President's Handbook

CONTENT
PREPARING TO BE PRESIDENT
What is expected of me?
Knowing your Community
The Vice-President
The Secretary/Administrator
The Annual General Meeting
The Owners
3 Documents that you should keep at hand
Lets get on well together
(Advice for harmonious community living)
SECTION 1
SECTION 2
SECTION 3
SO I’M PRESIDENT…NOW WHAT?
OTHER FREQUENT QUESTIONS
THE PRESIDENT’S “ABC”
Communal Areas
The Regular Budget
Extra Service Charges
Debtors
The General Meetings
4
8
10
12
13
13
14
15
16
18
22
24
28
32
34
38
46

6
This kind of environment is so dependent
on a wide variety of individual
circumstances that over the years it has
even been the inspiration for comics (13
Rue del Percebe), films (The Community,
Thou shalt not kill…..your neighbour) and
even TV series (Aquí no hay quien viva).
And, invariably, they all portray the most
thankless side of the President’s work.
Residents’ Associations, or Communities of Owners as they are known in Spain,
are like people. Each one is unique to itself. The variety of challenges and
situations that can arise in each could, without doubt, be the source for a whole
encyclopedia on the subject.
INTRO

7
In any case, whether you are new to the
job or have been in the position for years,
we have put together this handbook for
you. Here you will find the answer to
most of the basic questions concerning
your function as President of your
Community.
The good news is that it doesn’t have to
be like that. Nowadays it is most likely
that the President of any community will
be well advised by a professional estate
manager, or Administrator. This way, his
effectiveness and confidence in himself
will be rapidly increased. For this reason
it is important to select an Administrator
who has the backup of a team capable
of sorting out problems and transmitting
confidence to the Community.
And remember, if you have any queries
that go beyond the scope of the handbook...
consult a good Administrator.
SOI’MPRESIDENT…NOWWHAT?
www.mediterraneocomunidades.com

10
WHATIS
EXPECTED
OFME?
SECTION1
Broadly speaking,
3 basic functions:

11
PREPARINGTOBEPRESIDENT
2That you call and chair the
Annual General Meetings and
the Extraordinary General Meetings, in
which the owners can make decisions
on the issues or situations affecting your
Community.
1That you be the legal
representative of your Community,
both in and out of court, in all matters
that affect it, like, for example, making
specific claims against an owner for non-
payment of service charges.
3That you see that the resolutions
adopted in each General
Meeting are implemented, observing the
conditions and time limits established in the
Meeting. For example, if it is decided in an
Extraordinary General Meeting to change the
maintenance company, the person or team
handling the administration of the estate will
obtain a number of proposals from which
you will make your choice, assisted by the
Committee, taking into consideration the
parameters desired (price, quality, etc.).
Described in this way, it seems to be too
many obligations for an office that is held
without receiving any remuneration other
than the appreciation of the residents
or the satisfaction of a job well done. But
the fact is, that when it comes down to
it, you will never be alone: the General
Meeting of the Owners (the AGM) will make
the decisions that will guide the Community.
In any case, if you want to be on the safe
side as regards sorting out situations of
any kind, whether legal or technical, we
recommend you place yourself in the
hands of a Professional Administrator with
a capable backup team. This way, terms
like “legal representative”, “emergency
situations or “estate management” will no
longer alarm you. A good administration
team will always work discreetly and
efficiently, ensuring that the decisions made
in the General Meetings are put into effect,
and ensuring that
the amenities and services are kept in good
condition.
You are the President, and as President you
need to have a good team of professionals
behind you.

12
If your Community were a movie, these would be the main characters. Maintaining
correct relationships with each of them throughout the year will provide you with
greater support in the face of any eventuality. Here we list their main features and
responsibilities so that you will know how to make the most of each one.
KNOWINGYOUR
COMMUNITY
SECTION1

13
Secretary-Administrator
Although the President could occupy
the position of Administrator-Secretary,
it is more advisable, wherever possible,
to turn to the professionals for help,
given the number of tasks that have to
be performed. In general terms this
includes: documenting all the decisions
made in each General Meeting, writing
up the Minutes, preparing the budgets,
ensuring that the resolutions adopted
are put into effect, keeping the accounts,
obtaining price offers, handling formalities
for the Community with official
institutions and authorities, being up-to-
date with legislation…
Vice-President
His appointment is regulated under the
same system as for the President.
He will stand in for you whenever you are
absent or if for any justified reason you are
unable to perform the functions of your office.

14
In Section 2 of this handbook
you will find a heading dedicated
exclusively to the Owners General Meeting.
Owners General Meeting
(AGM)
Its function is to discuss all the items
of general interest that affect the
Community, deciding on the best
measures to take, always seeking the
common good. The General Meeting
also has the power to appoint the
persons who are to hold the offices of
President, Vice-President, Secretary and
Administrator.
SECTION1

