Discover how a homeowners’ association should act when faced with a debt of more than five years, how to approve the settlement, apply interest, attempt a mediation process, and claim through a summary proceeding.
Delinquency in homeowners’ associations is one of the most fraught problems in community life. When a delinquent owner accumulates a debt to the association for more than five years, the solution can no longer be improvised: it requires a clear legal strategy, well-defined agreements, and rigorous procedures from the outset.
In these cases, the community should rely on the Horizontal Property Law, the Civil Code, the Civil Procedure Law, and Organic Law 1/2025, which introduces the requirement of using Alternative Dispute Resolution (ADR) procedures before resorting to legal action. A well-prepared claim not only improves the chances of recovery but also reduces the risk of challenges, annulments, or unnecessary delays.
Prior verification of the debt
Before taking any action, the community must accurately determine the amount owed. A lump sum is not enough: it is necessary to itemize regular fees, approved special assessments, contributions to the reserve fund, individual expenses, and interest, if applicable.
The debt must be liquidated, due, determined, and payable—essential requirements for initiating summary proceedings. Furthermore, if the debt has accumulated for more than five years, it is advisable to review whether any portion is subject to the statute of limitations or whether the amount recoverable needs to be adjusted before adopting the community agreement.
Agreement at meeting and agenda
The Horizontal Property Law requires that the community approve the debt at a meeting and that this matter be expressly included on the agenda. It is not advisable to use generic wording: the meeting notice must clearly identify the defaulting owner, the exact amount of the debt, the period to which it corresponds, and the intention to pursue legal action if it is not paid voluntarily.
The agreement must expressly include:
- The approval of the debt settlement.
- The authorization to file a lawsuit.
- The appointment of a lawyer and solicitor, if applicable.
- The president’s authority to sign the necessary documentation.
Precise wording of the agreement is essential to avoid challenges based on formal defects and to strengthen the community’s procedural position.
Interest on the debt
The claim is not necessarily limited to the principal amount. The Civil Code and the Horizontal Property Law allow for the claim of interest from the moment the payment obligation became due and was not met.
Therefore, the community can agree at a meeting on the method for calculating interest on community debt, always within legal limits and ensuring the amount is not excessive. If the bylaws or prior agreements already stipulate a specific interest rate, that will be the applicable rate; otherwise, the legal interest or the rate specified in the approved settlement can be claimed.
Clearly establishing this point from the beginning avoids later arguments and strengthens the claim.
MASC and confidential binding offer
One of the most significant changes introduced by Organic Law 1/2025 is the requirement to first attempt an Alternative Dispute Resolution (ADR) procedure before resorting to legal action, as a procedural prerequisite. In claims for community debts, this preliminary step can be implemented, among other methods, through a confidential binding offer.
This process should not be treated as a mere formality. The community must be able to demonstrate that it offered a genuine solution to the conflict before filing a lawsuit. The binding offer must be sent in a way that provides proof of the sender’s identity, the debtor’s receipt, the date of receipt, and the content of the proposal. If the defaulting owner does not accept the offer or does not respond within the established timeframe, legal action will be available.
In practice, properly documenting this step is essential to ensure that the claim does not encounter admissibility objections.
Required documentation
To successfully file a summary judgment procedure, the community must have a complete and organized file. The Horizontal Property Law requires providing a certificate of the debt settlement agreement, endorsed by the president, along with the minutes of the meeting and a breakdown of the amounts claimed.
In addition, it is advisable to gather:
- Unpaid bills.
- Proof of notification to the defaulting owner.
- The documentation relating to the MASC or the confidential binding offer.
- Prior payment requirements, if any.
- The express authorization to initiate legal action.
The more complete the documentation, the stronger the community’s position and the smaller the debtor’s margin of opposition.
What does the monitoring procedure consist of?
The summary proceedings for the recovery of outstanding monetary debts are a fast-track legal process provided for in the Spanish Civil Procedure Law. In matters of horizontal property ownership, the Horizontal Property Law also includes a special regime that facilitates the recovery of fees from defaulting owners.
Once the initial petition is filed, the court orders the debtor to pay. From that point, the owner can pay, fail to appear, or file an objection. If they pay, the proceedings conclude. If they fail to appear, the community can continue with the enforcement. If they object, the matter will become the appropriate declaratory proceeding based on the amount in dispute.
That is why it is so important to arrive at the court with the debt properly approved, with the complete documentation and with the previous attempt at MASC duly accredited.
Steps the community should follow
Before going to court, the homeowners’ association must follow an orderly sequence:
- Review the community debt and calculate it correctly.
- Include debt approval on the agenda.
- Authorize the collection of fees and, where appropriate, the appointment of a lawyer and solicitor.
- Attempt a MASC or submit a confidential binding offer.
- To prove that prior attempt at an out-of-court settlement.
- Certify the agreement with the president’s approval.
- Submit the monitoring procedure with all the necessary documentation.
Following this legal process not only improves the effectiveness of the claim, but also conveys security, seriousness and good administration to the community.
A safer and more effective claim
Delinquency in a homeowners’ association requires a response, but a well-structured one. The combination of the Horizontal Property Law, the Civil Code, the Civil Procedure Law, and Organic Law 1/2025 allows the association to pursue a rigorous claim, demand interest, attempt a prior Alternative Dispute Resolution (ADR) procedure, and resort to summary proceedings with greater guarantees.
When agreements are well drafted, the debt is properly documented, and the legal strategy is designed from the outset with professional advice, the collection of fees becomes a much more effective tool for protecting the common interest.
At Fernández-Fígares & Asociados, the legal approach is not limited to claiming a debt: it consists of preparing each step with precision to maximize legal certainty and the probability of success.