Or is the Community? - Mediterráneo Comunidades

PRESIDENT’S
HANDBOOK
2
CONTENT
SO I’M PRESIDENT…NOW WHAT?
4
PREPARING TO BE PRESIDENT
8
What is expected of me?
10
Knowing your Community
12
SECTION 1
The Vice-President
The Secretary/Administrator
The Annual General Meeting
The Owners
13
13
14
15
3 Documents that you should keep at hand
16
Lets get on well together
18
THE PRESIDENT’S “ABC”
22
Communal Areas
24
The Regular Budget
28
Extra Service Charges
32
Debtors
34
The General Meetings
38
OTHER FREQUENT QUESTIONS
46
(Advice for harmonious community living)
SECTION 2
SECTION 3
SO I’M PRE
NOW WHAT
4
ESIDENT…
T?
5
INTRO
Residents’ Associations, or Communities of Owners as they are known in Spain,
are like people. Each one is unique to itself. The variety of challenges and
situations that can arise in each could, without doubt, be the source for a whole
encyclopedia on the subject.
This kind of environment is so dependent
on a wide variety of individual
circumstances that over the years it has
even been the inspiration for comics (13
Rue del Percebe), films (The Community,
Thou shalt not kill…..your neighbour) and
even TV series (Aquí no hay quien viva).
And, invariably, they all portray the most
thankless side of the President’s work.
6
The good news is that it doesn’t have to
In any case, whether you are new to the
be like that. Nowadays it is most likely
job or have been in the position for years,
that the President of any community will
we have put together this handbook for
be well advised by a professional estate
you. Here you will find the answer to
manager, or Administrator. This way, his
most of the basic questions concerning
effectiveness and confidence in himself
your function as President of your
will be rapidly increased. For this reason
Community.
who has the backup of a team capable
And remember, if you have any queries
of sorting out problems and transmitting
that go beyond the scope of the handbook...
confidence to the Community.
consult a good Administrator.
www.mediterraneocomunidades.com
7
SO I’M PRESIDENT… NOW WHAT?
it is important to select an Administrator
PREPARING
TO BE PRES
8
SIDENT
9
SECTION 1
WHAT IS
EXPECTED
OF ME?
Broadly speaking,
3 basic functions:
10
1
That you be the legal
Described in this way, it seems to be too
representative of your Community,
many obligations for an office that is held
both in and out of court, in all matters
without receiving any remuneration other
that affect it, like, for example, making
than the appreciation of the residents
specific claims against an owner for non-
or the satisfaction of a job well done. But
payment of service charges.
the fact is, that when it comes down to
it, you will never be alone: the General
2
Meeting of the Owners (the AGM) will make
the decisions that will guide the Community.
That you call and chair the
Annual General Meetings and
In any case, if you want to be on the safe
the Extraordinary General Meetings, in
side as regards sorting out situations of
which the owners can make decisions
any kind, whether legal or technical, we
on the issues or situations affecting your
recommend you place yourself in the
Community.
hands of a Professional Administrator with
a capable backup team. This way, terms
situations or “estate management” will no
That you see that the resolutions
adopted in each General
Meeting are implemented, observing the
conditions and time limits established in the
Meeting. For example, if it is decided in an
Extraordinary General Meeting to change the
maintenance company, the person or team
handling the administration of the estate will
obtain a number of proposals from which
you will make your choice, assisted by the
Committee, taking into consideration the
longer alarm you. A good administration
team will always work discreetly and
efficiently, ensuring that the decisions made
in the General Meetings are put into effect,
and ensuring that
the amenities and services are kept in good
condition.
You are the President, and as President you
need to have a good team of professionals
behind you.
parameters desired (price, quality, etc.).
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PREPARING TO BE PRESIDENT
3
like “legal representative”, “emergency
SECTION 1
KNOWING YOUR
COMMUNITY
If your Community were a movie, these would be the main characters. Maintaining
correct relationships with each of them throughout the year will provide you with
greater support in the face of any eventuality. Here we list their main features and
responsibilities so that you will know how to make the most of each one.
12
Vice-President
Secretary-Administrator
His appointment is regulated under the
Although the President could occupy
same system as for the President.
the position of Administrator-Secretary,
He will stand in for you whenever you are
it is more advisable, wherever possible,
absent or if for any justified reason you are
to turn to the professionals for help,
unable to perform the functions of your office.
given the number of tasks that have to
be performed. In general terms this
includes: documenting all the decisions
made in each General Meeting, writing
up the Minutes, preparing the budgets,
ensuring that the resolutions adopted
obtaining price offers, handling formalities
for the Community with official
institutions and authorities, being up-todate with legislation…
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PREPARING TO BE PRESIDENT
are put into effect, keeping the accounts,
SECTION 1
Owners General Meeting
(AGM)
Its function is to discuss all the items
of general interest that affect the
Community, deciding on the best
measures to take, always seeking the
common good. The General Meeting
also has the power to appoint the
persons who are to hold the offices of
President, Vice-President, Secretary and
Administrator.
In Section 2 of this handbook
you will find a heading dedicated
exclusively to the Owners General Meeting.
14
Owners
Each one has certain basic rights and
obligations which, as President, you must
take into account when handling any
problem or dispute.
