Who pays the community fees in a sale?
One of the most common questions when selling or buying a property is related to the expenses associated with it, such as community fees in a sale. As it is a confusing and little-discussed topic, many wonder who should be responsible for them. If this is your situation, you may be unsure about who is responsible for paying the outstanding fees at the time of the sale.
In this article, as Notaries in property sales in Barcelona, we will explain who is responsible for paying the community fees in a property sale, so that you can face this transaction with the peace of mind of having all the information you need.
What do the community fees include in a sale?
Community fees in a sale include, above all, concepts related to the maintenance and operation of the common areas. These can be:
- Ordinary fees for general maintenance: cleaning, gardening, minor repairs in common areas, basic services such as electricity, water, heating of corridors, lifts or garages. They may also include administration fees arising from the management of the community.
- Extraordinary fees: these are payments arising from repairs, renovations or installations: of lifts, structural reforms to improve accessibility, etc…
- Reserve Funds: in this case, these would be contributions that guarantee the solvency of the community
- Outstanding Debts
How can I find out the outstanding community fees in a property sale?
There are different ways to find out the outstanding community fees to be paid in a property sale.
Debt certificate
The usual way to prove the existence or absence of debts of a property with the homeowners' association is to request a debt certificate from the administrator or president of the community. This document details whether the property in the sale is up to date with payments or if there are possible debts with the community. It also indicates the fees (extraordinary or ordinary) that have been approved at the homeowners' meeting.
This certificate is mandatory in Spain and must be delivered to the Notary during the signing of the property sale, unless the buyer is exempted from providing it.
It is common for the estate agency managing the sale to assist in gathering this document.
Community Meeting Minutes
You can also request a copy of the latest minutes of the community meetings. These reflect the fees mentioned earlier, the future works that may be carried out on the property, or the anticipated expenses of the property that would be the buyer's responsibility to pay in the future.
Consult the Community Administrator
The administrator will always be able to confirm general aspects about the situation of the property before carrying out a sale of flats.
So, who pays the expenses related to the community in a sale?
In Spain, community fees in a sale are regulated by the Horizontal Property Law (LPH).
It establishes that:
- The seller is responsible for the ordinary community fees incurred up to the day of the transfer of ownership, unless otherwise agreed.
- Article 17.11 of the LPH states that extraordinary expenses approved by the homeowners' association before the signing of the public deed are the responsibility of the seller. An example would be if the Board had approved the installation of a lift before the sale. In this case, the payment would fall on the seller of the property.
- If the community approves an extraordinary expense after the signing of the deed, the responsibility falls on the buyer, as they are already the new owner.
- The buyer may be liable for debts with the community from the year in which the sale takes place and the three previous years, since the property is encumbered with these obligations.
- In Catalonia, a buyer is liable for debts with the community during the year in which the purchase is made and for four more years.
Is it possible to sell a flat with Community debts?
When purchasing a property with debts, it is common for these to be extraordinary fees arising from new installations or renovations, as the ordinary fees are usually paid periodically and tend to be lower amounts. However, there may be debts with the community for any reason.
To address the purchase of a property with debts to the community, it is possible to negotiate with the buyer and deduct the amount from the purchase price, since, as we have seen, the buyer assumes the debts as the property is what encumbers those obligations.
Therefore, a buyer of a property with debts to the community can protect themselves by withholding the amount of the debts. This is common practice and means that the buyer deducts from the price the debts that the seller has with the community in order to pay them directly themselves. With this method, it is possible to buy a flat with debts to the community without legal risk.
Community Expenses before a Notary for Purchase and Sale
The deed of sale will mention the existence of debts with the community and will include, if there is one, the community certificate.
Step-by-step Purchase and Sale Expenses
It will be the Property Notary who requires the community debt certificate to be presented before formalising the sale.
The most common practice is to agree that the seller assumes the debts up to the date of the sale of the flat and delivers the property free of charges. However, both buyer and seller can agree on who will be responsible for any outstanding or future community expenses and negotiate any levies or extraordinary fees.
If you are the buyer, confirm with your Notary that all outstanding expenses are reflected and resolved. Furthermore, in the sale deed, it will be specified who has been responsible for paying the outstanding community expenses or the agreements reached will be put in writing to avoid legal problems.
Learn more about this deed:
Other related questions
As you have seen, the payment of the community fee is something that can be agreed upon, but above all, make sure that the distribution of the expenses for the current month is specified in the contract. Keep in mind that the expenses can be adjusted depending on the number of days each owner has the property in their possession.
In this case, the obligation to pay community expenses such as repairs, new works and improvements corresponds to the bare owner, according to article 9 of the Horizontal Property Law. And the person in usufruct of the dwelling must pay the expenses related to its enjoyment such as the community electricity, water or cleaning.
JLA Notaries, we solve your doubts about sales in Barcelona
We hope this article about who pays the community fees in a sale has been helpful to you. Don’t forget to read other related topics such as the following:
Do not hesitate to contact us if you are going to sell your flat or house in Barcelona to manage your procedure and sign the property sale contract. Our offices of Notaries in Barcelona are located at Avenida Diagonal 433, 2º2ª and you can contact us via Whatsapp at the number +34 607 50 01 71, email (bcn@jlanotarios.com) or through our contact form. We will resolve all your doubts.