15
An owner
is entitled to:
· Participate in the General Meetings and
propose items for debate, expressing his
opinion and casting his vote, providing
that he is up-to-date with the payment of
his service charges.
· Carry out improvement work inside his
property/commercial premises providing
that the work does not diminish the
safety of the building, affect its structure
or the rights of other owners.
· Request the General Meeting approve
the physical division or joining of
apartments/commercial premises.
An owner
is obliged to:
· Respect the general amenities of the
Community, use them correctly and avoid
causing damage to them.
· Keep his property/commercial premises
in good condition, taking responsibility
for any possible damage caused to
other owners due to the carelessness or
neglect of other persons for whom he is
accountable (family, tenants, etc.)
· Allow any repairs to be carried out in his
apartment/commercial premises that are
required for the general maintenance of
the building.
· Make his contribution to the general
expenses for the conservation of the
building and its services.
Owners
Each one has certain basic rights and
obligations which, as President, you must
take into account when handling any
problem or dispute.
Generally speaking, these are:

16
3DOCUMENTS
THATYOUSHOULD
KEEPATHANDAs we mentioned before, the variety of situations and unforeseen events that
could arise during your term as President of the Community is practically endless.
Fortunately, there are a number of documents and literature that can help you
respond to any contingency. Here are some that we think are really essential:
SECTION1

17
1 The Joint Common
Property Act
This regulates how a building is divided
up and the relation between the
owners of the private properties and
the communal elements of which it is
composed. It facilitates the organisation
of the co-owners and the maintenance of
the communal elements. Here you will
find all the issues that we have basically
covered in this handbook, set out in
detail. Keep it always on hand!
2 Owners contact
details
Perhaps less obvious but no less
important. Gather together as soon as
possible the contact details of all the
residents (telephones, email, what times
they are at home, etc.). This way you will
achieve fluid communication with them,
making certain formalities easier. The
previous President probably already has
this information. Ask him for it, and if
not, maybe this is a good time to get to
know your neighbours and to introduce
yourself, door to door...
3 Contact details for
utility services
When faced with an unforeseen
event, the best thing is to be able to
react instantly. It is important to keep
all the basic details on hand, such as
telephone numbers of the different
services companies (lifts, administration,
Community emergencies, etc.) This way,
you will be able to act calmly even in the
most unexpected situations.

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-ADVICE FOR HARMONIOUS COMMUNITY-
LETSGET
ONWELL
TOGETHER
Basically, a Community of Owners is nothing more than a group of people, with
all the good and the bad aspects inherent to them. As President, you will surely
come up against a whole multitude of misunderstandings and divided opinions.
There is nothing you can do to avoid this. But, luckily, you can work to create an
atmosphere that will mitigate these drawbacks.
SECTION1

19
How to create
a good atmosphere
Keep these 4 principles always in mind,
and you’ll see how your Community
operates far more smoothly.
· Information: Use both the traditional
means (circulars) and new technologies
(email, social networks) to keep all
the owners up-to-date on any items
of interest. Not only will you gain
their trust, but you will also avoid any
suspicions and last-minute surprises.
· Impartiality: Avoid taking sides with
any of the parties involved in a dispute.
Take this handbook as a reference and
use the Joint Common Property Act to
define your posture. Try to create an
area of consensus in accordance with the
provisions of the Law, and bring the sides
together in the common interest.
· Proximity: Take your appointment as
President as an opportunity to get closer
to your neighbours. To get to know their
strong points and identify what they can
contribute to the group. Appreciate their
ideas or comments, because they could
really surprise you.
· Action: Another aspect in which you
will earn the respect of your neighbours
is this. If you manage to sort out their
problems rapidly and maintain your
composure, you will demonstrate that all
the Community affairs are in good hands.

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How to approach the
diversity of your Community
In your Community you will not only find
many different types of residents and
personalities. You will also possibly be
dealing with residents of cultures and
languages different from your own. They
obviously have the same rights and
obligations as the rest of the owners, but
at times, communicating with them can be
somewhat more complicated.
Here are some basic points of advice for
you to do things the best way possible:
·Doalittleresearchintotheircultureand
countryoforigin. You don’t need an in-depth
study, it would be sufficient to do some
groundwork so that you can, for example,
strike up a conversation with them by way
of introduction assuming, of course, you are
able to understand each other in either of your
languages.
·Trytokeepinconstantcontactwith
them. In spite of the cultural and language
differences, it will make them feel more
secure and encourage them to take a more
active participation in everything related to the
Community.
·Ifpossible,providethemwithacopyofthe
JointCommonPropertyActintheirlanguage,
orsuggesttheytrytoobtainone. With this,
they will be able to clarify many of their doubts
and learn the practical differences between
Spanish legislation and that of their own country
with regard to residents associations.
·Makeuseofaspeciallanguageserviceif
communicationbecomesimpossibleandif
theAnnualGeneralMeetingagreestothis.
Bear in mind that some administration firms
offer this kind of service.
SECTION1

21
How to generate trust…
The good atmosphere in the Community
begins with you. If your neighbours
see you are sure of your actions, they
will automatically have far more peace
of mind and will trust in your good
management of the Community, offering
fewer objections.
To transmit this image of leadership,
there are two very simple courses
of action.
· Present yourself as a team, not as one
single person. Try to engage the help
of a Professional Administrator who will
give you guarantees. Make sure that his
firm has access to advisors and other
professionals in different fields so that
you can perform your task as efficiently
and discreetly as possible, minimising any
inconveniences. The best way to solve a
problem is by knowing how to prevent it!
· Count on your neighbours.
Make it frequently evident that you value
their opinions, and that you take them into
account when looking to find a solution to
the problems they put forward. You are the
President, but the decisions are taken
amongst everyone. It is your job to have
them implemented in the best
manner possible.