An owner
is entitled to:
An owner
is obliged to:
· Participate in the General Meetings and
· Respect the general amenities of the
propose items for debate, expressing his
Community, use them correctly and avoid
opinion and casting his vote, providing
causing damage to them.
that he is up-to-date with the payment of
· Keep his property/commercial premises
his service charges.
in good condition, taking responsibility
· Carry out improvement work inside his
for any possible damage caused to
property/commercial premises providing
other owners due to the carelessness or
that the work does not diminish the
neglect of other persons for whom he is
safety of the building, affect its structure
accountable (family, tenants, etc.)
or the rights of other owners.
· Allow any repairs to be carried out in his
· Request the General Meeting approve
apartment/commercial premises that are
the physical division or joining of
required for the general maintenance of
apartments/commercial premises.
the building.
· Make his contribution to the general
expenses for the conservation of the
building and its services.
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PREPARING TO BE PRESIDENT
Generally speaking, these are:
SECTION 1
3 DOCUMENTS
THAT YOU SHOULD
KEEP AT HAND
As we mentioned before, the variety of situations and unforeseen events that
could arise during your term as President of the Community is practically endless.
Fortunately, there are a number of documents and literature that can help you
respond to any contingency. Here are some that we think are really essential:
16
This regulates how a building is divided
up and the relation between the
owners of the private properties and
the communal elements of which it is
composed. It facilitates the organisation
of the co-owners and the maintenance of
the communal elements. Here you will
find all the issues that we have basically
covered in this handbook, set out in
detail. Keep it always on hand!
2
Owners contact
details
Perhaps less obvious but no less
important. Gather together as soon as
possible the contact details of all the
residents (telephones, email, what times
they are at home, etc.). This way you will
achieve fluid communication with them,
making certain formalities easier. The
previous President probably already has
this information. Ask him for it, and if
not, maybe this is a good time to get to
know your neighbours and to introduce
yourself, door to door...
3
Contact details for
utility services
When faced with an unforeseen
event, the best thing is to be able to
react instantly. It is important to keep
all the basic details on hand, such as
telephone numbers of the different
services companies (lifts, administration,
Community emergencies, etc.) This way,
you will be able to act calmly even in the
most unexpected situations.
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PREPARING TO BE PRESIDENT
1
The Joint Common
Property Act
SECTION 1
LETS GET
ON WELL
TOGETHER
-ADVICE FOR HARMONIOUS COMMUNITYBasically, a Community of Owners is nothing more than a group of people, with
all the good and the bad aspects inherent to them. As President, you will surely
come up against a whole multitude of misunderstandings and divided opinions.
There is nothing you can do to avoid this. But, luckily, you can work to create an
atmosphere that will mitigate these drawbacks.
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How to create
a good atmosphere
Keep these 4 principles always in mind,
and you’ll see how your Community
· Information: Use both the traditional
· Proximity: Take your appointment as
means (circulars) and new technologies
President as an opportunity to get closer
(email, social networks) to keep all
to your neighbours. To get to know their
the owners up-to-date on any items
strong points and identify what they can
of interest. Not only will you gain
contribute to the group. Appreciate their
their trust, but you will also avoid any
ideas or comments, because they could
suspicions and last-minute surprises.
really surprise you.
· Impartiality: Avoid taking sides with
· Action: Another aspect in which you
any of the parties involved in a dispute.
will earn the respect of your neighbours
Take this handbook as a reference and
is this. If you manage to sort out their
use the Joint Common Property Act to
problems rapidly and maintain your
define your posture. Try to create an
composure, you will demonstrate that all
area of consensus in accordance with the
the Community affairs are in good hands.
provisions of the Law, and bring the sides
together in the common interest.
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PREPARING TO BE PRESIDENT
operates far more smoothly.
SECTION 1
How to approach the
diversity of your Community
· Do a little research into their culture and
country of origin. You don’t need an in-depth
In your Community you will not only find
study, it would be sufficient to do some
many different types of residents and
groundwork so that you can, for example,
personalities. You will also possibly be
strike up a conversation with them by way
dealing with residents of cultures and
of introduction assuming, of course, you are
languages different from your own. They
able to understand each other in either of your
obviously have the same rights and
languages.
obligations as the rest of the owners, but
at times, communicating with them can be
somewhat more complicated.
Here are some basic points of advice for
you to do things the best way possible:
· Try to keep in constant contact with
them. In spite of the cultural and language
differences, it will make them feel more
secure and encourage them to take a more
active participation in everything related to the
Community.
· If possible, provide them with a copy of the
Joint Common Property Act in their language,
or suggest they try to obtain one. With this,
they will be able to clarify many of their doubts
and learn the practical differences between
Spanish legislation and that of their own country
with regard to residents associations.
· Make use of a special language service if
communication becomes impossible and if
the Annual General Meeting agrees to this.
Bear in mind that some administration firms
offer this kind of service.
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How to generate trust…
The good atmosphere in the Community
begins with you. If your neighbours
see you are sure of your actions, they
will automatically have far more peace
of mind and will trust in your good
management of the Community, offering
fewer objections.
To transmit this image of leadership,
there are two very simple courses
· Count on your neighbours.
