During the transfer of property ownership in Spain, disputes often arise over who should make the next payment for building maintenance. In most cases, the parties reach an individual agreement; however, there is an established practice commonly followed in the market.
Obligations for current maintenance payments
As a rule, the seller must fully settle all charges related to building upkeep up to the moment when ownership is transferred. Even if payments are collected in advance, such as for an upcoming quarter, the previous owner is responsible for paying the full amount. Later, the parties may agree on compensation: the buyer reimburses the seller for any months during which they already own the property but the payment was made by the previous owner.
Extraordinary expenses and additional fees
If, before signing the sales contract, the residents of the building agree to carry out major repairs or other significant works, the expenses are the seller’s responsibility. If, however, the decision on new expenditures is made after the deal is completed, responsibility shifts to the new owner.
Responsibility for utility payment debts
The buyer is responsible for debts on community fees for the current year and the three preceding years. In Catalonia, this period is extended to four years. When it comes to debts for major repairs or improvements, the payment must be made by whoever owns the apartment at the time the payment is due. Thus, the new owner is only liable for amounts billed after the transaction is completed.
Selling an apartment with unpaid utility fees
A property can be sold even if there are outstanding debts to the homeowners’ association. In such cases, parties often agree to reduce the property’s price by the amount of the debt or withhold the necessary sum for later settlement with the management company.
What costs are considered in the transaction
Mandatory payments include regular contributions for cleaning, maintenance of green areas, payment for lighting and water in common areas, and maintenance of elevators, garages, and central heating. Additional expenses may include major repairs, installation of new elevators, or strengthening building structures. Contributions to the reserve fund are also required to ensure the financial stability of the building. Don’t forget about any possible debts left by the previous owner.
Checking for outstanding debts before purchase
Before finalizing the deal, it is recommended to ensure there are no outstanding utility debts. You can request an official document from the property manager or the building’s president. Such a certificate is typically required by the notary, unless the buyer specifically waives it. It is also helpful to review the minutes of residents’ meetings to learn about upcoming renovations and approved fees. Another option is to contact the property manager directly.
