What to ask the administrator before buying into a building

Terms used

• Estatutos — The estatutos are the community's statutes: the rules on how the building is used and run, beyond the general law.
• Derramas — A derrama is a special payment owners must make, on top of regular fees, to cover works or unexpected costs.
• Actas — The actas are the written minutes of owners' meetings, recording decisions on works, payments and disputes.
• Cuota de participación — The cuota de participación is your flat's percentage share of the building, used to split costs and votes.
• Administrador de fincas — The administrador de fincas is the professional who manages the building's accounts and paperwork for the community.

Key rules

• Debt certificate: The community must issue it within seven natural days of the request.
• Who asks: The administrator may refuse a non-owner, so the seller usually makes the request.
• Works and derramas: Agree in the sale contract who pays those approved before the sale.
• Home insurance: Community insurance usually covers common areas, not the inside of your flat.

Ask for the papers before you sign

When you buy a flat in a shared building, you take on the community's rules, and in some cases its debts. So request the statutes, the minutes, the debt certificate, details of planned works and the insurance details from the administrator before you sign anything. The documents list below shows everything to collect, and the checklist shows the order to work in.

Who asks, and how

The administrator (administrador de fincas) does not have to give documents to someone who does not own the flat yet. In practice the seller asks, or asks the administrator to release the papers to you. Ask your seller to do this early, and put the request in writing.

The debt certificate

The debt certificate (certificado de deuda) shows what the flat owes the community. The community secretary signs it, with the approval of the president. The community must issue it within seven natural days of the request, so ask early because the deed needs it.

The seller must state in the deed whether they are up to date with payments, and attach the certificate. You can waive the certificate in writing, but this is rarely a good idea. The notary records the position.

You can be held liable for unpaid fees of the flat from the current year and the previous year. Do not treat the certificate as optional.

Statutes and internal rules

The statutes (estatutos) can ban or limit things like holiday lets, pets, work on terraces or business use. Read them before you commit.

Statutes that are not registered in the Property Registry do not bind a buyer who acted in good faith and did not know about them. Do not rely on this. If you have read the statutes, you are likely to be bound by them. Whether you knew is a question of fact that a court would decide.

Minutes, works and special payments

The minutes (actas) of the last 2 to 3 years tell you what the community has approved and what is coming. Look for:

• approved works that are not yet done or not yet paid
• derramas, which are special payments that owners must make on top of regular fees
• lawsuits or claims against or by the community
• a meeting about to be called, and what is on its agenda

Also read the budget and last accounts for the reserve fund level and unusual items. Check the building inspection report (ITE/IEE): an unfavourable result means repairs are required.

Ask the administrator for a written statement of pending derramas, debts, loans and legal proceedings.

Who pays for works approved before you buy

Settle this in the sale contract. Who pays can depend on when the works were approved and when they are invoiced, so state it clearly. Ask the seller to confirm in the contract that there are no unapproved or unpaid works, and agree who pays any derrama approved before the sale.

Insurance

No national law forces every community to have building insurance. Still, nearly all do, and the statutes, a regional rule or a mortgage lender may require it. Ask for the policy and proof that it is paid.

A typical community policy covers fire, explosion, water damage, storms, theft or damage to common areas, and the community's liability to third parties. It usually covers the structure and common areas, not the inside of your flat or your belongings. You insure those yourself with home insurance.

Rules can differ by region, for example in Catalonia, so read the actual policy and statutes.

Also ask about

Ask for the fee amount, the share of the building your flat holds (cuota de participación), and any rules or contracts for the lift, pool or garage.

Documents you need

• Debt certificate, signed by the community secretary with the president's approval, showing any unpaid fees. The seller normally requests it.

• Community statutes (estatutos) and any internal rules (reglamento de régimen interior).

• Title deed of the horizontal division (título constitutivo), showing your flat's share of the building (cuota de participación).

• Minutes (actas) of owners' meetings from the last 2 to 3 years, which record approved works, derramas and lawsuits.

• Current annual budget and the last approved accounts, including the reserve fund level.

• Building insurance policy and proof that it is paid.

• Technical Building Inspection report (ITE/IEE) and any energy certificate of the building.

• A written statement from the administrator on pending derramas, debts, loans and legal proceedings.

Checklist

• Ask the seller to request the minutes of the last 2 to 3 years from the administrator.

• Read the minutes for approved works, agreed derramas and lawsuits.

• Check the budget and accounts for the reserve fund level and extraordinary items.

• Ask whether a meeting is about to be called and what is on the agenda.

• Read the insurance policy to see what it covers and whether the statutes require it.

• Arrange your own home insurance for the inside of your flat.

Frequently asked questions

Does a buyer have to follow statutes that are not registered?

Not always: unregistered statutes do not bind a buyer who acted in good faith and did not know of them. You are still bound by the law's own rules, and by the statutes if you knew them. Ask for a copy before signing so there is no doubt about what you knew.

Can I ask the administrator for documents if I do not own the flat yet?

Not directly, because the administrator does not have to give documents to someone who is not yet an owner. The seller usually has to request them for you. Ask the seller to get the minutes, accounts and insurance policy, and to confirm there are no pending works.

Who pays for works the community approved before I buy?

It depends on what the contract says, so write it in. Liability can turn on whether the works were approved before or invoiced after the sale. Ask the seller to confirm in the contract who pays approved derramas (special levies) and that no unapproved or unpaid works exist.

Does the community insurance cover the inside of my flat?

No, community insurance usually covers the common areas and the structure, not the contents or interior finishes of your flat. You insure those yourself with home insurance. Ask for the policy to see exactly what the community cover includes.