Repsol YPF

Coexistence in residents’ associations is not always conflict-free. Often, misunderstandings are to do with costs. It is not unusual for the accounts for a building or any housing estate to have outstanding debts relating to the communal areas due to one of the owners. Sometimes, residents’ committees do not know how to deal with non-payment. 

According to the law

However, proceeding according to the law is simple. The Horizontal Property Act contains the regulations for residents’ associations. Article 21 of this Act stipulates that, firstly, the residents’ committee must agree that the debt needs to be settled and send a letter to the late-paying owner telling them of the situation and exhorting them to pay the debt.

If the debtor does not respond to the notification by paying the debt, legal proceedings can be initiated, by making a claim at the court of first instance in the district where the building is located. The claim is made against the owner of the property. The person listed in the register is the person who is sued, regardless of whether the previous owner has agreed to joint responsibility for the debt. 

This procedure does not require a solicitor. However, whilst the law allows you to sue the late payer without a solicitor, it is not recommendable without the assistance of an expert, since any procedural error or delay in responding may mean that the residents’ association’s interests are not adequately defended and that they lose the case. Apart from that, the court costs, although they must be paid in advance by the association, may be recovered when the ruling is made.

This type of financial debt is claimed using an admonitory procedure. The claim must be accompanied by a settlement certificate, issued by the secretary and approved by the president. Then the court will request that the late payer either settles the debt or opposes payment. 

The fact that the claim is lodged with the court leads to a large percentage of debtors paying immediately. There are also debtors who continue to refuse to pay the debt and then the declaratory process begins.

However, it may be that the debtor neither pays nor opposes. In such cases, the courts may even rule that the property must be seized as a precautionary measure in order to guarantee the payment of the debt. 

One of the questions asked by new property owners is whether they are obliged to pay the maintenance costs owed by the previous owner. In order to execute the deed, the vendor of a property must provide a document signed by the secretary and president of the residents’ committee which states whether the flat is up-to-date with payments or how much is outstanding. Without this certificate, the notary will not authorise the deed unless the buyer agrees to relieve the vendor of this obligation.

With a voice but no vote

Whilst a resident owes money to the residents’ association they can attend meetings, take part in the debate and receive notification of the agreements, but they cannot vote. Meanwhile, if they try to sell the property, as mentioned above, a certificate will be issued stating that they are not up-to-date with the payments

Finally, the law provides for the possibility of late payment appearing in the association’s minutes, circulars and notifications, as well as on the notice board, for the purposes of dissuading late payment and pressurising the late payer into paying.

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