Note

Community of owners debts when buying a property in Spain

§ 1The rule

The Horizontal Property Law says that the acquirer of a unit answers with the property for unpaid general expenses of the expired part of the current year and of the three previous calendar years. The seller must declare in the deed that they are up to date, and the community’s credits are preferential. The rule protects a buyer who uses it, and it is one of the topics in an overview of communities of owners.

§ 2What it covers

It covers general expenses: the ordinary costs of running the building such as cleaning, lift, insurance and maintenance, and the contributions to the reserve fund. Special assessments approved by the community can fall into the same category if they are for general expenses. Ask the administrator to list all amounts due, with their dates, and keep the list with your file.

§ 3What it does not cover

The rule is a limit on what attaches to the property. It does not stop the community pursuing the former owner personally for older debts, and it does not stop you from being liable for fees that arise after you become the owner. A debt for private costs, such as damage caused by the seller, is a different matter. Your lawyer can advise.

§ 4Certificate and declaration

Ask the seller to obtain the administrator’s certificate of the debt position. Ask also that the deed contains the declaration. If the certificate shows arrears, the contract should say that the seller pays them before the deed or from the price. The practical steps are in the due diligence chapter in this section.

§ 5The year of the sale

The fees for the year of the sale are usually split between buyer and seller according to the contract, or by custom, from the day of the deed. The rule on who pays is explained in more on who pays community fees.

§ 6Pending assessments

A derrama voted but not yet paid is a hidden debt. Ask about it. Put in the contract who pays each instalment, and ask the seller to confirm that no other has been approved. The details are in more on derramas.

§ 7Keeping a file

Create a folder for the community: statutes, minutes, budgets, the administrator’s certificate, receipts and correspondence. When you sell, the buyer will ask for the same papers, and having them ready speeds up the sale.

§ 8If a claim arrives

If the community or its administrator sends a demand after the deed, tell your lawyer, ask for the breakdown and compare it with the certificate and the deed. If the amount relates to the seller’s time, you may pay and then claim, and the contract and deed will matter. Keep every document.

§ 9More on this topic

More on community fees explains what fees cover and how to read the accounts and more on statutes and meetings explains how the community decides.

Legal note. How the process works in general. It is not legal advice, and it never replaces an independent Spanish lawyer acting for you.