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With all new property developments in Spain it is a legal requirement
that the purchaser becomes a member of the Community of Owners - the Comunidad de
Propietarios - what we would term in England a Residents Association, but with the full
weight of the Law behind it. The Comunidad de Propietarios have their own rules, which
will be set out in a document supplemental to the Contrato known as the Estatutos. Often
the Estatutos are not finalised until the development is completed. Baily Gibson have
available on request an example of a basic set of Estatutos, but of course there will be
variations for each development and the solicitor/abogado acting for you has therefore to
study the Contrato Privado about the Estatutos and obtain a copy of the Estatutos for the
development and advise you accordingly.
Owners of apartments or villas in an "urbanization" are
jointly responsible with the other owners in the building or the estate, for the expenses
of the community. Usually, each owner's percentage of costs is fixed by eg. the size of
each apartment, or plot, dividing the total area of all the apartments or plots on the
development. Expenses, however, can vary substantially, according to the services required
by the community, which might for example include salary of a hall porter, garden and/or
swimming pool maintenance, lift maintenance, repairs, electricity for lighting in common
areas, insurance, refuse collection and management/administration fees. Accordingly, your
legal representative should make enquiries on your behalf as to the method of fixing of
the community charges and the amount payable and provision for review of the charge.
By Law the Comunidad de Propietarios elect their own Chairman (Known
as the President), and appoint an administrator who can be a paid official. Where the
development consists mainly of holiday homes it is generally a professional property
manager who, at the Annual General Meeting would present the budget for the forthcoming
year. The administrator is frequently elected from one of the residents at the
development.
The Annual General Meeting is all important because at that meeting
the payments for maintenance are discussed and agreed. If you are unable to attend in
person at the meeting you can appoint a proxy known as a Poder - by an Escritura de Poder
de Compra or Venta - to attend and vote on your behalf.
There is usually also a sinking fund, into which payment has to be
made to provide for the repair of all jointly owned properties, which is known as
"Elementos Comunes". This does not include personal repairs, such as the
guttering and roofing to your particular property, which are known as "Elementos
Privativos".
Each development has its own annual charge which can be around
£450.00 per annum per property in popular resort developments, but lower elsewhere. Each
agreement for the Comunidad de Propietarios states in it which properties are involved and
has a list of the regulations to which they are bound. Each community and development is,
of course different, but where footpaths, roads and lights have been provided by the
developer their maintenance is part of the responsibility of the community, as is the
drainage system: even time-sharing purchasers have to be members.
The Chairman of the community takes the chair at the Annual General
Meeting. He is appointed annually from the members so must be known to them. The Chairman
together with the administrator are the authorities for agreeing for work to be done,
giving orders and signing any documents that may be necessary. Full minutes should be kept
by the administrator who also maintains a register of the members of the community and
their individual addresses. The main duties of the administrator are to ensure that the
communal parts, the units, the utensils and fixtures and fittings are kept in a good state
of repair and condition, and are kept clean and tidy to ensure that the gardens, swimming
pools, tennis courts etc., are maintained to a satisfactory condition, that all the
furniture, fixtures and fittings are insured, and all rates, taxes, assessments and
outgoing charges imposed or assessed in respect of the community have been paid, and that
each member pays his share. The original Estatutos can always be altered by a resolution
at the Annual General Meeting, providing that the relevant notice has been given, A two
thirds majority is generally required for any change to be made.
The Head of our Spanish Department is an Abogado, Susana Díez
Urquiola, member of the Bilbao Bar. Her services are part of Baily Gibson and she able to
give legal advice on areas of Law relating to the Community of Owners' Internal Rules and
Regulations and information regarding General Meeting and attendance, if required.
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