· Present yourself as a team, not as one
Make it frequently evident that you value
single person. Try to engage the help
their opinions, and that you take them into
of a Professional Administrator who will
account when looking to find a solution to
give you guarantees. Make sure that his
the problems they put forward. You are the
firm has access to advisors and other
President, but the decisions are taken
professionals in different fields so that
amongst everyone. It is your job to have
you can perform your task as efficiently
them implemented in the best
and discreetly as possible, minimising any
manner possible.
inconveniences. The best way to solve a
problem is by knowing how to prevent it!
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PREPARING TO BE PRESIDENT
of action.
THE PRESI
“ABC”
22
IDENT’S
On the next few pages you will find useful information about matters in which
you will forseeably have to act as President of the Community. We have tried to
cover the situations and the basic doubts that you might have for each one, so
that you always have a quick reference guide at hand.
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SECTION 2
COMMUNAL
AREAS
The communal elements or areas are those that are open to the use or utilisation
by all of the owners. These include a wide variety of spaces, such as, amongst
others:
· Facades, renderings, outsides of terraces, balconies and windows…
· Entrance halls, staircases, lobbies, landings, patios…
· Lifts, meter rooms, water tanks.
· Pipes and installations for hot water, air conditioning, heating, etc.
· Security facilities, electronic door-opening systems, collective TV aerials, etc.
· Swimming pools, sports courts and other leisure amenities.
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About the
Internal Regulations
The important thing in a Community is
Frequent Questions
for there to be a good level of respect
between neighbours. In order to achieve
good neighbourly relations, the residents
as a whole can draw up a set of Internal
Regulations that will regulate, always
within the Law, the use and enjoyment of
the various Communal Areas. These rules
are obligatory for all of the owners and
can be extended or altered in the General
Meeting, provided that the majority of
the owners agree to it.
Some examples of Internal Regulations:
Times and guidelines for hygiene in
the swimming pool, activities that are
permitted/not permitted in a certain
communal area...
a) For practical purposes, can all the
Communal Areas be freely used by all
owners?
No. There are what are known as
“communal areas for private use”, which,
briefly, are any areas which, due to their
location, can only be utilised by one (or a
restricted number) of private owners. For
example, certain patios, roof terraces of top
floor apartments, etc. In general, it is the
developer of the complex who originally
would have assigned the use of those
elements to specific owners. If this is not
the case, the owners will have to decide
who is entitled to the use of the area.
Very important: although the use of those
areas is restricted to certain owners, they
have to keep them in good condition and
condition of both these areas and of the building in
general, ensuring good structural and living conditions,
respect the rights of the other residents at
all times.
accessibility and safety.
25
THE PRESIDENT’S “ABC”
It is the Community’s responsibility to ensure the good
SECTION 2
b) Can an owner ask for a communal
c) We have decided, in a General Meeting
area to be altered?
to alter a communal area, but one owner
If those alterations are not strictly
refuses to pay his part of the Extra Service
necessary for the conservation,
Charge. Is he entitled to do this?
habitability or accessibility of the building,
If the improvement is necessary for the
owners may not request them, but they
conservation, habitability or accessibility
can propose them. Whether they are put
of the building, the owner cannot refuse.
into effect or not will depend on whether
If it is not essential, and the owner had
the rest of the owners are in agreement.
voted against the improvement work, he
may decline to pay if the amount of the
Extra Service Charge exceeds the total of
Examples of alterations: altering the decoration of the
entrance hall, having a decalcifying system installed, or
security cameras, air conditioning…
three months of ordinary service charges.
In these cases, it is difficult to determine
what is necessary and what is nonessential.
However, bear in mind that in certain
types of services - telecommunications,
gas, the infrastructure for new collective
energy supplies, etc. - a vote against it
will exempt the owner from payment and
from receiving that service.
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d) One of the owners has asked for
f) One of the owners often uses one of
improvement works to be carried out
the communal areas for storing objects
for making a communal area more
or parking vehicles (boxes, bicycles,
accessible. Is the Community obliged to
etc.). Can he do this?
have it done?
He can, providing that he has asked
In the case where an owner or any of the
permission from the Annual General
persons who live/work in his property are
Meeting for the use of this space, and
disabled or are over the age of 70, the
the Meeting unanimously agreed to allow
Community has to have the work done,
him to use the space.
providing that the total cost of the work
– after deducting any subsidies or public
aid - does not exceed twelve months of
ordinary service charges.
e) We have a swimming pool in the
Community. Are we obliged to engage
a lifeguard?
The legislation on swimming pools
usually varies from one region to
another, so the best thing to do would
be to consult the regulations established
by your regional authority as soon as
possible on issues related to lifeguards,
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THE PRESIDENT’S “ABC”
safety and hygiene in swimming pools.
SECTION 2
THE
REGULAR
BUDGET
The Regular Budget of the Community is the amount of money that is considered
to be necessary for maintaining its services, on an annual basis. Such services
include, amongst others, cleaning, lift and equipment maintenance, communal
electricity and water, community insurance, etc. This Regular Budget has to be
adopted by the majority of the owners present at the General Meeting in which
it is presented.
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In order to cover the expenses mentioned,
the Community has to issue service
charges to be paid by each owner,
depending on the percentage established
Example: Suppose that in a certain community, each
in his title deed. Any modification to
owner pays a different amount of service charge and
the system of expenses requires the
unanimous agreement of all owners.
they want to change the system so that everyone
pays the same. It can be done, but the unanimous
agreement of all owners is absolutely necessary.
