Tenerife Property Buying Guide
The Community
In most instances when you purchase a property here in Tenerife, you are going to end up as a member of a Community.
On a complex or even in separate houses or terraced properties, where parts of the buildings are jointly owned or where there are common areas such as gardens or swimming pools and the owners are sharing the cost of maintenance and services, there is what is known as horizontal ownership. This is covered by law under the Spanish Civil Code and is called the Ley de Propiedad Horizontal (the Law of Horizontal Ownership). This enables the Community to be run democratically in accordance with the views of a majority of owners. Basically it gives the power to the owners.
Under this law every Community has its own rules and regulations and it defines which sections of the complex etc. belong to the individual owner and which sections are jointly owned by all the owners.
The size of your property very much dictates your share within the complex, your share is known as your cuota de participación and this determines how much you will have to pay in terms of maintaining the common areas, gardens, swimming pools, paths etc. and the provision of services like cleaners, gardeners etc.
The Community or sometimes as it is referred to the Owners Association is formed and is responsible for the running and upkeep of a complex and to make sure all of the owners needs and rights are represented. You would elect a President, Administrator and a committee of owners to ensure the running of the complex and each year a general meeting will ne held. At this meeting rules and regulations will established, the above positions would be filled, the next years budget would be approved and of course any other business, concerns etc. would be discussed.
If you are buying a re-sale property you will find that in most cases the Community is already up and running, it is therefore important that you try to attend the first General Meeting that arises within your ownership, this way you will get a feel for how the community is being run and you will get the opportunity to meet other owners.
If you are purchasing on a new build development, it is normal for the developer to hire the Administrator for the first year, this is because a Community can not really be formed until normally 50% of the owners have taken delivery of their new property. This can take time, therefore the developer will hire a company who specialise in running communities to act as the Administrator for the first year and attend to the running of the complex. As soon as a community has been formed (when 50% of owners are in place) a General Meeting can be called to discuss and implement rules, regulations, budgets etc. but it is normal to wait 12 months from the date the Administrator has been appointed.
The Spanish law which governs the Communities considers that the payment of your Community Fees is an obligation superior to all of your others so it is important to pay your fees as soon as possible after taking ownership. The fees which you will pay are very much dependent on the type of complex and the standards the Community wish to keep it to, large gardens and number of swimming pools are all factors in this.
All potential problems are covered by this law but it is of vital importance that all owners look after their interests and attend all meetings where possible and execute their right to vote.