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IDENT’S
On the next few pages you will find useful information about matters in which
you will forseeably have to act as President of the Community. We have tried to
cover the situations and the basic doubts that you might have for each one, so
that you always have a quick reference guide at hand.

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SECTION2
COMMUNAL
AREAS
The communal elements or areas are those that are open to the use or utilisation
by all of the owners. These include a wide variety of spaces, such as, amongst
others:
· Facades, renderings, outsides of terraces, balconies and windows…
· Entrance halls, staircases, lobbies, landings, patios…
· Lifts, meter rooms, water tanks.
· Pipes and installations for hot water, air conditioning, heating, etc.
· Security facilities, electronic door-opening systems, collective TV aerials, etc.
· Swimming pools, sports courts and other leisure amenities.

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THEPRESIDENT’S“ABC”It is the Community’s responsibility to ensure the good
condition of both these areas and of the building in
general, ensuring good structural and living conditions,
accessibility and safety.
About the
Internal Regulations
The important thing in a Community is
for there to be a good level of respect
between neighbours. In order to achieve
good neighbourly relations, the residents
as a whole can draw up a set of Internal
Regulations that will regulate, always
within the Law, the use and enjoyment of
the various Communal Areas. These rules
are obligatory for all of the owners and
can be extended or altered in the General
Meeting, provided that the majority of
the owners agree to it.
Some examples of Internal Regulations:
Times and guidelines for hygiene in
the swimming pool, activities that are
permitted/not permitted in a certain
communal area...
Frequent Questions
a) For practical purposes, can all the
Communal Areas be freely used by all
owners?
No. There are what are known as
“communal areas for private use”, which,
briefly, are any areas which, due to their
location, can only be utilised by one (or a
restricted number) of private owners. For
example, certain patios, roof terraces of top
floor apartments, etc. In general, it is the
developer of the complex who originally
would have assigned the use of those
elements to specific owners. If this is not
the case, the owners will have to decide
who is entitled to the use of the area.
Veryimportant:although the use of those
areas is restricted to certain owners, they
have to keep them in good condition and
respect the rights of the other residents at
all times.

26
b) Can an owner ask for a communal
area to be altered?
If those alterations are not strictly
necessary for the conservation,
habitability or accessibility of the building,
owners may not request them, but they
can propose them. Whether they are put
into effect or not will depend on whether
the rest of the owners are in agreement.
Examples of alterations: altering the decoration of the
entrance hall, having a decalcifying system installed, or
security cameras, air conditioning…
c) We have decided, in a General Meeting
to alter a communal area, but one owner
refuses to pay his part of the Extra Service
Charge. Is he entitled to do this?
If the improvement is necessary for the
conservation, habitability or accessibility
of the building, the owner cannot refuse.
If it is not essential, and the owner had
voted against the improvement work, he
may decline to pay if the amount of the
Extra Service Charge exceeds the total of
three months of ordinary service charges.
In these cases, it is difficult to determine
what is necessary and what is non-
essential.
However, bear in mind that in certain
types of services - telecommunications,
gas, the infrastructure for new collective
energy supplies, etc. - a vote against it
will exempt the owner from payment and
from receiving that service.
SECTION2

27
f) One of the owners often uses one of
the communal areas for storing objects
or parking vehicles (boxes, bicycles,
etc.). Can he do this?
He can, providing that he has asked
permission from the Annual General
Meeting for the use of this space, and
the Meeting unanimously agreed to allow
him to use the space.
d) One of the owners has asked for
improvement works to be carried out
for making a communal area more
accessible. Is the Community obliged to
have it done?
In the case where an owner or any of the
persons who live/work in his property are
disabled or are over the age of 70, the
Community has to have the work done,
providing that the total cost of the work
– after deducting any subsidies or public
aid - does not exceed twelve months of
ordinary service charges.
e) We have a swimming pool in the
Community. Are we obliged to engage
a lifeguard?
The legislation on swimming pools
usually varies from one region to
another, so the best thing to do would
be to consult the regulations established
by your regional authority as soon as
possible on issues related to lifeguards,
safety and hygiene in swimming pools. THEPRESIDENT’S“ABC”

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THE
REGULAR
BUDGET
The Regular Budget of the Community is the amount of money that is considered
to be necessary for maintaining its services, on an annual basis. Such services
include, amongst others, cleaning, lift and equipment maintenance, communal
electricity and water, community insurance, etc. This Regular Budget has to be
adopted by the majority of the owners present at the General Meeting in which
it is presented.
SECTION2

