The sale of immovable property to non-citizens has been a consistent source of foreign direct investment in Mauritius since the introduction of the first investment promotion schemes in the early 2000s. Most real estate projects implemented under these schemes are governed by a legal regime known as co-ownership, where investors purchase private units forming part of a jointly owned plot of land or building, and not independent freehold property.

Purchasing property in co-ownership comes with obligations and duties, such as paying levies for the maintenance of common parts or abiding by co-ownership rules. It also comes with rights, such as access to common facilities and voting rights in relation to the management of the property. At the end of the day, co-ownership is a legal framework, and a proper understanding of the rules and principles that make this legal framework is necessary for efficient property management.

This article seeks to assist any person looking for a clear introduction to matters of co-ownership. Its aim is to explain what the core components of co-ownership are and how they are meant to interact with each other, while addressing common practical issues. Our team regularly works alongside co-owners, syndics and syndicates in matters of co-ownership. For any issue not addressed by this article, please feel free to contact us.

1. What is property in co-ownership?

Property in co-ownership refers to a plot of land or building divided into common parts and private units.

Common parts are those portions of the land or building established for the use of all co-owners, and private units are those established for the use of a single co-owner. The layout and extent of common parts and private units are usually set out in each co-owner’s title deed.

In an apartment or commercial building, common hallways, stairs and elevator shafts are examples of common parts. In a residential project, typical examples are the property’s access roads and their sidewalks or the land between private units.

2. What are the components of co-ownership?

Co-ownership revolves around four components: the syndicate, the syndic, the syndic committee and the co-owners themselves.

The syndicate is a legal entity comprising all co-owners together and is the owner of the property in co-ownership. 

In summary, the syndic is the person appointed to act as the syndicate’s representative, secretary and executive. The syndic’s main duties are to implement the syndicate’s decisions, to act as the syndicate’s representative and to keep all of the syndicate’s records, such as its accounts or contracts.

The syndic committee is a group of persons appointed by the syndicate, whose core duty is to oversee the syndic’s activities and report to the syndicate.

Co-owners are the persons who own private units.

3. How is property in co-ownership managed?

A syndicate takes decisions by way of resolutions at general assemblies of co-owners. Any decision pertaining to the administration of the property, such as the costs for the maintenance of common parts, the security of the property or the appointment and removal of the syndic, should be taken by way of resolution at a general assembly of co-owners.

The law provides that co-owners should meet once a year at annual general assemblies of co-owners in order to approve an annual budget, which is meant to cover the running, administration and maintenance costs of the property. Subject to certain requirements, co-owners also have a right to request special general assemblies to be called at any time.

Much like meetings of directors and shareholders in a company, specific rules and procedures govern general assemblies of co-owners. The law provides for different majority requirements depending on the resolution to be voted and there are also specific rules regarding agendas and notices of meetings, among other matters. The point of this article is not to go over each and every one of these procedural requirements, but to explain that co-owners and syndics should understand the applicable rules if they want to exercise their rights without exposure to liability.

4. How does each co-owner contribute to the management of the property?

In order to pay for the implementation of decisions taken at general assemblies, co-owners should agree on a budget. This can be an annual budget approved at an annual assembly or a single expenditure at a special assembly, but the rule is that any expense to be incurred by the syndicate should be agreed upon.

The law provides that each co-owner has to contribute a share of the approved budget by paying co-ownership levies. The rule is that levies should be proportional to a co-owner’s unit size. The larger the unit, the larger the levies.

Co-ownership levies are due to the syndicate and collected by the syndic. The syndic should keep an account in respect of each co-owner, clearly setting out any arrears. The syndic has the capacity to initiate legal action for the syndicate to recover unpaid levies.

5. What are co-ownership rules?

Although the law contains a number of mandatory provisions regarding the management of property in co-ownership, these provisions are often complemented by written rules called “co-ownership rules”. 

If we were to compare a syndicate to a company, co-ownership rules would be its constitution. Co-ownership rules can provide for additional functions of the syndic committee or for assemblies to be held at more frequent intervals than once a year.

Co-ownership rules are generally a good source of guidance for co-owners to understand how their property should be managed and should be available from their title deeds.

6. Frequently asked questions and common issues

My title deed and the co-ownership rules do not specify whether this portion of land forms part of my unit. Does it constitute private property or common parts?

When title deeds are silent or conflicting about the nature of property, the rule is that this part of the property is deemed to constitute common parts.

My co-ownership levies are too high. What should I do?

The rule is that all co-owners should pay their respective share of the co-ownership levies. A co-owner cannot, at his or her discretion, decide not to pay levies when these levies arise from a budget duly agreed at a general assembly and supported by relevant documentation (invoices, service agreements etc.). A co-owner may, however, suggest changes to the administration of the syndicate in order to reduce costs, and therefore reduce the levies, at the next general assembly.

How do I cause a general assembly to be called?

The first step is to consider the provisions of your co-ownership rules. The law provides that one or more co-owners can request the syndic to call a general assembly at any time, provided they represent at least one quarter of the votes of all co-owners, or such lesser majority as may be stated in co-ownership rules.

If you do not, or cannot, reach the necessary majority threshold, another solution would be to ask the president of the syndic committee to send the request to the syndic. The president of the syndic committee has the right to request the syndic to hold an assembly at any time.

The request should specify the agenda for the assembly.

One exception to the above is that a co-owner may request an assembly at any time, if the assembly concerns only the rights and obligations of the said co-owner.

My syndic is not performing its duties. What should I do?

The necessary steps can be taken at a general assembly for the appointment of a new syndic. Legal actions to recover damages can also be taken against a syndic that does not fulfil its duties.

I am dissatisfied with my co-ownership rules. What should I do?

The rule is that co-owners can agree to amend their co-ownership rules at general assemblies, subject to certain majority requirements and specific processes being carried out, depending on the nature of the amendment.

Issues that require remedial works have arisen in my property. What should I do?

The first step is to determine where the issue has arisen. If works are required in your private unit, you can cause remedial works to be carried out and should, as a rule, bear the costs thereof. If works are required in common parts, the syndicate should carry out the works and bear the related costs.

This article was prepared for informative purposes and only addresses general principles under the applicable Mauritian law at the date of its publication, which may be subject to exclusionary rules when applied on a case to case basis. It only provides a general overview and does not constitute or replace comprehensive legal advice, which we recommend you seek before taking any action on a matter of co-ownership.