What are building service charges in Lebanon, who sets them, and what do they cover?

Also asked as: “building service charge lebanon” · “Who decides the building fees in an apartment block in Lebanon?” · “What do building charges cover in Lebanon?” · “Do I have to pay the building committee in Lebanon?”

Who sets the charges#

Service charges in a Lebanese apartment building come from the co-ownership law, Legislative Decree No. 88 of 16 September 1983^[1,2], which is often miscited as "83/88". We read its text on a lawyer's website and in a 2010 Army magazine article, not in the Official Gazette, and parts of it have been amended since (Art. 77 by Law 671/1998, for example). Before you rely on any article in a dispute, ask a lawyer or notary to confirm the current wording.

Once a building has more than three private units^[1,2], its owners form a general owners' association by law, and nobody has to set it up. More on how it works is in the rules for owners' associations.

The association must elect a president by secret ballot as soon as it is formed, and it must meet at least once a year^[1,2]. The president keeps the accounts and presents the annual budget for approval between one and three months before the end of each year. All money received must go into a bank account in the association's name^[1]. Administrative decisions pass by an absolute majority of owners' votes in the first session, then by a majority of those present in the second.

Votes follow shares. Each unit's rights and duties in the common parts are a number out of 1,000, and each owner has as many votes as their share^[1]. This system is separate from the 2,400 shares used to count ownership of a property. According to the Army magazine's summary of the decree, changing those shares needs the unanimous vote of the owners^[2]. The sources we read do not explain how the share out of 1,000 becomes each owner's bill, so ask the president how the budget is divided. The wider framework is in what Lebanon's co-ownership law says.

What the charges cover#

Under the decree, keeping up, repairing and replacing shared-service equipment is an administrative matter for the association. That covers motors, lifts, heating and cooling, and shared water, telephone and electricity installations, along with the supplies needed to run them^[1,2]. Common parts include the land, structure, entrances, facades, stairs, sewers, lifts and top roofs, and also garages, gardens and shared installations. Counting a building generator among the "motors" is a reading of the text; the decree does not name generators. For the generator itself, see who pays for the generator and common-area electricity.

Big works are paid for with special advances that the association decides^[1,2]. Installing new equipment or machines needs at least 75% of the owners' votes. We found no source giving typical service-charge amounts or a usual list of what buildings include in them. Only the building's president or managing committee can tell you what your building charges and why.

Tenants, buyers and unpaid charges#

The enforcement rule targets owners. If an owner does not pay their share within ten days of a warning, the warning counts as a written instrument, and the president or manager can collect the debt through the enforcement department^[1,2]. The decree does not say whether an owner can pass the charges on to a tenant.

Sources also differ on property charges in post-1992 leases. Adala Law Firm puts municipal fees on the tenant and built-property tax on the landlord. Jaber Law Firm says the landlord pays taxes and other dues unless the contract says otherwise. Neither mentions building service charges^[4,5]. The Dahye municipalities union says a lease registered with it must state the services the owner provides and their price, if any^[6]. Write the split into your lease, and see who pays the bills in a rented flat.

If you buy, notify the administrator within 30 days and deposit the official documents that prove your purchase. Until you do, the former owner still represents the unit in the assembly^[3]. According to Kallas Law Firm, if notice is not given, the assembly may recover service charges from either the old or the new owner.