29
In order to cover the expenses mentioned,
the Community has to issue service
charges to be paid by each owner,
depending on the percentage established
in his title deed. Any modification to
the system of expenses requires the
unanimous agreement of all owners.
Example: Suppose that in a certain community, each
owner pays a different amount of service charge and
they want to change the system so that everyone
pays the same. It can be done, but the unanimous
agreement of all owners is absolutely necessary.
The Reserve Fund has to be approved in
the same General Meeting in which the
Annual General Budget is approved. In
order to determine what percentage of
that fund corresponds to each owner, the
same system is used as that employed for
calculating the Community service charges.
A word of advice: Try to establish a
Reserve Fund somewhat higher than the
minimum established by law. You are not
likely to be able to undertake any work
of any importance with only 5% of the
Annual Budget.
The Reserve Fund
This obligatory fund exists so that your
Community will always have a “financial
cushion” with which it can cover the cost
of conservation and repair work for the
building, whether regular or extraordinary
items of work. It has to be provided with a
sum of money that in no event can be less
than 5% of the Regular Annual Budget.
This fund can only be used for work related
to the upkeep and repair, never for any
other kind of expenses. But it can be used,
for example, for taking out an insurance
policy for covering damages or the costs
for maintaining the building.
THEPRESIDENT’S“ABC”

30
Frequent Questions
a) Who prepares the Regular Budget?
Normally it is the Administrator. This task
can also be carried out by the President
or, on most occasions, by a professional
engaged by the Community. He will have
the job of proposing a budget prepared in
advance, taking the previous year’s budget
as a reference and anticipating the needs
of the complex for the coming year.
b) If an owner leaves the Community,
selling his apartment or commercial
premises, can he claim his proportional
part of the Reserve Fund?
No. Once it has been set up, the
Community is the exclusive owner of the
Reserve Fund.
c) Is it possible to start a financial year
without having approved an annual
budget?
It is possible, but not advisable. In this
case, the previous year’s budget would
be maintained, which could result in the
community accounts not adding up at
the end of the year, as the expenses and
the requirements of the building can vary
greatly from one year to the next.
For this reason, the owners should make
the effort to agree on a budget, making
any
adjustments that are necessary to the
budget for its approval. If a budget is not
approved, it could be detrimental in the
long run to everyone.
SECTION2

31
d) When must each owner pay his
monthly service charge?
As a general rule, the General Meeting
will set a time limit in which the owners
have to punctually pay their service
charges. For the regular service charges,
the time limit set will continue to be in
force until it is changed in the future for
any other.
e) Do the service charges necessarily
have to be collected monthly?
No. Although the Joint Common Property
Act mentions “regular monthly service
charges”, each community can set the
basis that it considers most appropriate
(every two months, quarterly, half yearly,
yearly…).
Recommendation: if the service charges
are sent out at least quarterly, you will
avoid bank charges for the processing of
payment orders.

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As President, you must have a pretty clear
idea of how to approach the issue of an Extra
Service Charge, as this is one of the items
where most protest and disagreement can
arise amongst owners.
Below you will find some tips that will
help you to handle the situation.
EXTRASERVICE
CHARGESEvery now and then, it is normal for the Community to have to incur an unforeseen
expense (repairs, refurbishment of the amenities, etc). On some occasions, this
expense cannot be paid out of the regular funds available to the Community. In this
kind of situation, the normal course is to issue an Extra Service Charge: an additional
feethateachownerhastopay,ontopoftheregularservicechargesoftheCommunity.
Frequent Questions
a) Who can ask for extraordinary action
to be taken?
In principle, any owner could observe a
problem or an area for improvement in the
building that might require an Extra Service
Charge. That owner should suggest the matter
to the President so it can be included in the
Agenda for the next General Meeting, where
the extraordinary item entailing an Extra Service
SECTION2

33
Charge must be explained, debated and, if
the case, approved. It usually suffices to
have a vote in favour from the majority of
the owners present, providing that the work
in question is necessary for the conservation
of the building. However, Extra Service
Charges can originate from requirements
set by the public authorities who oblige the
community to carry out work for conservation,
refurbishment, accessibility, safety...
b) Can one of the owners refuse to pay an
Extra Service Charge?
It depends on the type of work or alteration
for which the Extra Service Charge is
needed. If it is absolutely necessary for the
correct conservation of the building, no
owner can refuse, and the Community can
even take legal action to claim the amount
that it is owed. If, however, the Extra Service
Charge is to be used for work or services that
are not essential for the conservation of the
building, there are cases in which, if the Extra
Service Charge is in excess of twelve months
of ordinary service charges, an owner can
refuse to pay it, providing that his vote had
been against it. The Joint Common Property
Act is somewhat vague on this point, so you
might have to consult with a professional, if
you encounter this problem. In the case of
Example: The owners decide in a General Meeting to
replace the entrance gate, which is in perfectly good
condition, for a new one of stainless steel. One of the
owners votes against it and refuses to pay the Extra
Service Charge, as the cost exceeds three months of ordinary
service charges. He is entitled to do this, even though he
cannot be deprived of the use of the improvement.
c) Extra Service Charges are paid according
to participation percentages or equally
between all of the owners?
In the case of replacing or repairing
communal elements, the owners have to pay
according to their percentage of participation
that appears in their title deed. However, in
some Communities the owners decide by
unanimous agreement to pay the Extra Service
Charge divided equally between everyone.
d) A new owner refuses to pay an Extra
Service Charge approved before he
purchased the property. Can he do this?
No, the Extra Service Charges are payable by
the person who is the owner at the time of
issue. Furthermore, the new owner is liable
for the debts of the property during the year of
purchase and the three previous calendar years.
resolutions taken on communal installations
such as for telecommunications, renewable
energies or new energy utilities, an owner may
refuse, but he will then not be able to use those
services.

