How to set up a community of owners

Every farm must have a Community of Owners that brings together all those who own a house, premises or other unit of independent occupation . In the Spanish case, these are governed by the Horizontal Property Law and their main objective should be to defend the common interests of the owners, so that the management of the Community should always be impeccable. In this article we explain the keys on how to build a community of owners.

Steps to follow:

one

First, it should be noted that the community of owners of a farm will be formed by:

  • Homeowners
  • Owners of premises
  • Owners of any other independent occupation unit .

Also, it is important to highlight that it is not about the tenants or tenants of homes and premises, but the people who own them.

two

The first thing that must be done to establish a community of owners will be to establish it as such, through a first meeting of all the owners in which the Constitution Act must be drafted with the agreements taken. This official document must collect all the agreements taken in the first Meeting of Owners of said Community.

3

In turn, the Statutes will be drafted in the first Board and the necessary positions will be appointed in all the community of owners that will form the governing body, as established in Spain, art. 13 of the Horizontal Property Law (LPH):

  • Owner board
  • President of the Community: appointed among the owners, by election or by means of rotating or drawing lots.
  • Vice President / s of the Community (optional)
  • Secretary: this and the following position can be exercised by the President.
  • Administrator

It will be necessary to proceed with the authorization of signatures and approve an initial budget . A batch of Questions and Questions must also be opened so that any owner can intervene.

4

Another step to establish a community of owners will be to legalize the Book of Minutes, which you can buy in a stationery, depositing it in the Land Registry in which the property is registered.

5

On the other hand, you must request the NIF (Fiscal Identification Number) of the Community of Owners, through the corresponding Tax Office. It must be submitted:

  • Copy of the appointment of the President of the Community.
  • Photocopy of the President's ID.
  • Writing of Horizontal Division of the property.

You can see here the necessary steps on How to request the tax identification code.

6

It will be of vital importance also to contract and subscribe to an insurance to cover the damages of the property and the general facilities, as well as of civil responsibility. To do this, it is advisable to consult different insurance companies to see which one best suits the needs of the Community of Owners.

7

Once the Community of Owners is constituted, it must be managed in the best possible way, either through contracting the service of an external Administrator or internally. For this second case, we offer you our article How to manage a community of owners with some very practical advice.