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Property/House & Garden back print tell a friend
Buying with debts owed to the residents’ community

By:
Tómas Ballestero

When buying a property or commercial premises we sometimes come across the problem that the building has certain charges that have not been settled. One of the most common problems is the apartment or locale having outstanding debts, in the form of community fees, that should have been paid to the corresponding residents' community.
This is when the question of "who should pay" arises - the new owner or the vendor?
The answer depends on the number of years the debts refer to. According to article 9 of the Ley  de Propiedad Horizontal (LPH) each owner must contribute towards the general costs of the community in accordance with the quota of participation for the part of the building he owns.
The same ruling decrees that the purchaser of a property or locale, even though the deeds are registered with the Land Registry, is responsible for paying outstanding community fees for the part year the sales/purchase transaction took place and also the previous year. For example, if the new owner purchased a property in March 2004 and the previous proprietor had not paid the community fees, the new owner is obliged to pay the outstanding quotas from January 2003 until March 2004.
The apartment or locale acquired is legally attached to the obligation to pay. Therefore, the new owner must pay the quotas corresponding to the months elapsed during the year of purchase and the debts outstanding from the previous year.
However, at the time of signing over the title deeds to the property,  the vendor is obliged to declare that the community fees are paid up to date or if otherwise, the exact amount owing.
Without this certificate clarifying the situation regarding the community fees, the notary cannot authorise the title deeds unless the purchaser specifically releases the vendor from this obligation.
Furthermore, LPH decrees that the person who carries out the secretarial duties for the residents' community (normally the administrator) is obliged to submit this certificate within seven days after notification, following its verification by the community's president. These two members of the community are responsible for the accuracy of the document and are advised of the possible damages that could be caused through delaying issue of same.

The Tomás Ballestero Abogados Office recommends that before purchasing a property or locale, you make certain beforehand that the community fees have been paid up to date by asking the administrator to issue a document certifying that the property is free of debts to the community.

 


Friday, December 3, 2004

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