualified majorities (2/3 or 3/4) remain for impactful matters: adding floors, selling a common part, amending the condominium by-laws, changing the shares. And unanimity remains to dispose of essential common parts or to change the building's purpose.
5. Penalties and recovery: the condominium is no longer lax
The reform strengthens recovery tools and penalties. The union's legal mortgage over the lot of a co-owner in arrears is confirmed and facilitated — it takes rank as soon as it is registered in the land register and guarantees payment in the event of a sale. The property manager can, on the basis of the assembly minutes approving the accounts and identifying the unpaid amounts, quickly initiate recovery procedures (formal demand, injunction, protective seizure).
On the manager's side, liability is increased. A manager who does not convene an annual assembly, does not produce the accounts, or does not carry out voted works may have their liability engaged. For professional managers, administrative fines are provided for, and the condominium may seek, in summary proceedings, the appointment of a provisional manager as a replacement.
Audit of your condominium under law 106-12
Verification of compliance with the reform · Action plan · Report to support your position with the assembly and third parties
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