When buying a property in Spain, many foreign buyers focus on the price, the location, the condition of the property and the title deed. All of this is important. But there is another document that is often overlooked and can reveal very valuable information:
If the property forms part of a building, residential complex or urbanisation, the buyer is not only buying a private home. They are also becoming part of a community of owners (comunidad de propietarios). This means they may be affected by community rules, budgets, repairs, debts, disputes and future decisions.
What is the community of owners in Spain?
In Spain, buildings divided into apartments, premises, garages or individual units are usually governed by the Horizontal Property Law (Ley de Propiedad Horizontal). The law regulates the relationship between the private property of each owner and the common elements of the building or complex.
These common elements may include:
- the roof;
- façade;
- lift;
- stairs;
- garden;
- swimming pool;
- parking areas;
- communal installations;
- structural elements;
- shared services.
The community of owners is responsible for managing these common elements. Each owner normally pays community fees according to their participation quota.
What is the owners’ meeting?
The owners’ meeting, or junta de propietarios, is the meeting where the owners of the building or complex take decisions about the community.
Under Spanish law, the owners’ meeting has powers to approve budgets, accounts, repairs, appointments, community rules and other matters of general interest to the community. The Horizontal Property Law expressly regulates the powers of the owners’ meeting and the content of the minutes.
In practical terms, this is where the community may decide, for example:
- to approve ordinary community expenses;
- to approve extraordinary repairs;
- to impose a special contribution or derrama;
- to repair the roof, façade, lift or swimming pool;
- to take legal action against owners or third parties;
- to approve restrictions on tourist rentals;
- to discuss problems with noise, leaks, debts or structural issues;
- to appoint or replace the administrator or president.
What are the minutes of the owners’ meeting?
The minutes are the written record of what happened at the meeting. They usually include the date, attendees, agenda, discussions, agreements adopted and voting results. The Horizontal Property Law states that the agreements of the owners’ meeting must be recorded in a minutes book, and Article 19 regulates the minimum content of those minutes.
This document can be extremely useful for a buyer because it may reveal issues that are not always obvious from a viewing, an estate agent’s description or even the title deed.
Why should you ask for the latest minutes before buying?
Because the latest minutes can tell you what is really happening inside the community.
A property may look perfect, but the community minutes may show that the building has problems, that expensive works are being discussed, or that there are tensions between neighbours.
For example, the minutes may reveal:
1. Possible future special contributions
One of the most important reasons to review the latest minutes is to check whether there are planned or discussed works that may result in a “derrama”, which is an extraordinary contribution paid by owners.
This could include:
- roof repairs;
- façade renovation;
- lift replacement;
- structural works;
- swimming pool repairs;
- accessibility improvements;
- legal proceedings;
- major maintenance works.
A buyer should know this before completing the purchase. Otherwise, they may discover shortly after buying that they are expected to contribute to a significant community expense.
2. Building problems or maintenance issues
The minutes may refer to leaks, damp, cracks, façade problems, lift failures, garage defects, drainage issues or disputes with contractors.
These issues may not appear in the property description, but they can affect the value, comfort and future cost of the property.
3. Restrictions on use
In some buildings or communities, there may be discussions or rules about tourist rentals, short-term lets, business activity, pets, noise, use of terraces, air conditioning units or changes to façades.
This is especially relevant for foreign buyers who intend to rent out the property, use it as a holiday home or make alterations.
4. Debts within the community
The latest minutes may refer to owners who are not paying community fees, legal action for unpaid debts or financial pressure within the community.
Even if the seller provides a certificate confirming their own community fees are up to date, the buyer may still want to understand whether the community as a whole is financially healthy.
5. Conflicts between neighbours
Minutes can sometimes reveal disputes about noise, use of common areas, illegal works, water leaks, tourist rentals or other recurring problems.
This does not always mean the property should not be purchased, but it is information the buyer should have before committing.
6. Pending legal proceedings
The community may be involved in legal proceedings against a developer, contractor, neighbour, debtor or public authority. This may have financial or practical consequences for the owners.
Should the buyer always ask for the latest minutes?
In our view, yes, especially when buying an apartment, townhouse, property in an urbanisation, property with communal facilities, or any property subject to a community of owners.
The latest minutes are not the only document to review, but they are an important part of legal due diligence.
Ideally, a buyer should ask for:
- the latest minutes of the owners’ meeting;
- the community statutes, if any;
- the internal rules, if any;
- the certificate confirming the seller is up to date with community fees;
- information about approved or foreseeable special contributions;
- the latest community budget;
- confirmation of the ordinary community fees.
What if there are no recent minutes?
If there are no recent minutes, this should also be noted. It may simply mean that the community is small or inactive, but it may also indicate poor administration.
In that case, it is advisable to ask further questions:
- When was the last owners’ meeting held?
- Who is the president of the community?
- Is there a professional administrator?
- Are there pending repairs or debts?
- Are there any agreed but unpaid expenses?
- Are any special contributions expected?
Why this matters for foreign buyers
Foreign buyers often rely heavily on the estate agent, the seller or a general impression of the property. However, in Spain, the community of owners can have a direct impact on the buyer’s future costs, rights and use of the property.
A careful review of the latest minutes can help identify risks before signing the purchase contract or completing before notary.
It may also allow the buyer to renegotiate, request further documentation or make an informed decision before committing.
Conclusion
When buying property in Spain, legal due diligence should not stop at the title deed and the land registry search.
The latest minutes of the owners’ meeting can reveal essential information about the building, future expenses, community decisions, disputes and potential risks.
At Bennet & Rey, we assist international buyers with the legal review of property purchases in Spain, helping them understand not only what they are buying, but also the obligations and risks that may come with it.
If you are buying property in Spain and would like legal assistance before signing, we would be pleased to help.
Send us an email: [email protected]
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