Horizontal property

The Supreme Court (TS) clarifies that the reform of the Horizontal Property Law regarding community debts does apply if a flat is purchased after its entry into force, even if the debts are prior to the sale. The story begins when a neighborhood community sues the new owners of 13 accommodations for not paying some fees. The buyers argued that they only owed the most recent ones, because the law changed in 2013 and they thought it should not affect them for old debts.

In first instance, the court sided with the community, stating that the new owners did have to pay up to the previous three years, according to the new regulations. However, on appeal, the Provincial Court partially agreed with them, eliminating the debt from 2011, considering it unfair to apply a new law retroactively.

The community did not agree and appealed to the Supreme Court, which has ruled that, if the purchase was made after the reform (from 2013 onwards), the buyer is responsible for the debts of the current year and the previous three, even if these debts existed before. The important thing is not when the debt originated, but when the property is purchased. According to the Court, this way of applying it is not strictly retroactive because it only affects those who buy after the reform, who already know what they are exposed to. This resolves the issue of how far the "inheritance" of community debts goes when buying a house.

If you find yourself in a similar situation, our professionals can analyze your case and take the most appropriate actions in defense of your rights.