The Reserve Fund
This obligatory fund exists so that your
The Reserve Fund has to be approved in
Community will always have a “financial
the same General Meeting in which the
cushion” with which it can cover the cost
Annual General Budget is approved. In
of conservation and repair work for the
order to determine what percentage of
building, whether regular or extraordinary
that fund corresponds to each owner, the
items of work. It has to be provided with a
same system is used as that employed for
sum of money that in no event can be less
calculating the Community service charges.
This fund can only be used for work related
A word of advice: Try to establish a
to the upkeep and repair, never for any
Reserve Fund somewhat higher than the
other kind of expenses. But it can be used,
minimum established by law. You are not
for example, for taking out an insurance
likely to be able to undertake any work
policy for covering damages or the costs
of any importance with only 5% of the
for maintaining the building.
Annual Budget.
29
THE PRESIDENT’S “ABC”
than 5% of the Regular Annual Budget.
SECTION 2
Frequent Questions
c) Is it possible to start a financial year
without having approved an annual
budget?
a) Who prepares the Regular Budget?
It is possible, but not advisable. In this
Normally it is the Administrator. This task
case, the previous year’s budget would
can also be carried out by the President
be maintained, which could result in the
or, on most occasions, by a professional
community accounts not adding up at
engaged by the Community. He will have
the end of the year, as the expenses and
the job of proposing a budget prepared in
the requirements of the building can vary
advance, taking the previous year’s budget
greatly from one year to the next.
as a reference and anticipating the needs
of the complex for the coming year.
For this reason, the owners should make
the effort to agree on a budget, making
b) If an owner leaves the Community,
any
selling his apartment or commercial
adjustments that are necessary to the
premises, can he claim his proportional
budget for its approval. If a budget is not
part of the Reserve Fund?
approved, it could be detrimental in the
No. Once it has been set up, the
long run to everyone.
Community is the exclusive owner of the
Reserve Fund.
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d) When must each owner pay his
e) Do the service charges necessarily
monthly service charge?
have to be collected monthly?
As a general rule, the General Meeting
No. Although the Joint Common Property
will set a time limit in which the owners
Act mentions “regular monthly service
have to punctually pay their service
charges”, each community can set the
charges. For the regular service charges,
basis that it considers most appropriate
the time limit set will continue to be in
(every two months, quarterly, half yearly,
force until it is changed in the future for
yearly…).
any other.
Recommendation: if the service charges
are sent out at least quarterly, you will
avoid bank charges for the processing of
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THE PRESIDENT’S “ABC”
payment orders.
SECTION 2
EXTRA SERVICE
CHARGES
Every now and then, it is normal for the Community to have to incur an unforeseen
expense (repairs, refurbishment of the amenities, etc). On some occasions, this
expense cannot be paid out of the regular funds available to the Community. In this
kind of situation, the normal course is to issue an Extra Service Charge: an additional
fee that each owner has to pay, on top of the regular service charges of the Community.
As President, you must have a pretty clear
idea of how to approach the issue of an Extra
Frequent Questions
Service Charge, as this is one of the items
where most protest and disagreement can
arise amongst owners.
Below you will find some tips that will
help you to handle the situation.
a) Who can ask for extraordinary action
to be taken?
In principle, any owner could observe a
problem or an area for improvement in the
building that might require an Extra Service
Charge. That owner should suggest the matter
to the President so it can be included in the
Agenda for the next General Meeting, where
the extraordinary item entailing an Extra Service
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Charge must be explained, debated and, if
resolutions taken on communal installations
the case, approved. It usually suffices to
such as for telecommunications, renewable
have a vote in favour from the majority of
energies or new energy utilities, an owner may
the owners present, providing that the work
refuse, but he will then not be able to use those
in question is necessary for the conservation
services.
Charges can originate from requirements
set by the public authorities who oblige the
community to carry out work for conservation,
refurbishment, accessibility, safety...
b) Can one of the owners refuse to pay an
Extra Service Charge?
It depends on the type of work or alteration
for which the Extra Service Charge is
needed. If it is absolutely necessary for the
correct conservation of the building, no
owner can refuse, and the Community can
even take legal action to claim the amount
that it is owed. If, however, the Extra Service
Charge is to be used for work or services that
are not essential for the conservation of the
building, there are cases in which, if the Extra
Example: The owners decide in a General Meeting to
replace the entrance gate, which is in perfectly good
condition, for a new one of stainless steel. One of the
owners votes against it and refuses to pay the Extra
Service Charge, as the cost exceeds three months of ordinary
service charges. He is entitled to do this, even though he
cannot be deprived of the use of the improvement.
c) Extra Service Charges are paid according
to participation percentages or equally
between all of the owners?
In the case of replacing or repairing
communal elements, the owners have to pay
according to their percentage of participation
that appears in their title deed. However, in
some Communities the owners decide by
unanimous agreement to pay the Extra Service
Charge divided equally between everyone.
Service Charge is in excess of twelve months
d) A new owner refuses to pay an Extra
Service Charge approved before he
of ordinary service charges, an owner can
purchased the property. Can he do this?
refuse to pay it, providing that his vote had
No, the Extra Service Charges are payable by
been against it. The Joint Common Property
the person who is the owner at the time of
Act is somewhat vague on this point, so you
issue. Furthermore, the new owner is liable
might have to consult with a professional, if
for the debts of the property during the year of
you encounter this problem. In the case of
purchase and the three previous calendar years.
