Did you know that if you waive the declaration of condominium charges when buying a second-hand home, any outstanding debts to the condominium from the seller become your responsibility?
Yes, they do. Therefore, make sure not to waive the presentation of this declaration during the signing of the deed.
But what document are we talking about? What does it contain, and why is it important not to waive it? Let us explain.
The Declaration of Condominium Charges Has Existed Since 2022
With the enactment of Law 8/2022, the declaration of condominium charges became a mandatory document for the sale or donation of individual units.
Its issuance is now the responsibility of the condominium administrator and includes not only details of the charges related to the condominium but also whether there are any outstanding debts to the condominium by the current owner. If debts exist, the declaration specifies the details.
Is It Mandatory for Selling or Donating an Individual Unit?
Aimed at ensuring that the buyer of the unit fully understands the costs they will incur with the condominium, this declaration provides:
- The monthly charges for the condominium, including regular fees or contributions to the reserve fund
- The amount of any special fees for maintenance work or other expenses approved during condominium meetings
- The payment schedule for all charges
- Whether the current owner has any outstanding debts to the condominium, as well as the nature, amount, and due date of the unpaid charges.
The Seller Must Request This Declaration
The property seller must request the issuance of this document from the condominium administrator, who has ten days to provide it.
The seller then needs to deliver the declaration to the buyer or the real estate agency managing the sale, so it can be presented during the signing of the deed (or donation) alongside other mandatory documents.
Debts Incurred Before the Sale Are Not the Buyer’s Responsibility
According to Article 1424-A of the Civil Code (amended by Law 8/2022), the responsibility for paying existing debts is determined by the due date of the charges.
In other words, the payment of condominium fees or other expenses, such as repairs to common areas, must be detailed in the written declaration issued by the condominium administrator. If the payment dates precede the transaction date, the debt belongs to the property seller. Amounts due after the transaction date are the buyer’s responsibility.
This is particularly important for amounts approved at condominium meetings where payment dates fall after the transaction date. In such cases, since the buyer is responsible, they have the right to know these costs before finalizing the deal.
Waiving the Declaration Means Assuming Pre-existing Debts
This is a crucial point for homebuyers.
For the sale (or donation) transaction to proceed, whether through a public deed or an authenticated private document, the presentation of the declaration of condominium charges is mandatory. However, if at the time of signing, the buyer expressly declares that they waive this requirement, the document is not necessary.
By waiving the declaration, the buyer not only facilitates the transaction but also implicitly accepts any outstanding condominium debts that would otherwise be the seller’s responsibility. This means the buyer must pay those debts. Therefore, be cautious if you decide to waive this declaration.
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