Homeowners Associations and the LPH: Meetings, Delinquent Owners, Expenses, and Challenging Agreements

Homeowners Associations: A Practical Guide to the LPH

Living under horizontal property affects millions of Spaniards. The Law 49/1960 of July 21 on Horizontal Property (LPH), amended on multiple occasions (the last substantial reform by Law 8/2013 and Royal Decree-Law 7/2019), regulates owners' rights and obligations, the functioning of meetings, management of common expenses, and challenge mechanisms. This guide addresses the most common practical issues.

Organizational Structure of the Community

The LPH establishes the following governing bodies (Art. 13 LPH):

• Owners' meeting (Junta de propietarios): The supreme decisión-making body. All owners have the right to attend and vote.
• President: Elected from among the owners, holds the legal representation of the community in and out of court (Art. 13.3 LPH). The position is mandatory and lasts one year unless the bylaws provide otherwise.
• Vice-president(s): Optional. Substitutes the president in case of absence or vacancy.
• Secretary: May be an owner or an external person (property administrator). Takes minutes and maintains documentation.
• Administrator: May be an owner or an external professional (certified property administrator). Functions are listed in Art. 20 LPH.

Owners' Meetings: Ordinary and Extraordinary

#### Ordinary Meeting

Must be held at least once a year (Art. 16.1 LPH) to approve the budget and accounts for the previous year. The president convenes the meeting with a minimum notice of 6 days (Art. 16.3 LPH).

#### Extraordinary Meeting

May be convened by the president when deemed appropriate or when requested by at least 25% of the owners representing 25% of the participation quotas (Art. 16.1 LPH). Must be held within 30 days of the request.

#### Quorums for Attendance and Voting

The LPH distinguishes different majority requirements:

Second call: If the quorum is not reached on first call, the meeting may be held on second call (30 minutes later). On second call, any number of owners suffices for simple majority agreements.

#### Absent Owner's Vote

Art. 17.8 LPH provides that absent owners are bound by adopted agreements. The minutes must be notified to absentees, who have 30 calendar days to express disagreement. If they do not, their vote counts as favorable.

Common Expenses and Participation Quotas

#### Participation Quota

Each unit has an assigned participation quota expressed as a percentage of the total building, established in the founding deed (Art. 5 LPH). This quota determines the contribution to common expenses and voting weight.

#### Ordinary and Extraordinary Expenses

• Ordinary expenses: Those included in the annual budget approved at the meeting (cleaning, common área electricity, insurance, administrator fees, elevator maintenance).
• Special assessments (derramas): Extraordinary expenses not included in the budget, such as urgent repairs, improvement works, or adaptations. Approved at a meeting with the corresponding majority based on the nature of the work.

#### Expense Exemption

Art. 17.4 LPH allows owners who did not vote in favor of non-essential improvements to be exempt from paying the assessment, provided it exceeds three months of ordinary charges. However, they cannot be deprived of the improvement if it is divisible.

Delinquent Owners

Non-payment of fees is one of the most common problems in homeowners associations. The LPH provides specific mechanisms for its management.

#### LPH Payment Order Procedure (Art. 21 LPH)

The community may claim liquid, due, and enforceable debts through the special payment order procedure regulated in Art. 21 LPH, in connection with Arts. 812 et seq. of the Civil Procedure Act. The steps are:

1. The meeting must adopt a debt liquidation agreement certifying the amount owed.
2. The secretary, with the president's approval, issues a debt certificate.
3. The debtor is formally demanded payment via certified mail or reliable notification.
4. If payment is not made within the given period, a payment order claim is filed with the Court of First Instance of the location of the property.

#### Deprivation of Voting Rights (Art. 15.2 LPH)

Owners who are not current with their community debts may be deprived of their voting rights at the meeting. The debt must be liquid, due, and enforceable, and must have been previously claimed.

#### Late Payment Surcharge

The community's bylaws may provide for a surcharge or default interest on unpaid fees. If the bylaws do not address this, the legal interest rate applies.

