Let’s Rip Off the Holiday Brochure Filter
Here’s the rude truth: when you buy in Spain, you’re not just buying walls and a view. You’re buying a share of a small democracy with opinions, budgets, and appetites. It’s called the comunidad de propietarios (owners association), and it will touch your money, your schedule, and your peace.
Meet Nick, Manchester expat. He fell for a sea-view apartment near Dénia. The agent said “community fees are just 70€ a month.” He signed. In his first ninety days, he got a 1,800€ special assessment to “fix façade damage” that everyone else knew about since last summer’s Junta. Then a 400€ “recalculation” for water. And three sleepless weekends thanks to the upstairs Airbnb—perfectly legal under the rules he never read.
If you don’t read the minutes, you’ve agreed to whatever they agreed last year.
Still think you’re buying privacy? You’re buying neighbours. And some of them have a lawyer for a cousin and a talent for voting.
The Typical Costa Blanca Trap (And Why You Might Walk Right Into It)
What most expat buyers do
You find The One in Altea, Oliva or Xaló. The terrace gives you goosebumps. The agent waves a laminated budget: “Look, fees are low.” You ask about the pool, the lift, the parking gate. They nod. You assume “low fees” equals “no problems.” You rush the notary date because the flight back to the UK is on Monday.
Nobody told you that in Spain the HOA Spain debt sticks to the apartment. Under the Ley de Propiedad Horizontal (LPH), the property responds for the current year and the previous three years of unpaid community fees. If the seller is behind, that risk is walking straight into your wallet unless you catch it at due diligence—before you sign.
The quiet costs that don’t fit in the brochure
- Community fees Spain vs IBI: Your monthly community fees are not your property tax (IBI). They’re separate. Both want paying. Neither cares about your beach day.
- Reserve fund mirages: A “reserve fund” under 10% of annual budget is not comfort—it’s a flashing red light for emergency “derrama” (special levy).
- Big-ticket time bombs: Elevators, façade waterproofing, garage ventilation, pool compliance, roof membranes, and building inspections (ITE/IEE in the Valencian Community for 50+ year-old buildings).
- Short-term rental rules: A 3/5 majority can limit holiday lets and even add up to 20% fee surcharge to those units. If you plan to rent, rules matter. If you don’t, rules still matter—because noise travels.
The Blind Spot That Costs You Thousands
The real problem isn’t “high fees.” It’s low visibility. Buyers obsess over price per square meter and forget the governance and maintenance health of the building. You want a view; you need the paperwork.
Another blind spot: thinking the administrator works for you. They don’t. The administrador de fincas answers to the community, not to you. If you want a full picture—arrears, litigation, pending works—you must ask for the right documents, read them in context, and, yes, push a little.
Ignore This and Your “Dream Home” Turns Into a Cash Shredder
What happens if you keep winging it
You complete. The notary smiles. Champagne cork. Two weeks later: a letter about “urgent garage extraction fans” that need replacing to pass inspection. 2,400€ “your share.” Surprise. The façade rehab isn’t cosmetic; it’s structural. Add 6,000€. The pool? Needs a lifeguard in July–August under local rules—there goes another few hundred a year. And the lift maintenance just got indexed to CPI.
Now picture the meetings: fourteen owners arguing about dogs, solar panels, and who left the gate open. You can’t follow because the minutes are in Spanish legalese. You stop going. Decisions keep happening without you. Budgets creep up. Your “cheap” apartment is now a monthly second mortgage to your neighbours.
The Flip: You Don’t Have to Fall in Love Blind
Here’s the shift. Buying an apartment is not just conveyancing; it’s community due diligence. Treat the HOA like you would a company you’re investing in. You want the accounts, the forecasts, the risks, the lawsuits, the governance minutes, the rulebook. Anything less is gambling with a loaded deck.
We’ve helped hundreds of expats on the Costa Blanca avoid this. When you make the HOA part of your pre-contract checks, three things happen: you negotiate better, you sleep better, and you stop paying for other people’s procrastination.
What Your Life Looks Like When You Buy With Community Control
You receive the keys and already know the next AGM dates, who the president is, and what motions are up for vote. Your budget includes realistic community fees plus a buffer for known projects. You’ve inserted a retainer clause so any “ghost” debt stays with the seller. You have English translations of the estatutos and rules, with clean summaries so you won’t get ambushed by a “no barbecues” policy mid-summer.
When the administrator tries to push through a vague “urgent repair,” you ask for the technical report and three quotes. People stop mistaking you for an easy target. That feels good.
Your HOA Due Diligence Game Plan (Steal This)
Documents to demand before you commit
Ask for these from the seller and the community administrator. No documents, no deal. Full stop.