34
Because of this, it is essential for you
to have some basic notions on how
to proceed in this kind of situation, in
order to be able to tackle it as soon as
possible.
Debtors are, without doubt, one of the
greatest causes of conflict amongst
owners, as they have a direct effect on
the Community budgets and therefore
on the correct upkeep of the complex,
bringing about evident effects in the
quality of life of the owners who do
punctually pay their service charges.
DEBTORS
Debtors are an inconvenience that have affected Communities practically since
their origin. For this reason it highly likely that, sooner or later, you will have to
tackle this classic problem. Even more so bearing in mind that owners are not the
only persons who may fail to pay. The various apartments of your building can also
belong to banks, or to the developers themselves, who are not always willing to
keep their service charges up to date with payment.
SECTION2

35
Frequent Questions
a)WehaveadebtorintheCommunity. Does
hecontinuetoenjoythesamerightsasthe
ownerswhopaytheirservicecharges?
A debtor owner retains all his rights, except
the right to vote in the General Meetings, or
to challenge the resolutions adopted, until
he has brought himself up-do-date in the
payment of his service charges. You will
have to inform the owner of his outstanding
payment prior to the AGM, and that he will
be deprived of his vote if he comes to the
next General Meeting without having settled
his debt.
b)Whatactionistobetakenwithadebtor?
Every case is obviously different, but as a
general rule, you should try and settle the
matter at Community level, sending an official
demand for the payment of his debt. If it is not
possible to reach an agreement through this
channel, the Community can decide on taking
court action. To do this, the only requirement
is that the General Meeting approves the
figure of the outstanding debt of the owner,
and a certificate stating the resolution where
the debt is listed and approved.
In these cases, an “order for payment
procedure” is usually filed, which is much
quicker than a conventional trial procedure,
and for which it is not necessary for barristers
or court solicitors to be present. The
President (or failing this, the Administrator
who has been authorised by the General
Meeting) will be in charge of handling
the court formalities, receiving official
notifications, filing applications, etc. The
debtor will have to assume the legal costs for
the procedure.
In any case, as we mentioned, the
circumstances of each debtor should be
considered before taking legal action. It is
always advisable to give payment facilities to
those persons who show a real intention to
find a solution to the situation.
Example: One of the owners stopped paying his regular
service charges a couple of months ago, due to becoming
unemployed. He is an owner with no former history of late
payment, and seems to be willing to rectify the situation
if, as a special measure, a different payment schedule can
be negotiated. In this case, it could be appropriate for the
General Meeting to agree to negotiate the payments plan, if
it is considered to be reasonable.

36
c) One of the owners has died and left
an outstanding debt. How should I
proceed?
The usual thing is to try and locate the
heirs and relatives of the owner, reaching
an agreement for them to take over the
debt. If they refuse, the Community can
engage a lawyer to handle the matter,
in the last resort taking court action
that could result in the property being
auctioned if the heirs do not agree to
settle the debt.
The case could also arise that no-
one can be located, in which case the
Community would file a general claim in
Court, against unknown heirs. Each case,
obviously, will be different, but it would
be wise to have the services of a lawyer
or a professional.
d) As a result of several owners failing
to pay their service charges, the
Community in unable to pay what it
owes to an external supplier, who is
threatening to take us to court for non-
payment. What is the liability of the
owners who are up to date with their
service charges at a legal level?
The matter is somewhat complex.
On the one hand, the supplier who is
taking you to court for non-payment
can demand that the Community makes
payment out of community funds. But
he can also decide to claim jointly with
the Community against each individual
owner, who can refuse to pay providing
that they can demonstrate that they are
up-to-date with the payment of all their
service charges issued to date by the
Community.
SECTION2

37
e) One of the properties is rented out to
a couple, and they have not paid their
service charges for this month. Against
whom should the Community claim them?
It is always the owner’s obligation to
contribute to the general expenses of the
Community, regardless of any arrangement
he has with the tenant to the effect that
the latter pays the service charges. For this
reason, the Community should always contact
the owner for claiming any non-payment.
f) Is it legal to publish a list of debtors
on the Community notice board?
It is not advisable to do this in case you
might be infringing the Law on Personal
Data Protection. Try to use other channels
for informing debtors (by post, email, etc.)

38
The President’s function in
the General Meetings
· You should chair the meeting with
courtesy, showing respect for all opinions
and moderating the exchanges so that
everyone feels they have been heard.
· You should appear to be seen as the
President of everyone, without taking
sides in confrontations. The only side you
should be on is the side of the Law.
THEGENERAL
MEETINGSAs President you have to have one thing very clear, you are the person who
transmits, represents and implements the decisions of the General Meeting, and
onlyforreasonsthatyouconsidertobeanemergency,canyoutelltheAdministrator
to handle the repairs or measures necessary, without any prior resolution having
been taken, and which will have to be reported in the next General Meeting.
· Right from the beginning you should avoid
letting any possible confrontations pass to a
personal level.
· You should act as a mediator, finding a point
of consensus between opposing postures
and defusing the tension, if necessary.
· You have to submit the issues debated
to a vote.
SECTION2

