Horizontal Property Law: common expenses, retroactivity and payment obligation
The publication of a recent ruling on retroactivity in the obligation to pay common expenses owed by a third party once again brings to the forefront the wording of the Horizontal Property Law (LPH). This regulation, essential in the governance of homeowner communities, clearly establishes the financial obligations of the purchaser of a property with respect to previous debts with the community.
At Carlos Baño Abogados we explain in a clear and practical way what this law entails, how it affects buyers, and what legal consequences arise from its application, especially in cases of property transfer with outstanding charges.
The buyer’s liability under the LPH
The liability of the purchaser of a property regarding common expenses owed by previous owners has always been contemplated in the Horizontal Property Law. This regulation establishes that certain credits in favor of the community are preferential and that the properties may be subject to the payment of such debts.
What does “real lien” mean?
A real lien means that the property objectively responds to the payment of a debt, regardless of who its owner is. In other words, the debt is attached to the property, not to the person. Thus, when an owner sells their home without paying off the community debts, the new buyer may find themselves obliged to assume them.
Relation to other expenses: taxes and utilities
Just as properties are subject to the payment of taxes or charges such as basic utilities, they are also —by legal mandate— subject to the common expenses arising from community life. The law equates this category of debt with other fundamental obligations, thus giving it significant legal strength.
Obligation to inform in property sales
Currently, when formalizing a sale through a public deed, the law requires that the status of the property’s debts with the community be expressly stated. This requirement may be waived if agreed by the parties, but the usual and recommended practice is to demand this information.
The notary’s role and the administrator’s certificate
This regulation was introduced to resolve situations where the buyer was unaware that the property had debts with the community, which caused disputes after the purchase. To avoid this, the obligation to present a certificate from the property administrator certifying the property’s financial status regarding common expenses was introduced.
This certificate must match the seller’s statement, and its absence prevents the notary from authorizing the public deed, unless expressly waived by the buyer.
Usual practice in advised transactions
In the cases in which we act as legal advisors, we always require this certificate, as it provides legal certainty to the buyer. In this way, it is ensured that the debts will be paid by the seller before the transfer or, failing that, that the buyer assumes a known and negotiated burden.
Legal framework: article 9.1.e) of the LPH
This is established in article 9.1.e) of the Horizontal Property Law:
“In the public instrument by which the dwelling or premises is transferred, by any title, the transferor must declare that they are up to date in the payment of the general expenses of the community of owners or state the amount they owe. The transferor must provide at that time a certificate on the state of debts with the community consistent with their declaration, without which the granting of the public document may not be authorized, unless expressly waived from this obligation by the acquirer.”
Situation prior to Law 8/2013
Before the reform introduced by Law 8/2013, the regulation already contemplated that the purchaser was liable with the property itself for certain debts derived from the obligation to contribute to the upkeep of the general expenses of the community.
Time limits
Liability was limited to:
- The overdue portion of the year in which the acquisition took place.
- The immediately preceding calendar year.
These credits were considered preferential for the purposes of article 1923 of the Civil Code, having priority over others (except wage credits). This legal framework was the basis for many claims prior to the reform.
Purchaser’s liability
The law stated that even if the buyer had a registered title in the Property Registry, they were liable with the property for these debts. The flat or premises was legally subject to compliance, reinforcing the principle of real lien against third parties.
Changes after Law 8/2013
With the entry into force of Law 8/2013, article 9.1.e) was amended to extend both the purchaser’s liability and the preferential period for the community of owners.
New lien periods
Since June 28, 2013, the preference of the community’s credit and the purchaser’s objective liability extend to:
- The current year at the time of acquisition.
- The three preceding calendar years.
This change considerably increased the economic risk for buyers of properties under the horizontal property regime, making it even more relevant to obtain the debt certificate before signing.
Difference between privilege and real lien
It is essential to distinguish between:
- Real lien: the debt is attached to the property, without a time limit from the transfer. It does not expire on its own.
- Credit privilege: the community may have priority of collection over other creditors, but this preference is subject to deadlines and may expire if not recorded in the Registry.
Key date: the transfer
The decisive date for calculating the three years is the date of transfer. Regardless of when the claim is made, liability falls on the purchaser if the transaction took place after June 28, 2013.
Mortgages and prior seizures
If there are mortgages or prior seizures, these will only be effective insofar as they do not undermine the preferential community credit. Since the reform, this preference extends to a longer period, strengthening the community’s position against third parties.
DGRN’s criteria
The Directorate General of Registries and Notaries has reiterated that the lack of registry record of the claim may cause the community to lose its collection privilege against other creditors. Therefore, registry diligence is key to ensuring the collection of prior debts.
Controversy resolved by the Supreme Court
The Civil Chamber of the Supreme Court resolved through a ruling on May 20, 2025, an issue that had not previously been the subject of case law: the temporal applicability of the new article 9.1.e) to acquisitions after the reform.
Case background
A homeowners’ association claimed from the purchaser of a property the debt corresponding to the current year and the three preceding calendar years. The property had been acquired in October 2014.
The court of first instance ruled in favor of the community, but the Provincial Court partially upheld the buyer’s appeal and excluded the debt for the year 2011 and certain special assessments.
Appeal to the Supreme Court
The community filed an appeal alleging that the temporal application of the reform had been wrongly interpreted. The Supreme Court admitted the appeal due to the existence of cassational interest, as there was no previous case law on the matter.
Supreme Court doctrine
The High Court established that the application of article 9.1.e) as amended by Law 8/2013 is valid in cases of acquisitions after its entry into force. Consequently, the 2014 buyer had to assume the debt for the current year and the previous three.
The court ruled out prohibited retroactivity, applying the legal principle “tempus regit actum”, which states that each legal act is governed by the legislation in force at the time it is carried out.
Carlos Baño Abogados’ opinion
At Carlos Baño Abogados we warn that the 2013 reform significantly increased the buyer’s liability for community expenses. Therefore, it is essential to act with caution and knowledge before purchasing a property.
We recommend always requesting an updated certificate from the property administrator before signing the sale. This document allows you to know the debt status and, if necessary, negotiate its settlement with the seller before closing the transaction.
In our real estate law office, located in Alicante, we advise buyers, sellers and homeowners’ associations to ensure safe and smooth transactions.
You can find us on Google Maps or visit our website directly to request personalized advice.
