Buying a flat with community debts: what the law says
If you are going to buy a flat in Madrid and the seller owes fees to the homeowners' association (comunidad de propietarios), part of that debt may end up falling on you. This guide is for the buyer: which of the previous owner's debts stay attached to the flat, how to find out before signing and how to settle it in the contract.
The rule is in article 9.1.e) of the Horizontal Property Act (LPH). Whoever buys a home or premises under horizontal property «is liable with the acquired property itself» for what previous owners owe the association towards general expenses, «up to the limit of those attributable to the elapsed part of the year in which the acquisition takes place and to the three preceding calendar years». The same article states that the flat is legally charged with that obligation, and that this applies even if the buyer's title is registered in the Land Registry.
In other words: the debt belongs to the seller, but the flat is liable for it within that period. Anything earlier falls outside this charge.
The community debt certificate in the sale
Previous owner's community debts that do not show up in the nota simple
Unpaid fees do not appear in the land registry extract (nota simple), unless the association has obtained an entry in the Registry, for example a seizure. That is why reading the nota simple properly is necessary but not enough: the charge under article 9.1.e) LPH applies even if the Registry says nothing.
Nor is everything a neighbour pays the same. The law refers to general expenses for the proper upkeep of the building. Whether a special levy approved for a specific work falls within that charge is something the courts do not interpret consistently, so it is best not to leave it to anyone's interpretation.
Who pays special levies when a flat is sold, and how to withhold part of the price
A common question: a levy the owners' meeting approved before the sale and which is charged in instalments after the deed. Article 9.1.e) LPH does not distinguish when a levy was approved or when it is charged, so what decides is what seller and buyer agree. We suggest putting it in writing in the arras contract and repeating it in the deed: which levies have been approved, who pays each outstanding instalment and what happens if the meeting approves another between the arras and the signing. To find out, ask the seller for the latest meeting minutes as well as the certificate.
If the certificate shows outstanding fees, the cleanest approach is for that amount never to reach the seller: it is deducted from the price in the deed and paid to the association, or withheld until the association confirms payment. That way the flat comes to you without that debt behind it.
What we check before you sign
When a property is bought, we review the land registry extract, the charges, the planning status, pending levies and the state of the contract. We tell you what you are really buying and on what terms, and what risks you take on if you sign under those conditions. The full list is in what to check when buying a home.
How to request a review
Call us or message us on WhatsApp at +34 668 559 739.
Questions about community debts when buying
Can the association claim the previous owner's debts from me?
The flat is liable for what was owed for general expenses in the elapsed part of the year in which you buy and the three preceding calendar years (art. 9.1.e of the Horizontal Property Act). Anything before that period falls outside the charge.
Can the deed be signed without the debt certificate?
Only if you expressly release the seller from providing it (art. 9.1.e LPH). We do not recommend it: it is the document that fixes what is owed.
Who pays a levy approved before the sale?
Article 9.1.e LPH does not distinguish that case. It is decided by what is agreed in the arras and the deed, which is why you should ask for the latest minutes before signing.
How long does the association take to issue the certificate?
Seven calendar days at most from the request (art. 9.1.e LPH). Request it in good time so that its date is close to the signing.