Why do I have to pay a Community of Owners fee?
· 4 min. read
To begin with, we must first know what a Community of Owners is. The Community is the entity made up of all the neighbours, owners (of dwellings and commercial premises) of a building or development that manages their rights and duties with respect to the common areas.
Each owner can participate (mainly by voting in the meetings where decisions are taken) according to the quota he/she pays. This fee is a coefficient that is calculated depending on the square metres owned.
What is included in the payment of the community fees?
All the expenses of the common areas are included. For example, municipal expenses such as rubbish collection, or general expenses such as lift insurance, garage maintenance, the caretaker’s salary, communal lights, etc. Here we come back to the quota because each neighbor pays according to the amount that corresponds to him/her in application of the law and the approved budget.
Is there a legal framework in Spain that regulates the Communities?
For those who buy a property in Spain it is sometimes difficult to understand that, in addition to the individual property taxes, they will have to pay monthly community fees.
This is not the case if you buy a detached villa that only pays its own expenses. But if you live in a “condominium” (building) you must apply the Horizontal Property Law of the Civil Code in force since 1960. Likewise, if you live in a group of villas, an enclosed urbanization, with streets, security, gardens, swimming pool or any common element, this law also applies.
What happens if I do not pay the Community fee?
In case an owner does not pay any of the community fees, he will lose his vote in the meetings, even if it is only one fee. In addition, he/she will appear on a list of outstanding payers that can be seen by the rest of the owners. Without paying what is owed before the Community meeting, officially called by letter, you will not be able to vote according to article 15, paragraph 2, of the Horizontal Property Law.
The owners can vote on very important issues and if they are not up to date with their payments, they will not be able to influence the decisions. The Community can approve large special payments for major repairs, dismiss an employee, change the legal Administrator of the property, or even take an owner to court for non-payment of Community fees.
What can be done with the neighbors who do not pay the maintenance of the Community?
When an owner does not pay the fees (which also cause interest for late payment) the other owners can demand that they be paid through an arbitration procedure or through a lawsuit.
In fact, when buying or selling a property, one of the most important documents is the “Certificado de estar al Corriente de Pago” from La Comunidad. If this is not the case, the new owner will assume what is owed, so it is better to demand this certificate before buying a property or to agree beforehand who will pay the outstanding amount before signing.
Why is it important to be in good hands when buying or selling a luxury property?
Properties can accumulate other debts, not only from The Community, and it is important to have a good legal advisor guiding our steps so that there are no unpleasant surprises.
At Christie’s International Real Estate – Madrid, Malaga & Marbella, we pride ourselves on honesty. We are very scrupulous in giving our clients a true picture of where the luxury properties in our portfolio stand. Of course, we take care of all the paperwork associated with the sale and purchase, in accordance with the law, and will advise if there are any anomalies. Do not hesitate to contact us.
To read more about the Community of Owners follow our blog.