Introduction

A Community of Property Owners is a mechanism of self-regulation common in continental Europe and in the USA but unusual in the UK except in up-market apartments. When a number of people own land or buildings in such a way that they have exclusive use of part of the property, but a shared use in the remainder, a comunidad is created.

In a comunidad the owner holds the house or apartment outright and shares the use of the remaining areas as part of a community of owners. It is not only a shared pool or TV aerial that is jointly owned but any lift shafts, common corridors, entrances and parking areas. While members of the comunidad are each responsible for their own home, they collectively agree the action required upon those common areas and become responsible for paying their share of common expenses.

The community is managed by an elected committee which appoints a president and secretary, both of whom are residents in the community. Day to day management can be delegated to a professional administrator, who need not be a resident in the community.

How It Works

The community of property owners (comunidad de propietarios) is regulated by the Law of Horizontal Property (La Ley de Propiedad Horizontal) which was passed in 1960 and amended in 1999. Some urbanisations of detached villas do not come under the Horizontal Law as roads, drains and lighting may serve the public as well as residents, thus requiring collaboration between owners and the town hall. One of the provisions of the 1999 amendment makes it easier for them to use the protection of the Horizontal Law.

A property contract, the escritura and the law surrounding communities binds an owner to the actual community regulations.

A property owner requires no more than an understanding of the legal principles. There are many English language translations and interpretations of the law itself, suitable for those who seek appointment as president or a committee member. For the president in particular, the only legally appointed person, a full understanding of procedural issues is necessary for there are many minority groups seeking to trip up the unwary.

Common Areas

When the word urbanisation is mentioned it will always mean a community of property owners. It is by far the most common form of property ownership for foreign buyers in Spain. In an urbanisation the communal areas can include roads, gardens, swimming pools, communal satellite TV systems and possibly, in composite developments, a small marina or golf area.

The common areas in an apartment block are the lifts, lobby, stairs, foundations and the roof. Any property that shares facilities will automatically become a member of the relevant comunidad. Fully detached villas, fincas and town houses in a public street have no shared facilities and therefore do not form part of any community.

Registration

Each comunidad is registered at the local property registry for each town, with a set of statutes defining common areas. By law it should also hold at least one general meeting of all residents each year, and elect one of its members as its president and one as secretary, both assisted by a committee. Large communities will have a more complex structure, often employing a professional administrator to carry out management of the urbanisation. In mainly foreign-owned urbanisations this role is often taken on by a development company or an administrator first appointed by the developers on behalf of the community.

Administrador De Fincas

This is a licensed property administrator belonging to a Colegio who handles property matters such as paying property taxes, managing rentals and ensuring records are properly kept. An administrador de finca is employed by property owners to ensure the community’s affairs are handled professionally. They may manage several communities, may be part of an estate agency or even a subsidiary of a developer.