33
THE PRESIDENT’S “ABC”
of the building. However, Extra Service
SECTION 2
DEBTORS
Debtors are an inconvenience that have affected Communities practically since
their origin. For this reason it highly likely that, sooner or later, you will have to
tackle this classic problem. Even more so bearing in mind that owners are not the
only persons who may fail to pay. The various apartments of your building can also
belong to banks, or to the developers themselves, who are not always willing to
keep their service charges up to date with payment.
Debtors are, without doubt, one of the
Because of this, it is essential for you
greatest causes of conflict amongst
to have some basic notions on how
owners, as they have a direct effect on
to proceed in this kind of situation, in
the Community budgets and therefore
order to be able to tackle it as soon as
on the correct upkeep of the complex,
possible.
bringing about evident effects in the
quality of life of the owners who do
punctually pay their service charges.
34
Frequent Questions
In these cases, an “order for payment
procedure” is usually filed, which is much
a) We have a debtor in the Community. Does
he continue to enjoy the same rights as the
owners who pay their service charges?
A debtor owner retains all his rights, except
the right to vote in the General Meetings, or
to challenge the resolutions adopted, until
he has brought himself up-do-date in the
payment of his service charges. You will
have to inform the owner of his outstanding
payment prior to the AGM, and that he will
be deprived of his vote if he comes to the
next General Meeting without having settled
his debt.
b) What action is to be taken with a debtor?
Every case is obviously different, but as a
general rule, you should try and settle the
quicker than a conventional trial procedure,
and for which it is not necessary for barristers
or court solicitors to be present. The
President (or failing this, the Administrator
who has been authorised by the General
Meeting) will be in charge of handling
the court formalities, receiving official
notifications, filing applications, etc. The
debtor will have to assume the legal costs for
the procedure.
In any case, as we mentioned, the
circumstances of each debtor should be
considered before taking legal action. It is
always advisable to give payment facilities to
those persons who show a real intention to
find a solution to the situation.
matter at Community level, sending an official
possible to reach an agreement through this
channel, the Community can decide on taking
court action. To do this, the only requirement
is that the General Meeting approves the
Example: One of the owners stopped paying his regular
service charges a couple of months ago, due to becoming
unemployed. He is an owner with no former history of late
payment, and seems to be willing to rectify the situation
if, as a special measure, a different payment schedule can
be negotiated. In this case, it could be appropriate for the
figure of the outstanding debt of the owner,
General Meeting to agree to negotiate the payments plan, if
and a certificate stating the resolution where
it is considered to be reasonable.
the debt is listed and approved.
35
THE PRESIDENT’S “ABC”
demand for the payment of his debt. If it is not
SECTION 2
c) One of the owners has died and left
d) As a result of several owners failing
an outstanding debt. How should I
to pay their service charges, the
proceed?
Community in unable to pay what it
The usual thing is to try and locate the
owes to an external supplier, who is
heirs and relatives of the owner, reaching
threatening to take us to court for non-
an agreement for them to take over the
payment. What is the liability of the
debt. If they refuse, the Community can
owners who are up to date with their
engage a lawyer to handle the matter,
service charges at a legal level?
in the last resort taking court action
The matter is somewhat complex.
that could result in the property being
On the one hand, the supplier who is
auctioned if the heirs do not agree to
taking you to court for non-payment
settle the debt.
can demand that the Community makes
payment out of community funds. But
The case could also arise that no-
he can also decide to claim jointly with
one can be located, in which case the
the Community against each individual
Community would file a general claim in
owner, who can refuse to pay providing
Court, against unknown heirs. Each case,
that they can demonstrate that they are
obviously, will be different, but it would
up-to-date with the payment of all their
be wise to have the services of a lawyer
service charges issued to date by the
or a professional.
Community.
36
e) One of the properties is rented out to
f) Is it legal to publish a list of debtors
a couple, and they have not paid their
on the Community notice board?
service charges for this month. Against
It is not advisable to do this in case you
whom should the Community claim them?
might be infringing the Law on Personal
It is always the owner’s obligation to
Data Protection. Try to use other channels
contribute to the general expenses of the
for informing debtors (by post, email, etc.)
Community, regardless of any arrangement
he has with the tenant to the effect that
the latter pays the service charges. For this
reason, the Community should always contact
37
THE PRESIDENT’S “ABC”
the owner for claiming any non-payment.
SECTION 2
THE GENERAL
MEETINGS
As President you have to have one thing very clear, you are the person who
transmits, represents and implements the decisions of the General Meeting, and
only for reasons that you consider to be an emergency, can you tell the Administrator
to handle the repairs or measures necessary, without any prior resolution having
been taken, and which will have to be reported in the next General Meeting.
The President’s function in
the General Meetings
· You should chair the meeting with
· Right from the beginning you should avoid
courtesy, showing respect for all opinions
letting any possible confrontations pass to a
and moderating the exchanges so that
personal level.
everyone feels they have been heard.
· You should act as a mediator, finding a point
· You should appear to be seen as the
of consensus between opposing postures
President of everyone, without taking
and defusing the tension, if necessary.
sides in confrontations. The only side you
· You have to submit the issues debated
should be on is the side of the Law.
to a vote.
