Investment approach
What to check in the owners' association before buying a flat
With the flat the buyer takes on the building's budget, decisions and future repairs. Five association documents to read before the deposit, and how to turn them into money.
Five documents of the comunidad de propietarios (owners' association) are checked before the arras (deposit contract): the secretary's certificate of debts and approved charges, the minutes of meetings, the budget with the reserve fund, the bylaws and the flat's ownership share in the building (cuota de participación). By law the reserve fund is built into the budget at no less than 5% of common expenses (art. 553-6 of the Civil Code of Catalonia, CCCat), and it shows whether the building is ready for repairs without sudden charges.
A comunidad de propietarios is all the owners of flats and units in a building, who own the common parts together and pay for them. How it works from the inside is covered in the article on how the comunidad works. Here the task is practical: what to read before the deposit.
Which association documents to request before the deposit
All five documents exist by law, so the absence of any of them is already a signal.
| Document | What it shows | CCCat provision |
|---|---|---|
| The secretary's certificate of debts | The flat's debts, charges approved but not yet due | art. 553-5 |
| Minutes of meetings (actas) | What was decided and what was put off, disputes, works | art. 553-27 and 553-28 |
| Budget and annual report | The flat's contribution, the building's real expenses | art. 553-19 and 553-20 |
| Reserve fund | Money for repairs without a derrama (special assessment) | art. 553-6 |
| Bylaws (estatutos) and the flat's share | Limits on use, distribution of costs | art. 553-3, 553-11 and 553-45 |
The debt certificate matters because the flat answers for the debts of the current year and the four previous ones, even if they were left by the previous owner. The mechanism is covered in detail in the article on debts to the association. Ask for the certificate or its draft before the arras, not at the notary.
What to look for in the minutes of meetings
The minutes show what is not in the certificate: decisions discussed but not approved. The law requires the minutes to be signed within five days after the meeting, sent to the owners within ten and the minutes book to be kept for thirty years (art. 553-27 and 553-28), so those of recent years should exist.
Read the minutes in full and look for:
- repairs that were discussed and put off: facade, roof, risers, lift;
- the results of the building's technical inspection: more on it in the article on the ITE;
- disputes: with defaulters, neighbours, the developer, a contractor;
- complaints about noise, leaks, use of the common parts;
- demands to stop a prohibited activity in the flats (art. 553-40);
- a change of administrator and its causes.
If the seller says "there are no minutes", with their consent request them directly from the administrator.
How to turn the papers into future costs: a worked example
Worked example, not a forecast. The flat's share in the building is 2.5%. The association's budget is 60,000 € a year. The minutes discuss refurbishing the facade for 180,000 €, with no decision yet. The reserve fund holds 20,000 €.
| Item | Calculation | Amount for the flat |
|---|---|---|
| Ordinary charges per year | 60,000 × 2.5% | 1,500 € |
| Of which the minimum contribution to the reserve fund | 5% of 60,000 = 3,000 €, share 2.5% | 75 € |
| Possible derrama for the facade | (180,000 − 20,000) × 2.5% | 4,000 € |
A charge not yet approved will not appear in the secretary's certificate, and the buyer learns of it only from the minutes. If the repair is nearly decided, it makes sense to factor the 4,000 € into the negotiation or agree who pays it. Costs are divided in proportion to the share unless the bylaws or the meeting's decisions provide otherwise (art. 553-45), so the flat's share is checked against the building's title deed.
What in the bylaws can limit the buyer's plans
The bylaws may limit the use of flats, exempt some owners from particular costs and attach common terraces and roofs to specific flats (art. 553-11). Limits not entered in the Registro de la Propiedad (Land Registry) have no effect against a third party acting in good faith (art. 553-11.3), so the bylaws are checked against the register.
If the buyer plans to let the flat, receive clients or carry out refurbishment affecting common parts, the bylaws and recent decisions are reviewed by the abogado (lawyer). Which works require the meeting's consent and by what majority is covered in the article on refurbishment and neighbours' consent.
When checking the comunidad does not work
The check gives little for a new-build: there is no history, and the first officers may be appointed by the developer before the first meeting (art. 553-15.3). In buildings with fewer than three owners the association runs under the rules of ordinary co-ownership (art. 553-15.9), and the usual package of documents may not exist. A detached house with no common parts is checked against a different list. In all these cases the emphasis shifts to the building's technical condition and the contract.
DNPI Capital takes everything that affects the owner's costs into account in a property valuation before an offer.
Questions and answers
Which comunidad documents does a flat buyer need?
The secretary's certificate of debts and approved charges, the minutes of meetings for recent years, the budget and report, the balance of the reserve fund, the bylaws and the flat's share according to the title.
What is a derrama when buying a flat?
A one-off charge on top of the ordinary one, usually for a major repair. An approved charge appears in the secretary's certificate; one under discussion is visible only in the minutes.
What reserve fund must an association have in Catalonia?
No less than 5% of common expenses is built into the budget. The fund belongs to all the owners, and the seller cannot take their share out when selling the flat.
Can the minutes of meetings be obtained before buying?
Yes, they are usually requested by the seller from the secretary or administrator. The law requires the minutes book to be kept for thirty years, so a claim that there are none should raise a flag.
Do the bylaws apply against the new owner?
Rules entered in the Registro de la Propiedad apply. Those not entered do not affect a third party in good faith, so the bylaws are checked against the register before the deal.