39
Responsibilities of the
Annual General Meeting
(AGM)
· Appoint the persons who are to hold
the offices of President, Administrator or
Secretary.
· Listen to complaints that owners might
have about the management undertaken
by the President, Administrator or
Secretary.
· Approve the Regular Annual Budget and
establish the Reserve Fund.
· Approve estimates and schedules for
carrying out repair works on the building,
whether regular or extraordinary.
· Draw up or modify, as the case may be,
the Community Bylaws and the Internal
Regulations.
· Be informed about, discuss and decide
on other matters of general interest put
forward in the points of the Agenda.
The Minutes
All the resolutions taken in each Owners
General Meeting (AGM) must be
recorded in the Minutes, which have
to be signed by the President and the
Secretary. Copies of this document must
be sent as quickly as possible to all the
owners, so that they are informed of all
the decisions made.
The Minutes of each General Meeting
must be transcribed punctually into
the Minutes Book and signed by the
Secretary and by the President. This
book must be correctly processed in the
Land Registry.

40
Frequent Questions
a) When does a General Meeting have
to be held?
The Annual General Meeting has to be held
at least once a year in order to approve
the accounts and adopt the budgets for
the coming year. Additionally, it can be
called whenever the President thinks it is
appropriate and justified for dealing with
any matters of interest that have arisen.
The President is not the only person who
can call a General Meeting. If one quarter
of the owners of the Community (or a
number representing a minimum of 25%
of the participation percentages) think a
meeting should be held, they can call one.
The official notice of the General Meeting
must be sent out by the President or the
owners calling the meeting, and must
clearly indicate the points to be dealt with
in the meeting, the date, the times of the
first and second call, if any. Together with
the official notice, a list of debtors must be
sent, with the warning that they will not be
entitled to vote if they are not up-to-date
with payment before the Meeting.
b) How much advance notice is required
for holding a General Meeting?
In the case of an AGM, the notice must be
sent out at least six days in advance. For
an EGM, with as much advance notice as
possible, so that everyone interested can
be informed.
c) What time should I set for holding a
General Meeting?
General Meetings can be held at different
times: in their first and second call. In order
to be held in the first call, there has to be
a majority of owners present who also
represent the majority of the participation
percentages. If this quorum is not present,
the meeting has to start at the time set for
the second call, this time with whatever
number of owners who are present.
d) Is it obligatory to attend the General
Meetings in person?
You can attend a General Meeting in
person, or in specific cases you can
designate someone else to represent
you by way of a signed proxy form. For
example, in the case of rented properties,
even though the vote corresponds to the
SECTION2

41
owner, he can assign his representation
to the person renting his property. Or
if the property is in beneficial use, the
owner will automatically be considered
to be represented by the person with
the life interest, even though the
representation must be specific as to the
votes to be cast for extraordinary items
of building or improvement work, and
for resolutions on communal services of
general interest.
But your presence as President is
absolutely necessary, and you cannot
delegate this function.
e) Who can include items on the Agenda
for debate and adoption in a General
Meeting?
Any owner can propose an item he
considers to be of interest to the
Community by presenting it in writing
to the President, explaining the matter
clearly. The President will present it for
discussion on the Agenda for the next
General Meeting.
f) If an owner has several properties
or commercial premises, does he hold
several votes?
No, a multiple owner only has one vote,
but the participation percentages of all
his properties are added together when
voting. Normally, for a resolution to be
valid, it requires a double calculation
of majorities: the required majority of
owners must also represent the required
majority of participation percentage.
At the same time, any owner who
owns several properties or commercial
premises
can, alone, call a General Meeting
to discuss an item of interest to the
Community providing that, by adding all
the apartments and commercial premises
together, he accounts for a minimum of
25% of the participation percentage.

42
g) What quorum is necessary for the
General Meeting to adopt a resolution?
It depends on the kind of resolution in
question. Below you will see a table
describing, in broad terms, the most
usual possibilities. But bear in mind that
as it depends so much on the particular
cases, it is probable that you will find
circumstances that are not included in
the basic table. If you come across one of
those circumstances, consult a specialist:
UNANIMITY
For any resolutions that involve the
approval or the modification of the
rules contained in the title deeds of the
community, or the Community Bylaws,
like changes of the percentages of
participation in the communal expenses,
unless the Law specifically establishes any
other kind of resolution.
MAJORITY *
In the first call, for resolutions that are
not included under the previous point, a
favourable vote from the majority of all
owners is required. In the second call, only
the majority of the owners present at that
Meeting who in turn represent half of the
sum of the participation percentages of
those present. A majority vote can also
serve for establishing lift services and
certain construction items for removing
architectural barriers.
SECTION2

43
*In these cases we are assuming that each
part of the owners referred to represents in
turn an equivalent part of the participation
percentages.
THREE FIFTHS *
For all those agreements to establish or
eliminate common services (surveillance,
concierge, etc.), whether this requires
modifying the deeds and bylaws, lease
involving common elements without
specific use, setting or deletion of
equipment or systems to improve
energy or water efficiency. Also to
enclose terraces, which also requires
administrative authorization.
ONE THIRD *
Valid for any resolutions that involve the
installation or adapting of communal
infrastructure providing access to
telecommunication services or collective
energy installations (internet, television,
natural gas, private or communal systems
for making use of renewable energies, etc).
In these cases, any owner not voting in
favour is not obliged to pay for that service.
If this case arises, he will not be able to
make use of that service unless he later
decides to join the service, paying his part.

