In this post, we will cover the main characteristics of the community of homeowners, called Comunidad de Propietarios. In Spain, not only flats but also sometimes detached houses are part of an urbanization, and each urbanization has its own homeowners’ association that unites all the owners of the complex/residential area.
What is the so-called Ley de Propiedad Horizontal?
The Spanish legislature established the basic legislation in the Law of Horizontal Property (Ley de Propiedad Horizontal). In addition to this basic law, the day-to-day operation of the Community is determined by the rules set forth in the Community Statutes.
Can the bylaws be amended?
Amending these Bylaws is extremely difficult. Indeed, the law requires unanimity of the community. For this reason, it is common to establish internal rules (Normas de regimen interno) in addition to the Statutes. These are organizational regulations that are not set forth in the Bylaws (e.g., opening hours of the community pool) and therefore do not require unanimity. A simple majority of the owners is sufficient to amend or draft it.
What is my part in the community?
When the community is created before a notary and the articles of association are drawn up, each property is allocated a quota or a percentage in the community. This percentage includes both the private part of each owner and a share in the common parts of the urbanization or complex. Your quota or percentage can be found in the Community Statutes or in your property deed. This percentage is important for two reasons:
- Community operating expenses are distributed according to this percentage. So, the larger your percentage, the more you will pay for the cost.
- Your vote in the Community General Assembly depends on your percentage. In some new complexes, the developer owns many apartments, often even giving him a majority of voting rights and thus the ability to impose his will on the other owners. Think about this when you buy a new apartment!
What obligations do I have as a co-owner of the Community?
The obligations are neatly enumerated in the law, but the most important, of course, is contributing to the maintenance of the community. Failure to pay the dues will eventually lead to legal action that may result in the seizure and public sale of your property. Since the outbreak of the economic crisis, numerous properties have already been auctioned to meet contributions to the Community of Owners. It is important to point out that the law requires every community to establish an annual savings pot in order to cope with heavy costs. This could include renewing the elevator, roads, extensive painting, etc.
If I buy a property, what happens to the debts of the previous owner?
The debts of the community contributions are attached to the home. So these debts simply pass to the new owner,but with a time limitation, limited to the debts of the year of purchase and the previous year. For this reason, it is extremely important to verify these debts before buying your property. This amount can be deducted from the purchase price, and for the foregoing reason, a Community Certificate is also attached to the title deed.
Who takes care of the organization of the Community?
Each Community has a General Assembly of Owners, a President, a Secretary and an Administrator. The President is one of the co-owners and the secretary and administrator in most urbanizations is left to a professional office with the necessary qualifications.
When will the meeting take place, how will I be called and will I be allowed to vote?
At least once a year, a General Assembly is organized. The law provides a minimum notice period of 3 days, but in most Communities, the Bylaws provide 1 or 2 weeks. It is important to check this so that you are called correctly and in a timely manner. Every owner who has paid his contributions neatly is allowed to vote and the voting right depends on the percentage in the urbanization. Voting by proxy is also possible.
I do not agree with an approved decision, what can I do?
The majority of the community can impose its will on the minority. Yet there are limits here. The decisions taken can be challenged in court in the following cases:
- Decisions contrary to the law or the Community Statutes
- Decisions that are very detrimental to the community and to the benefit of one or a few owners
- Decisions that are very detrimental to an owner or decisions made with abuse of rights
Comunidad
This word is used for many things but we know it primarily as “owners association. When you buy real estate you always have to deal with a comunidad. Commonly used roads and, for example, a swimming pool or garden must be maintained, the costs are borne by all owners, regardless of whether and how often you use it.
Therefore, you will not get out of it either. Always inquire in advance if there is a comunidad and what the monthly contributions are. If there is a provision fund you may have to ‘buy in’, annoying when you hear afterwards that you have to transfer a few thousand guilders.