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Most people who buy a house or apartment in Tenerife will become a member of a Community of Owners. The law regarding the legal rights and obligations of owners is contained in part of the Spanish Civil Code called the Ley de Propiedad Horizontal (Law of Horizontal Ownership). This law applies to separate houses or terraced properties and to developments of apartments where the ownership could be said to be vertical as well as horizontal!
Whenever parts of the building are jointly owned, or where there are gardens or swimming pools common to all, and when owners share the cost of maintenance and services, then there is ‘horizontal ownership’ and this law applies. It enables a community to run democratically in accordance with the wishes of the majority of owners and is government of the people, by the people, for the people.
The law requires that every Community has its own rules and defines what parts of the Community property belong solely to individuals and what parts are jointly owned.
Each owner’s share in the common property is clearly stated, dependant on the size of the owner’s dwelling in comparison to others. Each owner’s share is called his ‘cuota de participación’ and is important in determining how much he will have to pay towards the cost of maintaining the common property such as roads, gardens, walkways and pool, and providing the necessary services such as wages for gardeners, cleaners, reception staff, refuse removal etc.
An Owners Association is created to co-ordinate the smooth running and upkeep of the development and to represent the needs and rights of owners. A President and Administrator are elected, along with a committee of owners, and a General Meeting is held yearly to clarify or establish new rules and regulations, to appoint or re-appoint an Administrator, to approve a budget for the coming year, to elect a President for the coming year, and to deal with any other matters raised by the committee or owners.
Due to the fact that it takes time to organise a meeting of owners and services are required immediately for the benefit of all, the developer normally appoints the Administrator for the first year, who then runs the complex until the first Annual General Meeting. If during this time, his performance is satisfactory then he will normally be re-appointed until the next A.G.M.
It must not be forgotten that Spanish Law considers the obligation of each owner to pay his share of Community expenses as an obligation superior to all others. Community Fees vary depending on the type of development and standard of upkeep.
Spanish law provides the answer to practically every problem that is likely to arise in a Community, but owners must look after their own interests, attend meetings and vote.
