🏢 What is the Permanent Working Fund in a Condominium (Belgium)?
The working fund is a cash advance made by the co-owners to cover the building’s regular and recurring expenses.
It allows the property manager (professional or volunteer) to have a financial reserve available to pay day-to-day bills without having to wait for all co-owners to pay their contributions.
💡 Purpose of the Working Fund
The working fund covers recurring and predictable expenses, for example:
Maintenance of common areas (cleaning, gardening, elevator)
Energy, water, and insurance bills
Property manager’s fees
Minor repairs
Maintenance contracts (boiler, garage door, etc.)
🧾 How It Works
The amount of the working fund is set by the general assembly.
Each co-owner contributes an amount proportional to their share, as defined in the deed of division.
The fund is deposited into the condominium’s bank account.
When a unit is sold, the seller is reimbursed for their share of the working fund.
The buyer then pays their own share into the fund (unless otherwise agreed upon in the sale).
⚙️ Legal Basis
The working fund is provided for in the Belgian Civil Code, Article 3.86, §1, 4° (formerly Article 577-8 of the Civil Code).
In a condominium, there is often also a reserve fund. Please click the button below to read more about it.
Information provided strictly for informative purposes.