A Community of Owners is composed of all the owners who have properties in the same building or resort.
The Community of Owners is regulated by the Civil Code, the Law 49/1960 of 21 July on Horizontal Property (LPH) and, where applicable, by its Statutes.
The rights that you have as an owner are the following:
- To attend the meetings of the Board of Owners and to take part in the approval of agreements in proportion to your respective shares in the Community.
- To take part, where appropriate, as electors or candidates, in the appointment of the Governing Bodies.
- To present the Governing Bodies of the Community with as many proposals as deemed appropriate for the best fulfilment of the object of the Community.
- To be notified of the resolutions approved by the Board of Owners at the address designated for this purpose.
- To be informed, to the appropriate extent, of all activities affecting the Community.
- To appeal against the resolutions approved by the Board of Proprietors in accordance with the provisions of the Horizontal Property legislation and other applicable legislations.
- To receive, in the event of dissolution and liquidation of the Community and in proportion to their respective participation quotas and the part of the Community’s assets that corresponds to them.
- To submit proposals and suggestions.
- Any other rights resulting from the Statutes, Horizontal Property legislation and other applicable legislations.
The obligations you have as an owner are:
- To respect the installations of the Community and other common elements, whether they are for general use or for the private use of any of the owners, whether or not they are included in your property, ensuring the correct use of them and avoiding, at all times, causing damage.
- To maintain your own property in a good state of repair, in terms that do not harm the community or the other owners, making reparations for any damage caused by your own carelessness or that of the persons for whom you are responsible.
- To consent to the repairs required by the building services in your property and to allow the easements (passageways, lighting, water drainage, etc.) essential for the creation of common services of general interest (lifts, porter’s lodge, concierge, security, etc.), having the right to be compensated by the Community for the damages caused.
- To allow entry to your property for the purposes of the above.
- To contribute, in accordance with your participation quota, to the general expenses for the adequate maintenance of the property, its services, charges and responsibilities.
- Contribute, in accordance with your respective participation quota, to the endowment of the reserve fund that must exist in the community of owners to attend to the conservation and repair works of the property. The reserve fund must be endowed with an amount not less than 5% of the last ordinary budget of the Community.
- From the reserve fund, the community can take out an insurance contract to cover possible damages caused to the property or enter into a contract for the permanent maintenance of the building and its general installations.
- To observe due diligence in the use of the property and in their relations with the other owners, as well as to answer to them for any infractions committed and damages caused.
- To inform the secretary of the Community of an address in Spain for the purpose of summons and notifications of any kind related to the Community.
In accordance with the Horizontal Property Law (LPH) it is obligatory to communicate any change in your details to the Secretary – Administrator of the Community.
Firstly, you must inform the Administrator of your intention with a detailed indication of the works you intend to undertake in order to receive their authorisation, once it has been verified that these works are not contrary to the applicable communal regulations; always bearing in mind that you may not modify the architectural elements of the property when they impair or alter the safety of the building, its general structure, its configuration or exterior condition, or prejudice the rights of another owner.
In addition, and prior to commencement, you must apply for and obtain all the Administrative Licences from the competent bodies, which are applicable to the work you intend to carry out.
Whenever you wish to install an element that alters the exterior façade of your property, you must request, prior to its installation, authorisation from your Administrator.
The governing bodies of a Community in accordance with the provisions of the LPH are:
- Board of Owners
- The President and, if applicable, the vice-presidents.
- The Secretary.
- The Administrator.
In such a case, you would become a defaulter of the Community, and the President of the same, if so agreed by the Meeting, would be entitled to take legal action against you. Also, and if foreseen, you would suffer the consequences derived from the Statutes of your Community.
Any owner is obliged to communicate to the Secretary of the Community, an express address in Spain for notifications. If this is not provided, the property owned in the Community will be considered as such and, alternatively, the notification will be posted on the notice board of the Community.
The law establishes that the seller must provide at the time of signing the Public Deed, certification issued by the Secretary and with the approval of the President on the state of debts with the community coinciding with their declaration, without which the execution of the public document cannot be authorised unless it is expressly exempted from this obligation by the purchaser.
The Board of Owners is the sovereign body of the Community and has the following functions:
- To define, approve and reform the Statutes and Internal Regulations.
- Appointing and dismissing the persons who hold the posts of President, Administrator and Secretary, as well as resolving any complaints made by the residents against the actions of the latter.
- To approve the budgets and the execution of repair work on the property or resort, whether ordinary or extraordinary.
- To know and decide on other matters of general interest for the community, agreeing on the necessary or convenient measures to improve the common service or for the benefit of the general interest, such as installing new services and taking action against those infringing community rules.
The Owners’ Meeting will be at least once a year.
An Ordinary Meeting is one in which it is obligatory to include as items on the Agenda, the approval of the budget and the liquidation, as well as the appointment of the President, Secretary and Administrator.