44
h) How can we obtain the majority
necessary in resolutions that require a
unanimous vote if only a few owners
have come to the General Meeting?
All owners have the obligation to provide
the Community with an address in Spain
where they will be sent the decisions
taken in each General Meeting.
For issues that require a unanimous vote
or a qualified majority, the vote of the
absent owners will be taken to be in
favour of the resolution adopted if they
do not express any disagreement with
the Minutes within 30 calendar days.
i) Can a resolution adopted in a General
Meeting be annulled?
A resolution can only be voided by a Judge,
following a challenge filed by any owners
who had voted against the motion in the
General Meeting (which must be recorded
in the Minutes), any owners who were
absent for any reason, or any who had
been incorrectly deprived of their right to
vote. And, at the same time, bear in mind
that not all resolutions are challengeable.
In order to file a challenge, any of
the following circumstances must be
present:
· That they are contrary to the law or to
the Community Bylaws.
· That they are a serious detriment to
the interests of the Community itself, in
benefit of one or more owners.
· That they are a serious detriment to any
owner who is not legally obliged to accept
them, or that they have been adopted by
abuse of rights.
SECTION2

45
j) Do the Minutes have to reflect opinions
or other comments?
The Minutes have to record the
resolutions and some reference as
to how they were reached or a brief
summary of the debate. They should
avoid reflecting superfluous comments
and criticisms, insults and other hurtful
words which, although they formed part
of the meeting, should not form part of
the Minutes.
· In order to challenge a resolution,
the owner must be up-to-date with payment
of all his service charges to the Community,
and take into account that the Law sets time
limits for filing such challenge: 3 months since
the adoption of the resolution, unless it entails
any actions that are contrary to the law or
to the Community Bylaws, in which case the
time limit will be one year. Bear in mind that
the court costs will be payable by the party
upon whom they are imposed by the Judge.
In principle, the party filing the challenge will
assume the costs, and once there is a final
ruling, the judge will establish who is to finally
pay them.
At the same time there are resolutions
that will be considered to be void, without
the need for any challenge, because either
they infringe the law, or are contrary to
accepted moral standards or public order, or
they entail fraud.
Forexample: it cannot be approved to pay invoices without
VAT, or that the Community employees should work without
being registered with the Social Security, as these resolutions
would be infringing the Law. Nor can resolutions be adopted
that are discriminatory or abusive and do not respect the
equality and rights of everyone. If a resolution is annulled, it
is normally the Community that has to pay the costs.

47
EQUENT
NSIn this final Section you will find the answer to doubts and problems that are not
accommodated under any of the areas dealt with above, or that include aspects
combined from several different areas. We have selected them in accordance with
their habitual use, but remember that the number of situations and aspects that
can arise in a Community of Owners is practically infinite. For the more complex
cases, it is advisable to have professional advice.

48
SECTION3
Can CCTV cameras be fitted in
the Community?
Providing that the installation is approved
by a vote in favour from 3/5 of the
owners (assuming that amongst them,
they account for 3/5 of the participation
percentages), the system can be fitted,
only in communal areas and must not be
focused toward the interior of any private
property.
In order to comply with regulations of
the protection of privacy, there must be
visible signs informing that the area has
“video surveillance”.
What action can I take
against noisy or annoying
residents?
The occupants of the properties may not
carry out in them or in any part of the
building any activities prohibited under
the Community Bylaws, or any that
cause damage to the complex or that
contravene the general provisions on
annoying, unhealthy, noxious, dangerous
or illicit activities.
The first thing to do is to talk to them
and make them aware of the complaints
of other residents, inviting them to
rectify their behaviour. Take into account
that they might not be aware of the
inconvenience they are causing. If they
continue to behave the same way, you
should contact them, and the apartment
owner, in writing. The latter must be
informed of any incidence of this kind
because he could become an ally of the
Community in sorting out the problem.
II have been elected
President of my Community.
Do I have to accept?
In principle yes. If there are justified
grounds as to why the person elected
should not accept the appointment (long
periods of absence, illness, etc.), he can
legally avoid the responsibility.

49
OTHERFREQUENTQUESTIONS
Example: Many residents are inconvenienced by the
smell left in the lifts by the dog of one of the owners.
The President of the Community speaks to him and they
reach the agreement that the dog will always go up and
down using the stairs.
How should I act in the case
of pets in the Community?
They are permitted, unless the Bylaws
or the Internal Regulations have a clause
adopted by a unanimous vote to prohibit
keeping pets in the complex. The only
exception is if the animal in question
causes inconvenience or engages in
activities that are unhealthy, noxious or
dangerous, which will have to be proved.
If this is the case, the pet could be
prohibited from the Community.
In any case, before taking any definitive
action, it is wise to speak face to face
with the owner of the animal, to see if
the inconveniences caused by his pet
can be lessened or eliminated easily and
amicably. You should also be informed
as to whether your local authorities have
any regulations in place regarding pets.
In some cases, municipal regulations can
also apply to Communities, such as the
precaution of not riding in a lift with the
animal when it is occupied by another
resident, etc.
Are residents permitted to
have barbecues on their
patio or terrace?
Yes, unless there is any resolution
prohibiting this.

