In many homeowners’ associations, questions arise about how to act when residents fail to meet their obligations. Noise, loud music, and parties late at night. Improper use and untidiness in common areas. Failure to pay the community fees. A common question we often receive at our law firm is whether the homeowners’ association can impose economic sanctions against neighbours who fail to comply with their obligations. In this week’s article, we explain what the law says, the legal steps that can be taken, and how our firm can help homeowners protect their rights.
What the Horizontal Property Law Says About Economic Sanctions.
Under the Horizontal Property Law (HPL), homeowners’ associations do not have the power to impose economic sanctions on owners for breaching internal rules. This means that unilateral “fines” approved in a general or extraordinary meeting have no legal backing and are therefore invalid. Even if the association’s bylaws provide for economic sanctions, this provision would not have legal effect, as the law does not allow it.
Court rulings are also clear: the community of owners may only claim what is legally owed, such as unpaid fees, but cannot impose arbitrary sanctions for other breaches. However, certain behaviours, such as noise that violates the municipal coexistence ordinance, can lead to economic sanctions imposed by the Town Hall.
The Cessation Action: The Correct Legal Route.
Noise late at night, untidiness in common areas, etc. Does this mean homeowners have no tools to defend themselves against noncompliant neighbours? Absolutely not.
When a neighbour fails to meet their obligations, the legal tool provided by the Horizontal Property Law is the cessation action. Regulated in Article 7.2 of the HPL, this action requires the owner to stop the noncompliant behaviour. If they fail to do so, the community, via a board resolution, can go to court. If the court rules in favour, it will order the immediate cessation of the breach and, in severe and persistent cases, may temporarily limit the use of the property. This route protects community life and ensures that measures have legal backing.
Are Any Economic Sanctions Against Noncompliant Neighbours Allowed?
The only legally permitted exception concerns arrears in paying the community fees. The HPL allows the association to claim in court unpaid amounts and charge late payment interest (even above the statutory interest as a deterrent). Additionally, Article 17.12 allows increasing fees for owners of tourist properties (though this is not considered a sanction per se). Outside of these cases, any attempt to impose economic sanctions against neighbours is legally unsupported and may be challenged.
Conclusion.
Conflicts in homeowners’ associations are common. At White Baos Lawyers, we are experts in horizontal property law and can advise your community on any situation involving breaches of rules or disputes between neighbours. If your community faces problems, contact us for specialized legal advice.
The information provided in this article is not intended to be legal advice but merely conveys information relating to legal issues.
Carlos Baos (Lawyer)
White & Baos.
Tel: +34 966 426 185
E-mail: info@white-baos.com
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