#### Real Property Lien (Art. 9.1.e LPH)

The unit responds with a real property lien for amounts owed to the community by the current and previous owners, limited to the outstanding portion of the current year and the three preceding years. This means that a property buyer may be required to pay the previous owner's debts for that period.

Challenging Meeting Agreements

Dissenting owners may judicially challenge a meeting agreement under Art. 18 LPH.

#### Grounds for Challenge

Agreements may be challenged when they:

• Are contrary to law or the community's bylaws.
• Are seriously harmful to the community's interests to the benefit of one or several owners.
• Cause serious harm to an owner who has no obligation to bear it.
• Were adopted through abuse of rights.

#### Standing

The following are entitled to challenge (Art. 18.2 LPH):

• Owners who recorded their dissent at the meeting (voted against or abstained with record in the minutes).
• Absent owners who express disagreement within 30 days.
• Owners who were unlawfully deprived of their right to vote.

#### Limitation Period

• Three months from the adoption of the agreement for agreements contrary to law or bylaws.
• One year for other cases (seriously harmful, prejudicial, or abusive agreements).
• The period runs from notification of the minutes to the owner.

#### Judicial Procedure

The challenge is processed as ordinary proceedings before the Court of First Instance where the property is located (Art. 52.1.8 LEC). The claimant owner must be current with community obligations or judicially deposit the amounts owed.

Works in the Community

The LPH distinguishes between necessary works, improvement works, and individual works on private elements.

#### Necessary Works (Art. 10 LPH)

Conservation, accessibility, and safety works are mandatory without requiring a meeting agreement:

• Works necessary for the proper maintenance and conservation of the building.
• Universal accessibility works (ramps, elevators) when requested by owners with disabilities or over 70 years old, or when annual cost does not exceed twelve months of ordinary common expenses.
• Works required by public administration (building inspection, energy rehabilitation).

#### Improvement Works (Art. 17 LPH)

Non-essential improvement works require approval by three-fifths of owners and quotas (Art. 17.3 LPH). Dissenting owners are not obligated to pay if the cost exceeds three monthly ordinary charges, although they cannot be deprived of the improvement.

Prohibited and Nuisance Activities

Art. 7.2 LPH prohibits activities in the unit that are prohibited by the bylaws, damaging to the property, or annoying, unhealthy, harmful, dangerous, or illegal. The community president may require the owner or occupant to cease the activity immediately. If the owner does not comply, the community may file a cessation action before the court, which may impose deprivation of the right to use the unit for up to three years.

Lexiel and Homeowners Association Management

Lexiel AI helps lawyers advising homeowners associations locate relevant case law on challenging agreements, illegal assessments, delinquency, and accessibility works. Its semantic search engine finds Supreme Court and Provincial Court decisions filtered by specific subject matter, participation quota, or type of challenged agreement, drastically reducing research time.

Frequently Asked Questions

Can I refuse to pay a special assessment approved at a meeting?

Only if you voted against it, the work is an improvement (not necessary), and the assessment exceeds three monthly ordinary charges (Art. 17.4 LPH). For necessary conservation or accessibility works, payment is mandatory.

How long do I have to challenge a meeting agreement?

Three months for agreements contrary to law or bylaws, and one year for seriously harmful or prejudicial agreements (Art. 18.3 LPH), from notification of the minutes.

Does a property buyer inherit community debts?

Yes, partially. Art. 9.1.e LPH establishes a real property lien limited to amounts owed from the current year and the three preceding years. It is essential to request a debt certificate from the administrator before purchasing.

¿Can my voting rights be removed for not paying fees?

Yes, Art. 15.2 LPH allows delinquent owners to be deprived of voting rights if the debt is liquid, due, and enforceable and has been previously claimed.

¿Is the president position mandatory?

Yes, Art. 13.2 LPH establishes it as mandatory. It may only be excused for personal circumstances justifying impossibility (advanced age, illness). If there is no agreement, the judge may appoint a president by random selection.

What can I do if a neighbor engages in nuisance activities?

The president must formally demand cessation of the activity. If it persists, the community may file the cessation action under Art. 7.2 LPH, which may result in deprivation of the right to use the unit for up to three years and compensation for damages.