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Responsibilities of the
Annual General Meeting
(AGM)
· Appoint the persons who are to hold
The Minutes
the offices of President, Administrator or
All the resolutions taken in each Owners
Secretary.
General Meeting (AGM) must be
· Listen to complaints that owners might
recorded in the Minutes, which have
have about the management undertaken
to be signed by the President and the
by the President, Administrator or
Secretary. Copies of this document must
Secretary.
be sent as quickly as possible to all the
· Approve the Regular Annual Budget and
owners, so that they are informed of all
establish the Reserve Fund.
the decisions made.
carrying out repair works on the building,
The Minutes of each General Meeting
whether regular or extraordinary.
must be transcribed punctually into
· Draw up or modify, as the case may be,
the Minutes Book and signed by the
the Community Bylaws and the Internal
Secretary and by the President. This
Regulations.
book must be correctly processed in the
· Be informed about, discuss and decide
Land Registry.
on other matters of general interest put
forward in the points of the Agenda.
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THE PRESIDENT’S “ABC”
· Approve estimates and schedules for
SECTION 2
Frequent Questions
b) How much advance notice is required
for holding a General Meeting?
In the case of an AGM, the notice must be
a) When does a General Meeting have
to be held?
sent out at least six days in advance. For
an EGM, with as much advance notice as
The Annual General Meeting has to be held
possible, so that everyone interested can
at least once a year in order to approve
be informed.
the accounts and adopt the budgets for
the coming year. Additionally, it can be
c) What time should I set for holding a
called whenever the President thinks it is
General Meeting?
appropriate and justified for dealing with
General Meetings can be held at different
any matters of interest that have arisen.
times: in their first and second call. In order
The President is not the only person who
to be held in the first call, there has to be
can call a General Meeting. If one quarter
a majority of owners present who also
of the owners of the Community (or a
represent the majority of the participation
number representing a minimum of 25%
percentages. If this quorum is not present,
of the participation percentages) think a
the meeting has to start at the time set for
meeting should be held, they can call one.
the second call, this time with whatever
The official notice of the General Meeting
number of owners who are present.
must be sent out by the President or the
owners calling the meeting, and must
d) Is it obligatory to attend the General
clearly indicate the points to be dealt with
Meetings in person?
in the meeting, the date, the times of the
You can attend a General Meeting in
first and second call, if any. Together with
person, or in specific cases you can
the official notice, a list of debtors must be
designate someone else to represent
sent, with the warning that they will not be
you by way of a signed proxy form. For
entitled to vote if they are not up-to-date
example, in the case of rented properties,
with payment before the Meeting.
even though the vote corresponds to the
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owner, he can assign his representation
f) If an owner has several properties
to the person renting his property. Or
or commercial premises, does he hold
if the property is in beneficial use, the
several votes?
owner will automatically be considered
No, a multiple owner only has one vote,
to be represented by the person with
but the participation percentages of all
the life interest, even though the
his properties are added together when
representation must be specific as to the
voting. Normally, for a resolution to be
votes to be cast for extraordinary items
valid, it requires a double calculation
of building or improvement work, and
of majorities: the required majority of
for resolutions on communal services of
owners must also represent the required
general interest.
majority of participation percentage.
But your presence as President is
At the same time, any owner who
absolutely necessary, and you cannot
owns several properties or commercial
delegate this function.
premises
can, alone, call a General Meeting
e) Who can include items on the Agenda
to discuss an item of interest to the
for debate and adoption in a General
Community providing that, by adding all
Meeting?
the apartments and commercial premises
Any owner can propose an item he
together, he accounts for a minimum of
considers to be of interest to the
25% of the participation percentage.
Community by presenting it in writing
to the President, explaining the matter
clearly. The President will present it for
General Meeting.
41
THE PRESIDENT’S “ABC”
discussion on the Agenda for the next
SECTION 2
g) What quorum is necessary for the
General Meeting to adopt a resolution?
It depends on the kind of resolution in
question. Below you will see a table
describing, in broad terms, the most
usual possibilities. But bear in mind that
as it depends so much on the particular
cases, it is probable that you will find
circumstances that are not included in
the basic table. If you come across one of
those circumstances, consult a specialist:
UNANIMITY
For any resolutions that involve the
approval or the modification of the
rules contained in the title deeds of the
community, or the Community Bylaws,
like changes of the percentages of
participation in the communal expenses,
unless the Law specifically establishes any
other kind of resolution.
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MAJORITY *
In the first call, for resolutions that are
not included under the previous point, a
favourable vote from the majority of all
owners is required. In the second call, only
the majority of the owners present at that
Meeting who in turn represent half of the
sum of the participation percentages of
those present. A majority vote can also
serve for establishing lift services and
certain construction items for removing
architectural barriers.
ONE THIRD *
Valid for any resolutions that involve the
installation or adapting of communal
infrastructure providing access to
telecommunication services or collective
energy installations (internet, television,
natural gas, private or communal systems
for making use of renewable energies, etc).
In these cases, any owner not voting in
favour is not obliged to pay for that service.
If this case arises, he will not be able to
make use of that service unless he later
decides to join the service, paying his part.