50
A resident creates a storage
room in a garage space. Is this
permitted?
The creation of a new storage
room implies a new division of the
condominium property of the complex.
To do this, he has to first apply to the
Community. If, as President, you receive
this type of request, you have to include
it in the Agenda for the next General
Meeting as it has to be approved by a
unanimous vote. If this vote is obtained,
the title deed of the complex will have to
be modified to include the existence of
the new storage room.
Two residents are
complaining about water
leaking from one apartment
to the other. What is the
Community’s liability?
In the beginning none, providing that the
leak does not affect or is not produced
by any communal area. Through their
own insurance, the owners will have to
establish the source of the problem and
come to an agreement.
The residents are demanding
that the Developer should
repair the defects in their
properties. What can I do
about this?
These claims have to be made personally
by the owner affected, but it is advisable
that, as President, you maintain a
relationship with the Developer so you
can mediate and become involved when
these complaints are not isolated and
involve a number of residents.
I would like to obtain a copy
of the lift maintenance
contract. Am I entitled to ask
for it?
Normally the Community will have a copy
of the lift maintenance contract, kept by
the Secretary, so you will be able to consult
it whenever you need, but if it has been
misplaced, you, as President, can ask the
maintenance company for a copy.
SECTION3

51
I want to make the
Developer take
responsibility for the defects
in the communal areas.
Whom do I address and how
do I go about it?
The Developer himself.
Independently of any verbal measures
discussed – in your capacity as President
and therefore as legal representative - it
is always advisable to have evidence in
writing of the construction defects and of
the petitions presented to the Developer.
Ask the Developer to sign an
acknowledgement of receipt. It is
sometimes advisable to send the
communication through the Notary.
Remember that these measures should
not be delayed, because the liability for
construction defects is subject to expiry
periods. You also have the option of
submitting to the General Meeting the
decision to claim against the Developer for
the defects detected in communal areas.
Owners are not in agreement
with the hours of use of the
paddle tennis court.
What can I do?
As this is a matter that concerns all
the residents who use the court, it is
not advisable to adopt solutions on an
individual basis. It is preferable for the
General Meeting to decide on the hours
of use, where the owners having an
interest can express their opinions and
make suggestions. A timetable approved
in a General Meeting is less conflictive
because it is binding and is the result of a
collection decision.
I think that, for security
reasons, the locks on the
entrance doors should be
changed. Can I have this done
if I provide each owner with a
copy of the new keys?
No. As with all decisions that are not
really urgent, you should bring the matter
up in the next General Meeting, put
forward your reasoning, discuss it and
submit it to the vote.

52
The tenants are approaching
me, as I am President.
Can they do this?
They can consult you on communal
amenities and how they are to be used,
as they also are entitled to use them, but
not on issues that affect their landlords.
Community information is confidential
and only the owners are entitled to have
access to it (for example the accounts,
debtors, etc.).
An owner wants to
participate in cleaning the
staircase, and in exchange to
reach an agreement for not
paying his service charges.
Can he do this?
It could be possible, providing it has
the agreement of the General Meeting.
However, the cleaning of the staircases,
as it is remunerated (in this case, in
kind) would be a professional activity
that would require the Community and
the owner in question to comply with
employment and tax legislation.
In order to stand down as
President, what are the
steps to follow and the
consequences?
Your resignation is only effective if
accepted by the General Meeting General
(don’t forget that you are elected to
office for one year). So, to resign, you
need to call a General Meeting. The
presentation of your resignation must
appear on the Agenda, and also the
provision for electing a new President.
Is the President liable for
approving the engaging
of illegal firms? Or is the
Community?
Both would be held liable. The
Community could also subsequently claim
damages from him.
SECTION3

53
An owner wants to pay his
service charges monthly
instead of quarterly, as do
the rest of the owners,
Is this allowed?
The period covered by community
service charges and the time set for
paying them, is established in the General
Meeting: Therefore these are resolutions
that are binding on all the owners and
cannot be altered individually. The issuing
of community fees on a quarterly or
six-monthly basis is for practical reasons:
for collecting sufficient funds to cover
Community obligations at the beginning
of each period. Not all the community’s
bills are monthly, some have to be paid at
the beginning of the quarter.
Is a large Community obliged
to have a Treasurer?
No, the functions that would be
typical for a treasurer are by law the
competence of the Administrator.
Can an unused tennis court
be converted into a different
facility, for example 2 paddle
tennis courts?
Firstly you need to consult the deed of
the Community. If this specifies that the
use of the court is for playing tennis, that
use has to be respected, or the deed can
be modified following a resolution taken
by the General Meeting. If this resolution
is favourable, the modification has to
then be entered into the Land Registry.
If the deed does not specify the use of
the court, the resolution can be adopted
in the General Meeting, with no further
formality.

54
Text & Design: www.imaginarte.com
Drawings: María Velázquez
Published by: Mediterráneo Servicios de Gestión Inmobiliria SAU
Av. de la Estación, 5, esc. izq. entlo. · 03003 · Alicante
www.mediterrenaeocomunidades.com

www.mediterraneocomunidades.com
Mediterráneo Servicios de Gestión a Comunidades
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