Community debtors

[wishing]

Our community is in danger of becoming bankrupt! There are so many owners who have not paid their community fees the administrators are resigning. What can be done? Surely there must be some way to make these people pay?

Does anyone out there know?

Our commitee does "naming and shaming" and they then get solicitor's letters.
Finally they get taken to court although I've not heard of anyone getting this far.
I think paying the charges is a legal requirement, not just a club rule.

[Doc]

My community has 66 property owners. There were (I think) four who had not paid their charges as at the last AGM. The meeting voted for legal action against the non-payers. I would suggest that yours does the same. Although such action incurs additional cost, it acts as a deterrent against those thinking of not paying in the future. If they know that they will be taken to court they are more likely to pay - conversely if they know that no action will be taken against them for non-payment what's the point in paying?

If the AGM is a long way away, consider calling an Extraordinary AGM to pass the relevant motion.

Chris.

[spark240]

What reasons do these people give for not paying ?Are they residents or holiday homes ? Stop them using the access road or something.

[wishing]

Debtors

Thanks for all your replies. Around 38% of owners have fees outstanding - some over 3 years! They are mainly holiday homes and a real mix of nationalities.

The AGM is coming up in a couple of weeks and we will be there to see what's going on and what they propose to do. They have been 'naming & shaming' for the past eighteen months (that's when we bought our property) and the debts have increased by 340% in the past year!

I don't know what other people think, but although I'd love to be involved more in the running of the community it's difficult when you're only out there a few times a year. However we can still make our presence felt at the AGM.

[AndyH]

Our community 'names and shames' in the AGM newsletter and then again in the mid-year update, with the added comment that persistant debtors will have legal proceedings undertaken against them for seizure of their property to settle unpaid debts. This usually works, but you have to be prepared to take on those that simply refuse to pay. Community law does allow for seizure and this should be pointed out to people who don't make the required arrangements for payment.

Good Luck.

[Trevorjo87]

I think you will find any charges can be passed on to the debtor

Debts

With 38% not paying community fees its likely they are not paying Spanish taxes. You could find the authorities could do the job for you. Otherwise ( and I am far from being an expert) I wonder if it is possible in Spain to sell a debt to a collection agency at a discount and let them recover whats due.Why dont you ask the legal section

[Brian]

Non payment

When you hold the AGM, please don't forget that debtors, whilst they may attend the AGM and speak, are not entitled to caste a vote. Your administrator should therefore ensure he/she attends the AGM with an updated list of such debtors.
You should remember that only 2 fiscal years of community charges debts are legally recoverable, UNLESS you can show to any subsequent court that you have been actively pursuing the debt for a greater period.
Has your administrator not advised on legal actions that may be taken.?

One recommendation which we used on the urbanisation I live is simplistic. Every time a property goes up for sale, or rent, check it on the debtors list, and if it is contained thereon phone the number on the Se Vende sign and advise the selling agent of the debt and futher advise that unless the debt is paid in full within a stated period, the comunity will seek a hold on the property. For some strange reason this seemed to work quite well on my unrbanisation.!!

[Ashley]

Debt

Can some one tell me what the community charge is all about as not heard of it. We are not living in Spain till late next year but will be on a limited income. Is it possible that others already living among you were also unaware of these charges. Is it like our council tax?

[spark240]

The charge covers costs to maintain the pools, grounds, lighting etc.

[morbob]

Any idea what the average community charge is? Presumably it is paid in advance?

[Lizzy]

debtors

why not ask the legal questions on the legal forum on this site?

[beastess]

Ours is 300 a year paid half yearly in advance. I think this is fairly typical.

[morbob]

Thanks Beastess