*In these cases we are assuming that each
part of the owners referred to represents in
turn an equivalent part of the participation
percentages.
43
THE PRESIDENT’S “ABC”
THREE FIFTHS *
For all those agreements to establish or
eliminate common services (surveillance,
concierge, etc.), whether this requires
modifying the deeds and bylaws, lease
involving common elements without
specific use, setting or deletion of
equipment or systems to improve
energy or water efficiency. Also to
enclose terraces, which also requires
administrative authorization.
SECTION 2
h) How can we obtain the majority
i) Can a resolution adopted in a General
necessary in resolutions that require a
Meeting be annulled?
unanimous vote if only a few owners
A resolution can only be voided by a Judge,
have come to the General Meeting?
following a challenge filed by any owners
All owners have the obligation to provide
who had voted against the motion in the
the Community with an address in Spain
General Meeting (which must be recorded
where they will be sent the decisions
in the Minutes), any owners who were
taken in each General Meeting.
absent for any reason, or any who had
For issues that require a unanimous vote
been incorrectly deprived of their right to
or a qualified majority, the vote of the
vote. And, at the same time, bear in mind
absent owners will be taken to be in
that not all resolutions are challengeable.
favour of the resolution adopted if they
do not express any disagreement with
In order to file a challenge, any of
the Minutes within 30 calendar days.
the following circumstances must be
present:
· That they are contrary to the law or to
the Community Bylaws.
· That they are a serious detriment to
the interests of the Community itself, in
benefit of one or more owners.
· That they are a serious detriment to any
owner who is not legally obliged to accept
them, or that they have been adopted by
abuse of rights.
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· In order to challenge a resolution,
j) Do the Minutes have to reflect opinions
the owner must be up-to-date with payment
or other comments?
of all his service charges to the Community,
The Minutes have to record the
and take into account that the Law sets time
resolutions and some reference as
limits for filing such challenge: 3 months since
to how they were reached or a brief
the adoption of the resolution, unless it entails
summary of the debate. They should
any actions that are contrary to the law or
avoid reflecting superfluous comments
to the Community Bylaws, in which case the
and criticisms, insults and other hurtful
time limit will be one year. Bear in mind that
words which, although they formed part
the court costs will be payable by the party
of the meeting, should not form part of
upon whom they are imposed by the Judge.
the Minutes.
In principle, the party filing the challenge will
assume the costs, and once there is a final
ruling, the judge will establish who is to finally
pay them.
At the same time there are resolutions
that will be considered to be void, without
the need for any challenge, because either
they infringe the law, or are contrary to
accepted moral standards or public order, or
they entail fraud.
For example: it cannot be approved to pay invoices without
VAT, or that the Community employees should work without
being registered with the Social Security, as these resolutions
that are discriminatory or abusive and do not respect the
equality and rights of everyone. If a resolution is annulled, it
is normally the Community that has to pay the costs.
45
THE PRESIDENT’S “ABC”
would be infringing the Law. Nor can resolutions be adopted
OTHER FRE
QUESTION
46
EQUENT
NS
In this final Section you will find the answer to doubts and problems that are not
accommodated under any of the areas dealt with above, or that include aspects
combined from several different areas. We have selected them in accordance with
their habitual use, but remember that the number of situations and aspects that
can arise in a Community of Owners is practically infinite. For the more complex
cases, it is advisable to have professional advice.
47
SECTION 3
II have been elected
President of my Community.
Do I have to accept?
What action can I take
against noisy or annoying
residents?
In principle yes. If there are justified
The occupants of the properties may not
grounds as to why the person elected
carry out in them or in any part of the
should not accept the appointment (long
building any activities prohibited under
periods of absence, illness, etc.), he can
the Community Bylaws, or any that
legally avoid the responsibility.
cause damage to the complex or that
contravene the general provisions on
annoying, unhealthy, noxious, dangerous
or illicit activities.
Can CCTV cameras be fitted in
the Community?
The first thing to do is to talk to them
Providing that the installation is approved
of other residents, inviting them to
by a vote in favour from 3/5 of the
rectify their behaviour. Take into account
owners (assuming that amongst them,
that they might not be aware of the
they account for 3/5 of the participation
inconvenience they are causing. If they
percentages), the system can be fitted,
continue to behave the same way, you
only in communal areas and must not be
should contact them, and the apartment
focused toward the interior of any private
owner, in writing. The latter must be
property.
informed of any incidence of this kind
and make them aware of the complaints
because he could become an ally of the
In order to comply with regulations of
the protection of privacy, there must be
visible signs informing that the area has
“video surveillance”.
48
Community in sorting out the problem.
Are residents permitted to
have barbecues on their
patio or terrace?
In any case, before taking any definitive
action, it is wise to speak face to face
with the owner of the animal, to see if
Yes, unless there is any resolution
the inconveniences caused by his pet
prohibiting this.
can be lessened or eliminated easily and
amicably. You should also be informed
as to whether your local authorities have
How should I act in the case
of pets in the Community?
any regulations in place regarding pets.
In some cases, municipal regulations can
They are permitted, unless the Bylaws
also apply to Communities, such as the
or the Internal Regulations have a clause
precaution of not riding in a lift with the
adopted by a unanimous vote to prohibit
animal when it is occupied by another
keeping pets in the complex. The only
resident, etc.
exception is if the animal in question
causes inconvenience or engages in
activities that are unhealthy, noxious or
Example: Many residents are inconvenienced by the
dangerous, which will have to be proved.
smell left in the lifts by the dog of one of the owners.
prohibited from the Community.