- Debt Certificate (certificado de deudas) under LPH art. 9. Signed by the administrator and president. Confirms if the unit is up to date on community fees Spain and special assessments.
- Last 3 AGM/EGM minutes (actas) including attendance, votes, budgets, and approved works. Look for pending “derrama,” litigation, and maintenance contracts.
- Annual budgets and actuals (last 2 years) plus current year-to-date. Compare budget vs spend. Chronic overspend = future fee hikes.
- Arrears report (% of owners in debt). Over 10% morosity? Prepare for cash calls or services cutbacks.
- Reserve fund balance and bank statements. Anything under 10% of annual budget is weak; under 5% is a siren.
- Insurance policy and claims history. Check building coverage, water damage claims, and deductibles.
- Maintenance contracts (lift, pool, cleaning, gate, fire systems), including expiry and CPI clauses.
- Technical reports: ITE/IEE (for older buildings), façade and roof assessments, garage ventilation compliance.
- Litigation summary with lawyers’ letters or court filings. Ongoing disputes = delayed works and legal costs.
- Rules (estatutos + normas de régimen interior): pets, short-term rentals, noise, exclusive-use terraces, solar, EV chargers.
How to read the signals like a pro
- Low fees ≠ good management. Sometimes it means they’re postponing inevitable works.
- “Approved in principle” is code for “we’ll bill you when the quote lands.” Treat it as a real liability.
- 3/5 majority power: Communities can limit holiday lets and add a surcharge up to 20% for those units. If you plan to host, confirm before you buy.
- Accessibility and energy upgrades often pass with lower majorities now. Translation: higher likelihood of works in 2025–2026.
- Valencian ITE/IEE: If the building is 50+ years old, see if the inspection is done and what it found in Gandía, Dénia, Altea and nearby towns.
Protect yourself in the contract
Stop leaving money on the table. Use your leverage before you sign the private purchase contract (arras):
- Condition precedent: Purchase subject to receiving and approving HOA documents within X days.
- Retention at completion: Hold back 1–5% in escrow for 90 days to cover hidden HOA liabilities or newly disclosed assessments.
- Seller to settle: Seller pays all approved works up to the date of signing, not just “issued” fees. Put it in writing.
- Clause for accurate disclosure: Misrepresentation about owners association Spain matters triggers price reduction or contract termination.
What We Do (So You Don’t Get Fleeced by Your Neighbours)
At Coast Law Firm we fold HOA due diligence into your conveyancing. We don’t just “check a box”; we interrogate the community like a forensic accountant with sandy shoes. Here’s how we help English-speaking expats buying in the Costa Blanca:
- Document hunt and translation: We get the actas, budgets, arrears, insurance, contracts, and rules. We translate the bits that matter and give you a plain-English risk score.
- Financial and technical red flags: We assess the reserve fund, upcoming works, ITE/IEE status, and morosity.
- Negotiation firepower: We insert protective clauses, arrange retentions, and coordinate with the notary (Notaría) so the debt certificate is on the table at signing.
- End-to-end handling: NIE, power of attorney, bank account, completion attendance, and Land Registry follow-up (Registro de la Propiedad).
- Local reach, multilingual team: Offices and meeting points around Gandía, Oliva, Dénia, Xaló and Altea. We work in English, Spanish, French, German, and Dutch.
- Transparent fees: Fixed-fee packages for conveyancing and wills, with clear timelines and checklists.
In 2025, community energy costs, accessibility mandates, and building inspections are pushing budgets up. That’s not a reason to panic. It’s a reason to prepare—with eyes open and pen loaded.
Mini Case: The 9,300€ You Don’t Pay
Client couple from the Netherlands eye a 2-bed in Altea. Administrator “couldn’t locate” the last EGM minutes. We insisted. Hidden inside: a passed motion for façade anchors and roof waterproofing—estimated at 180,000€ community-wide. Their share: 9,300€. We negotiated a 9,300€ price reduction and a 2% completion retention. Client completed. Works started six months later. Zero surprises. That’s the point.
Ready to Stop Buying Blind?
This is where you choose. You can buy the postcard and hope the neighbours are kind. Or you can buy the property plus control over the community variables that actually cost money and sleep.
Next steps:
- Request our HOA due diligence checklist and a fixed-fee quote for your purchase.
- Send us the building address and any documents you’ve got; we’ll tell you what’s missing and what it means.
- Book a free initial consultation to map exact risks and protection clauses tailored to your unit.
Contact Coast Law Firm and let’s make sure you don’t fund your neighbours’ overdue chores. Buy the home you want—without inheriting the problems you don’t.