In the purchase of a property with an approved spill over, the responsibility for payment falls on the owner at the time it becomes due, according to article 17.11 of the Horizontal Property Law. If the instalment is paid in monthly instalments...
Imagine that John and Mary are in the process of buying their dream home.
They have found a beautiful home in a quiet neighbourhood community and are excited to start this new phase. They find themselves in the following situation: the community of neighbours has approved a levy to make improvements to the building (in this case, a beautiful infinity pool). Suddenly, they ask themselves: "Who should pay for this surcharge, us or the seller?"
The answer to this question is found in the Horizontal Property Law, specifically in article 17.11, which states:
"11. The payment of contributions for the payment of improvements made or to be made to the property shall be payable by the owner at the time of the payment of the sums due for the payment of said improvements".
This article clarifies a crucial issue: the responsibility for paying the derrama falls on the owner who owns the property at the time when the community of neighbours demands payment of the corresponding amounts.
Breaking down Article 17.11
To better understand this provision, let us look at some key points:
Time of enforceability:
"Enforceability" refers to the moment when the community of property owners formalises the obligation to pay the derrama. This can be, for example, when the corresponding receipt is issued or when the community sets a payment date.
Responsible owner:
According to the article, the owner who must pay the spill is the one who is the owner of the property at the time it becomes due. This means that, if the date on which the derrama is due falls before John and Mary have completed the purchase, the seller is liable. But if the date is after they have purchased the house, then the liability falls on them as the new owners.
Special Case: Payment of the Overflow in Monthly Instalments
Now, suppose the derrama is not paid all at once, but is divided into several monthly instalments. What happens if John and Mary buy the house when the derrama has already started to be paid?
In this case, the same basic rules of Article 17.11 apply. Each monthly payment is due on the date it is due. Thus, payments due before the purchase of the property will be the responsibility of the seller, while payments due after the purchase will be the responsibility of the new owners, John and Mary.
Practical Application
Returning to the story of John and Mary, let's assume that the derrama was approved by the community prior to the sale and that the monthly payments began before they purchased the home. If they bought the house in June and the payments started in January, the payments from January to May would be the responsibility of the seller, while the payments from June onwards would be the responsibility of John and Mary.
John and Mary, now more informed, can proceed with their purchase knowing exactly where they stand. With Gracia Real Estate, the whole process has been transparent and they have reached a fair agreement for both parties. In the end, the most important thing is that they can enjoy their new home without any additional worries.