The Horizontal Property Act: what every owner should know

The LPH establishes three main bodies: the general assembly (junta de propietarios), the president, and the administrator. Each has defined functions. The assembly is the supreme decision-making body. The president represents the community legally. The administrator handles day-to-day management.

The annual ordinary assembly must be held at least once a year to approve accounts and budgets. Extraordinary assemblies can be called by the president or by owners representing a quarter of the total participation quotas. Voting thresholds vary by decision type: simple majority, three-fifths majority, or unanimity.

Each property in a community has a participation quota (coeficiente de participación) expressed as a percentage. This quota determines how ordinary expenses and special assessments are distributed among owners. It also determines the weight of each owner's vote in assemblies.

Communities are legally required to maintain a reserve fund (fondo de reserva) equivalent to a minimum percentage of their annual ordinary budget. This fund is designated for extraordinary repairs and maintenance. Understanding the reserve fund's current level is a key part of reading annual accounts.

The administrador de fincas is responsible for executing assembly agreements, managing community finances, maintaining accounts, preparing budgets, and advising the president. The LPH specifies what the administrator must do — understanding this helps owners evaluate whether their administrator is fulfilling their obligations.

All owners are obliged to contribute to community expenses in proportion to their quota. Owners in arrears (morosos) can be pursued through a simplified legal process (monitorio). Non-payment does not remove the right to vote in assemblies, but it does have other consequences under the LPH.