An Extraordinary General Meeting can be called to deal with any subject that the owners consider should be studied.
The General Meeting of Owners is called by the President or when requested by a quarter of the owners, or a number of owners representing at least 25% of the participation quotas.
All the owners except those in arrears, who lose the right to vote in the Meetings, as long as they do not pay their debts or have them judicially consigned, although they retain the right to participate and deliberate in the assembly.
No. Attendance at the Meetings will be personal or by legal or voluntary representation, with a written document signed by the owner being sufficient to accredit this.
It is a written document by which an owner authorises another person to participate in the Owners’ Meeting and to act, both in voice and vote, as if he/she were the owner.
No, you must elect a representative to attend and vote at the meetings.
The content and drafting of the Minutes books corresponds to the Secretary – Administrator as well as the custody of the same.
The President must be elected amongst the owners who are up to date with the payment of the community fees.
The President will be appointed by a majority of the owners at the General Meeting by means of a democratic election.
In the event that there is no one who wishes to be President and the previous President does not wish to maintain the post, a rotating rota will be established alternatively or the President will be appointed by drawing lots.
No. This is an unpaid position for which no compensation is received.
The main functions of the President are the following:
- To execute the resolutions of the Board of Owners.
- To expressly and compulsorily authorise any activity, whether temporary or permanent, on the common elements of the Community.
- To decide on the appropriateness of judicial, administrative, contentious-administrative and any other type of action in defence of the interests of the Community, as well as to agree on the separation, transaction or withdrawal of the proceedings initiated.
- To call, chair, suspend and adjourn the meetings of the Board of Owners.
- To represent the Community and its Governing Bodies in and out of court; being able to grant powers of attorney to lawyers and solicitors for the management and legal representation in the exercise of said representation.
- To authorise the minutes of the Owners’ Meeting, the certificates issued and any other documents required.
The usual form of communication with your President is through your Community Manager, who will deal with matters of interest, without prejudice to the fact that another channel of communication can be set up.
In order not to violate the Data Protection Law and to ensure the privacy of the President, you must first communicate with the Community Administrator.
A budget is a forecast of expenditure and income for a certain period of time, usually a year.
All homeowners’ associations must have their own budget.
The budget is approved by the Ordinary Meeting of Owners, being obligatory the inclusion of its approval as a point on the Agenda.
Any queries in this respect should be addressed to the Administrator of your Community of Owners, who is responsible for keeping the Community’s documentation at the disposal of the owners.
The Reserve Fund is the amount that the Community of Owners must maintain for the repair and conservation of the property or resort. It is an annual fund and cannot be less than 10% of the last approved budget, or the amount fixed by the Statutes, as the case may be.
The liquidation of the Budget is the comparison of what has been spent and what has been budgeted, the submission for approval of which must be included in the Agenda of the General Meeting of Owners.
The Chartered Property Administrator is a free and independent professional, with the appropriate training for the performance of their functions and who regularly and continuously administers the properties of third parties, whether urban or rustic.
The Administrator is elected by vote at the Ordinary General Meeting of Owners. The offices of Secretary and Administrator can be held by the same person.
Regardless of their training, the registered Property Administrator, through their Association, has taken out civil liability insurance for any liability they may have incurred due to omission or negligence in their professional actions. Apart from this, the Association exercises its disciplinary activity when the actions of its professionals deviate from professional or ethical standards.
The main functions of the Community Manager are to govern and conserve the community entrusted to them, and are set out in article 20 of the Horizontal Property Law.
To oversee the good management of the property or resort, its installations and services, and to this end to issue the appropriate warnings to the owners.
To prepare in due time and submit to the Board the plan of foreseeable expenses, proposing the necessary means to meet them.
To attend to the upkeep and maintenance of the property or resort, arranging for any repairs and measures that may be urgent, immediately informing the President or, where appropriate, the owners.
Execute the agreements adopted with regards to works and make the appropriate payments and collections.
To act, where appropriate, as secretary of the Board and to keep the documentation of the Community at the disposal of the owners.
All other powers conferred by the Board.
The Property Administrators must charge in accordance with the fee regulations of the Association of Property Administrators to which they belong, and any fees that deviate from the same may be reported to the corresponding Association and be submitted to the Deontological Commission in case proceedings are opened for unfair competition.
Yes, your Administrator can carry out as many functions as are entrusted to them by the Board, as long as they have the professional and material means to do so, but bearing in mind that the fees that may be accrued are not included in the normal fees, such as, for example, various translations, legal advice, management of the Community’s web pages, etc.
The post of Secretary is elected by vote at the Ordinary General Meeting of Owners. The posts of Secretary and Administrator can be held by the same person.
The main functions of the Secretary are: the custody of the documentation of the community, the reception of the changes of ownership in the property and the closing of the minutes with the President so that they are enforceable.