Why to establish the owners' Community? What is the Constituive Act?

1. The Owners' Community: the key point towards the access to basic services.

To constitute a Community of Owners protects your rights better than not to do it. Nevertheless, when in a conversation appears the term 'Owners community' (from now on OC) it causes tension on people's faces because they have two drawbacks:

• The obligation to pay: thus each co-owner, according to his share quota, contributes to his budget and the OC in general has to pay taxes. 
• The Presidency, an institution that many people wish to avoid: Be the OC president implies, at least, attending the meetings when we would like to rest. An element that adds pressure to this obligation is that the President acts as the natural person legally representing the Owners' Community , is also the person authorized to hire with third parties. When the position is exercised, it is necessary to be careful not to incur in crimes (the most frequent are the abandonment of functions and misappropriation). 

These aspects are 'little appreciated' are overcome by the advances of the Community of Property Owners and findings such as the following: not having an OC means depriving ourselves, as residents, of basic services for safety and health or a good coexistence.

I understand that if I live in the building, the non-constitution of the OC is convenient to me, but, if I am only a company legal representative with a parking lot located in the building - and I don't live there - I don't see how not having the OC constituted affects me? Think about it this way: if there are an electricity supply problem on the parking lot, the lack of this legal figure means that no one can be hired to fix them, with the consequent prejudice for your firm.  

2. What are the main tasks of a Community of Owners? Do you want to know how to set one up step by step?

The first step is that the OC has a Tax Identification Number (henceforth NIF according to Spanish acronym) with it the Administration -and the supplying companies- will be able to verify our address and that the OC satisfies taxes -invoices in the case of the supplying companies-.

With the NIF the main tasks and services to which an OC has access are:

.a) To register the supplies: Specially, when our building is located in a street corner, when it is contacted telephonically with the company subministradora you have to check that you give them correctly your address. 

b) Approve the budget: this allows you to contract services, external workers and works. These works can be maintenance, improvement or eventual adaptation of the common areas. In accordance with the laws in force it is very important to bear in mind this last aspect: an OC is a space where the Administration can dictate laws, for example, in the supposition that you are reading us from a building build after 1996 we inform you that it is compulsory to install fire extinguishers. 

c) To constitute the Board of Owners: The first to designate to the meeting are its organic charges we refer to the President, the Vice-president and the Secretary. This is a space of debate, complaint, but, also with capacity of proposal and to make practical actions that improve the life of the co-owners. This is where the professional profile of the Property Manager comes into play, who advises the members of the OC and acts as a dike against potential conflicts between the co-owners: let's get down to work and bet on our administrators

d) Approve Regulations: to clearly established what is allowed in the OC and what is forbidden.

Do you want to know how to set up the OC in accordance with the law? Click on this link: we have the article you need. We remind you that the quorum required at the first call is half of the owners and also a half of participation quotas.
 

3. Why are the Articles of Incorporation of the PC important? What points must always appear in the Articles of Incorporation?

Because without the Constitutive Act of the OC it cannot be born. The Constitutive Act is a legal document validated by the Land Registry.

3.1 The following must appear compulsorily in the Constuitutive Act (hereinafter CA):

a) Description of the building: with the common elements and also those that are private. Attention must specify: the name of the community, the exact address of the building or group of properties.

b) Participation Quota and spaces or rights attached to them: Describe each private unit, indicating its surface area and specific characteristics. By quota of participation is understood: the percentage that corresponds to each owner of the total value of the building and of the common elements.

c) Legal nature of the OC: It determines the type of community of the building -horizontal or vertical-.

d) Governing bodies of the Community and their decision-making: The form of governance of the community is established. This must always have:

- Board of owners

- President, Vice-president and Secretary. Regarding these the Act makes explicit:

• Their functions
• Election procedures
• Frequency of the meetings

As important as setting in motion the governing bodies of the PC is to establish the procedures for the adoption of the agreements at the Meeting of Owners. Without these two successive steps, no decision of the PC can be executed.

e) Modification of the Constitutive Act: It details how modifications can be made to the CA, generally requiring a qualified majority of the owners.

3.2 Optionally, the Articles of Incorporation may include:

(a) The Statutes of the OC: This document this legal document, which must be registered in the Land Registry, governs the rules of coexistence within the community and the common areas.

b) The Internal Regulations, which do not have to be registered in the Land Registry, governs the proper use of the services and common elements.

With this article you have discovered the great usefulness of a CP. Next week we will detail what can contain the Statutes and the Regulations of the OC.