Owning a Property in Spain is much different than owning one in the UK. Among the many differences is the Neighbours Committee and the Community Fees
Any property in Spain which is covered by the Ley de Propiedad Horizontal is obliged by Spanish law to have a Neighbour’s Committee. This idea usually starts the alarm bells ringing for many expats, so this blog is to clarify some legal and practical aspects. This same Law, the Horizontal Property Act (Ley de Propiedad Horizontal), very closely controls how the committee is to carry out its duties.
Any property that forms part of a communal Spanish real estate ‘whole’ and that is divided between various owners or an urbanisation with external limits and some common areas such as a swimming pool, like most Spanish properties, then the law applies to those properties.
What does the Committee do?
One of the most important functions of the Committee is to fix the budget of community costs for the coming year for the common property, and from there organise, yearly or half yearly quotas for which each household will have to pay maintenance of the property and services.
Another function is to set the rules of the community and enforce them. This is where many people feel they are being dictated to. But the idea is to avoid friction between neighbours before it starts by setting some agreed guidelines and limits. The scope of action here is wide, here are a few aspects of the property requiring coordination:
swimming pool rules,
parking,
cleaning,
External appearance of the property. (Town Halls like properties in Spain to ‘co-ordinate’ as much as possible. Very appearance-conscious people, the Spanish)
Structural work,
noise,
pets,
security
Who makes up the committee?
A committee is usually composed of a Community President, Vice president, Secretary and a number of ordinary members. All of these are elected by the property owners from among the property owners themselves. All the property owners have the right to a vote, providing they are fully paid up. One household: one vote, Elections normally occur once per year.
Electing The Community President
Elected at the AGM, either by vote as per the rest of the committee; or s/he can also be determined by literal ‘luck-of-the-draw’ (the Spanish love their lotteries), or by rotation. This means that you could be obliged to be the Community president for a year whether you want it or not! And it is not easy to get out of this either.
This post can be a time consuming and unappreciated, thankless job. This person is also, at the end of the day, the legal representative of the community of property owners. He will also normally be the official key holder.
The Committee:-What are the committee’s obligations and rights?
Basically, they are there to ensure the smooth running of the community of property owners by:
Implementing decisions taken at meetings.
Agreeing budgetary expenditures. The annual budget.
Ensuring that the Administrator is doing his duty.
Making decisions on day to day issues that come to their attention.
Organising extraordinary general meetings when needed.
Informing other property owners of important decisions or changes that have to be made.
If necessary, using legal channels to enforce commonly agreed rules.
This means they have to organise committee meetings on a regular basis, and make decisions that can sometimes be difficult. They are governed by two sets of rules. The obligatory statutes and the Internal Community Rules, which basically means the general consensus decisions of the community.
Who is the Administrator, and what are his duties and obligations?
This person is a professional who should belong to the College of Administrators (Colegio de Administradores de Fincas Rústicas y Urbanas). He will therefore be able to give you his College (colegiado) number. This means he is trained and qualified to administrate property in Spain, or Spanish real estate of any kind. But his main source of income is usually from acting as the official Administrator for a number of neighbourhood committees.
He will normally have his own office and secretary, etc. He is elected on a yearly basis at the same time as the committee of the Community. His role is to help the committee realise its functions correctly and legally. He does this by:
Attending all the meetings (as far as possible) and advising on legal aspects of decisions.
Managing the bank accounts.
Balancing the community accounts; receipts and outgoings.
Issuing the end of year financial statement.
Other financial functions such as getting quotes from suppliers.
Issuing invoices.
Charging the quotas from the property owners.
Chasing bad debts. etc.
Other administrative duties such as making sure information, such as the Internal Rules (Régimen Intern) are available for all households.
Making sure general and extraordinary meetings are notified correctly and legally to all householders, including those who are not resident, because their Spanish property is just for summer use or rent.
He is often a key holder for all general doors and gates and for access to such areas as electric, gas, water, telephone meters, community water supply areas, television cable distribution points. etc.
He will oversee any work being carried out for the community property.
He is also a useful focal point when a property owner needs some help or advice, particularly if the president is not available.
Meetings, Annual General Meetings (AGMs) - Extraordinary and Ordinary
AGMs must be held at least once a year. Notice of the meeting is sent to property owners in Spain or overseas and must arrive a minimum of 6 days in advance
Extraordinary meetings require the same rules as the AGMs (except, of course, the bit about ‘once a year’)
There must be an agenda sent with the notice. This agenda must include voting-in of the committee members and, if applicable, nomination of the president. The agenda must include election of the Administrator. Remember, this post is in effect a contract for one year between the Administrator and the Community.
Voting at the AGM and other general meetings
Each item is voted by raised hands when the president or Administrator decides that enough time for discussion has been allowed. Straight majority wins. If you cannot be present, you should send your proxy vote to another resident of the community or the Administrator before the date of the meeting.
The Community president presides this meeting, but in practice it is usually the Administrator who runs it, because he has the experience and know-how. However he must back down if the Community president insists on presiding the meeting.
You cannot vote after the meeting. The law does not allow for a meditation period. All votes must be counted at the meeting itself. The meeting sometimes decides to postpone a vote to the next meeting if consensus is not reached.
A reasonably short time after the meeting, a summary of the meeting and decisions taken will be sent to all the property owners so they know what the majority want them to do, or not do, with their little piece of Spanish real estate.
What are the Community Fees?
The Community Fees, (el pago de la comunidad) are twice yearly, according to the Community Statutes. They are the payments made by each household to comply with the Budget.
An important point for buyers of second hand Spanish real estate is to check that the property they are about to sign for has la comunidad fully paid to date. This is one of those transferable debts. It comes with the property itself, and will fall to the new owner, to pay any outstanding amounts!
The Budget (Presupuesto) is the estimated costs for the coming year for the whole community. The money goes to pay a number of things. But generally we can say that the budget covers
the commonly owned real estate has to be lighted, maintained, and cleaned
Pools have to be looked after.
Electric and water bills etc have to be paid.
The Administrator costs
Resident’s debts on costs
Owners should arrange the correct and prompt payment of the Community Fees. Spanish Law has fixed that this must be paid within a reasonably short period. Non-payment is taken to court very quickly and is treated as a priority case. If non payment continues, then the court can issue an embargo on your property against payment, and will add all sorts of costs on top!
This means that you must make arrangements with your bank about payment of the Community Charge if you plan to be absent from your Spanish property for any length of time. It also means that you would be ill-advised to withhold payment because you have an unresolved dispute with the community.
How can I become a member of the committee?
Make some friends before the general meeting.
Be bold. Put yourself forward. Nobody is going to suggest you.
Remember that you cannot stand for any post if you are not physically present at the meeting.
Re-election is fine, unless the internal rules do not permit it. This is often the case with the Community president, who is usually replaced each year. Administrators are almost always re-elected, unless they have done a really bad job.