The President of the Community speaks to him and they
reach the agreement that the dog will always go up and
down using the stairs.
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OTHER FREQUENT QUESTIONS
If this is the case, the pet could be
SECTION 3
Two residents are
complaining about water
leaking from one apartment
to the other. What is the
Community’s liability?
The residents are demanding
that the Developer should
repair the defects in their
properties. What can I do
about this?
In the beginning none, providing that the
These claims have to be made personally
leak does not affect or is not produced
by the owner affected, but it is advisable
by any communal area. Through their
that, as President, you maintain a
own insurance, the owners will have to
relationship with the Developer so you
establish the source of the problem and
can mediate and become involved when
come to an agreement.
these complaints are not isolated and
involve a number of residents.
A resident creates a storage
room in a garage space. Is this
permitted?
room implies a new division of the
I would like to obtain a copy
of the lift maintenance
contract. Am I entitled to ask
for it?
condominium property of the complex.
Normally the Community will have a copy
To do this, he has to first apply to the
of the lift maintenance contract, kept by
Community. If, as President, you receive
the Secretary, so you will be able to consult
this type of request, you have to include
it whenever you need, but if it has been
it in the Agenda for the next General
misplaced, you, as President, can ask the
Meeting as it has to be approved by a
maintenance company for a copy.
The creation of a new storage
unanimous vote. If this vote is obtained,
the title deed of the complex will have to
be modified to include the existence of
the new storage room.
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Owners are not in agreement
with the hours of use of the
paddle tennis court.
What can I do?
the residents who use the court, it is
I want to make the
Developer take
responsibility for the defects
in the communal areas.
Whom do I address and how
do I go about it?
not advisable to adopt solutions on an
The Developer himself.
individual basis. It is preferable for the
Independently of any verbal measures
General Meeting to decide on the hours
discussed – in your capacity as President
of use, where the owners having an
and therefore as legal representative - it
interest can express their opinions and
is always advisable to have evidence in
make suggestions. A timetable approved
writing of the construction defects and of
in a General Meeting is less conflictive
the petitions presented to the Developer.
because it is binding and is the result of a
Ask the Developer to sign an
collection decision.
acknowledgement of receipt. It is
As this is a matter that concerns all
sometimes advisable to send the
communication through the Notary.
not be delayed, because the liability for
construction defects is subject to expiry
periods. You also have the option of
submitting to the General Meeting the
decision to claim against the Developer for
the defects detected in communal areas.
No. As with all decisions that are not
really urgent, you should bring the matter
up in the next General Meeting, put
forward your reasoning, discuss it and
submit it to the vote.
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OTHER FREQUENT QUESTIONS
I think that, for security
reasons, the locks on the
entrance doors should be
changed. Can I have this done
if I provide each owner with a
copy of the new keys?
Remember that these measures should
SECTION 3
The tenants are approaching
me, as I am President.
Can they do this?
They can consult you on communal
amenities and how they are to be used,
Is the President liable for
approving the engaging
of illegal firms? Or is the
Community?
Both would be held liable. The
as they also are entitled to use them, but
Community could also subsequently claim
not on issues that affect their landlords.
damages from him.
Community information is confidential
and only the owners are entitled to have
access to it (for example the accounts,
debtors, etc.).
In order to stand down as
President, what are the
steps to follow and the
consequences?
An owner wants to
participate in cleaning the
staircase, and in exchange to
reach an agreement for not
paying his service charges.
Can he do this?
It could be possible, providing it has
the agreement of the General Meeting.
Your resignation is only effective if
However, the cleaning of the staircases,
accepted by the General Meeting General
as it is remunerated (in this case, in
(don’t forget that you are elected to
kind) would be a professional activity
office for one year). So, to resign, you
that would require the Community and
need to call a General Meeting. The
the owner in question to comply with
presentation of your resignation must
employment and tax legislation.
appear on the Agenda, and also the
provision for electing a new President.
52
An owner wants to pay his
service charges monthly
instead of quarterly, as do
the rest of the owners,
Is this allowed?
Can an unused tennis court
be converted into a different
facility, for example 2 paddle
tennis courts?
The period covered by community
the Community. If this specifies that the
service charges and the time set for
use of the court is for playing tennis, that
paying them, is established in the General
use has to be respected, or the deed can
Meeting: Therefore these are resolutions
be modified following a resolution taken
that are binding on all the owners and
by the General Meeting. If this resolution
cannot be altered individually. The issuing
is favourable, the modification has to
of community fees on a quarterly or
then be entered into the Land Registry.
six-monthly basis is for practical reasons:
If the deed does not specify the use of
for collecting sufficient funds to cover
the court, the resolution can be adopted
Community obligations at the beginning
in the General Meeting, with no further
of each period. Not all the community’s
formality.
Firstly you need to consult the deed of
bills are monthly, some have to be paid at
the beginning of the quarter.
Is a large Community obliged
to have a Treasurer?
typical for a treasurer are by law the
competence of the Administrator.
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OTHER FREQUENT QUESTIONS
No, the functions that would be
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