9 Millon Euros owed on Community Fees by the Banks just in Malaga Province
According to the Consejo General de Administradores de Fincas de España (Board of Property Administrators), most of the building maintenance are at risk as a result of unpaid community fees belonging to homes repossessed by the banks.
The condition of many blocks of flats and urbanizations could be in danger as many communities are unable to afford the general running and maintenance cost with the existing resident´s payments alone.
They are also estimating that banks are not paying community fees for around 4,000 properties, reaching an average debt of €2,000 per property.
In order to reduce expenses, some communities even after increasing the monthly quota, have had to cut down on services such as maintenance, cleaning, lighting and gardening.
It has also been noticed that there are banks which try to avoid paying the community fees by delaying the inscription of change of ownership on the Property Register for as long as possible. The bank does not register the property until it has been sold to a new owner, during that period of time, the administrator has no knowledge who is the legal owner, and cannot take the bank to court and proceed with legal actions. It can also happen that the new owners then find themselves with the debt which the bank did not pay. Banks only pay off the debt when they are notified of legal action.
The Horizontal Property law states that a property buyer has to pay outstanding community fees from the current and previous year. Usually a repossessed house or flat is in debt with the community; if the owners couldn’t afford their mortgage it is very unlikely they would have paid their outstanding community fees.