A derrama (special levy) is an extra contribution the owners' meeting shares out among the owners to pay for a specific cost the ordinary budget does not cover, usually building works or a major repair. It is split according to each flat's or premises' share (cuota de participación), unless the title deed or the bylaws say otherwise.
In practice
The owners' meeting approves the works, their budget and the levy: how much each owner pays and by when. Make the agenda item clear, for example "approval of the roof repair budget and the corresponding levy", as in our meeting notice template.
It depends on the kind of works:
| Works | What the meeting decides | Who pays |
|---|---|---|
| Mandatory: upkeep, safety, habitability or accessibility under article 10.1 | Only how the levy is split and paid | All owners |
| Non-essential improvement, approved by three fifths | Whether to do it | If the installation share exceeds three months of ordinary charges, an owner who voted against is not bound |
Many levies follow inspections that leave defects to fix: see mandatory building inspections. The reserve fund, which must be at least 10% of the last ordinary budget, exists to pay for upkeep, repair and refurbishment works, and can reduce what needs to be raised.
What if the flat is sold? For levies to pay for improvements, the law is clear: whoever owns the property when the amounts fall due pays them. On a sale, the seller must state in the deed whether they are up to date with the community and provide a certificate of debts, which the secretary issues within seven calendar days at most.
An unpaid levy is a debt to the community like any other: the owner in arrears loses their vote until they pay and can be pursued through the payment order procedure, which covers both ordinary and extraordinary charges.
What the law says
- Article 9.1.e of the Horizontal Property Act. Each owner contributes to general expenses according to their share or what has been specially agreed; it also covers the certificate of debts on a sale.
- Article 9.1.f. Reserve fund, at least 10% of the last ordinary budget.
- Article 10.2.a. For mandatory works, the meeting's resolution is limited "a la distribución de la derrama pertinente y a la determinación de los términos de su abono" (to splitting the levy and setting the payment terms), and the properties are bound to its payment (10.2.c).
- Article 14.c. The meeting approves budgets and repair works, ordinary or extraordinary.
- Article 17.4. Non-required improvements and the dissenting owner.
- Article 17.11. "Las derramas para el pago de mejoras realizadas o por realizar en el inmueble serán a cargo de quien sea propietario en el momento de la exigibilidad" (levies for improvements are paid by whoever is the owner when they fall due).
- Article 21.2. The community can claim common charges "tanto si son ordinarios como extraordinarios" (whether ordinary or extraordinary).
Common mistakes
- Approving works without payment dates. Without dates, it is hard to say when someone is in arrears.
- Approving the levy under "any other business". It needs its own agenda item.
- Charging an improvement to an owner who voted against when the law exempts them.
Sources
- Law 49/1960, Horizontal Property Act, arts. 9, 10, 14, 17 and 21.
- Law 1/2000, Civil Procedure Act, art. 812.