2 jul 2008

Obligations of property owners within a residents' community

Residents' communities are legally defined by two texts; the Spanish Horizontal Property Act of 1960, reformed in 2003; and Article 396 of the Spanish Civil Code; as well as the Articles of Association drafted by the members of the community itself.

In accordance with the content of this legislation, the obligations of property owners can be summarised into the following points:

1. Obligations regarding conservation of the general installations

According to Article 9 of the Spanish Horizontal Property Act, property owners must respect the general installations of the community and all other communal elements, whether for private or public use and whether included or not in their property.

2. Participation quota

According to Article 9 of the Spanish Horizontal Property Act, property owners must contribute to the general expenses for the appropriate upkeep of the building, its services, charges and liabilities that are not subject to individual application.

3. Reserve fund

The reserve fund is a sum of money taken from the contributions made by all the property owners and which is set aside for extraordinary costs, maintenance work or repair to the property.

4. Communication obligations

Locating a resident to inform them that they are in arrears with their payments or to inform them of when the next residents' meeting will take place does not normally create serious problems in these residents' associations because their primary home is usually the property within the community.

5. Change of ownership

In the event that the property owner decides to change the ownership of the property, this must also be communicated to the secretary of the community.

If this is not done, the original owner shall continue to be liable for the corresponding economic obligations.

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