How many houses are necessary to form a community of owners

When a community of owners must be formed

According to the article 13.8 of the LPH, when a building or property has a maximum of four owners, there is the possibility that a community of owners subject to the Horizontal Property Law (LPH). In these cases, the owners can avail themselves of the administration system provided for in < a cmp-ltrk="[Article] Inline paragraph" cmp-ltrk-idx="2" data-mrf-link="https://www.boe.es/buscar/act.php?id=BOE-A-1889-4763#art398" href="https://www.boe.es/buscar/act.php?id=BOE-A-1889-4763#art398" mrfobservableid="66a4c02e-e5e2-4a7f-9cb6-44328a4ef87d" target="_blank">article 398 of the Civil Code, provided that this is expressly reflected in the statutes.

Under the latter formula, the owners act as co-sharers in a common good and decisions must be taken by majority. If disagreements arise that cannot be resolved internally, it will be necessary to go to court to determine the corresponding solution. This model is usually used in small buildings with few neighbours and a simple management structure.

From five owners it must be constituted

When there are five or more owners, it is usual and advisable to set up a community of owners. Although the regulations do not expressly establish an obligation in all cases, the community facilitates internal organisation, economic management and decision-making on common areas and shared services.

In the event of a conflict between the owners regarding its constitution, any interested party may request the creation of the community in court to properly regulate the operation of the property or property.

Options in multi-building complexes

In those real estate complexes or estates or urbanisations made up of several plots or independent buildings that share common elements, the law contemplates different forms of organisation.

Owners can choose to create a single community of owners that manages the entire complex or to constitute several independent communities later grouped into a common entity. This second option is usually used in large housing estates or residential complexes with different blocks.

When none of these formulas is adopted, the relations between co-owners continue to be regulated by the private agreements reached, applying the provisions of the LPH in a complementary way.

Minimum number of residents required

For a community of owners to exist, it is sufficient that there are two independent properties – homes, premises or plots – that share indivisible common elements, such as stairs, roofs, portals, lifts or general facilities.

Therefore, it is possible to set up a community made up of only two owners. However, in this case it is not mandatory to formalize it either, although it may be convenient to organize expenses, repairs and common responsibilities.

How much does it cost to create a community of neighbors

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The price depends on several factors, but it is usually between 100 and 300 euros. This amount usually includes expenses such as the acquisition and legalisation of the minute book, the corresponding documentary registration and certain procedures before the Land Registry.

The final figure can increase if legal advice is required, specific statutes are drawn up or a property administrator is hired to start the community.

Advantages of setting up a community of owners

• Better organisation and distribution of responsibilities: it allows rules to be established on the use of common areas, the distribution of expenses and the obligations of each neighbour, reducing conflicts and facilitating coexistence.
• Greater economic control: it makes it possible to have common accounts, annual budgets and reserve funds for repairs or unforeseen events, in addition to managing spills and payments in an orderly manner.
• Ease of contracting services: the joint contracting of cleaning, maintenance, insurance, elevators or property administration simplifies management and can reduce costs.
• Greater legal certainty: having statutes, minutes and rules provides legal support in the event of conflicts between owners or external claims.
• Better conservation of the property: organised management favours the carrying out of repairs and improvements, helping to maintain and enhance the value of the building.

Disadvantages 

• Periodic expenses: it involves assuming community fees, insurance, maintenance and, in some cases, property administrators' fees.
• Possible neighbourhood conflicts: shared decisions can generate disagreements, especially on economic issues or in the approval of works and spills.
• Greater administrative burden: the community must convene meetings, write minutes, keep accounts and comply with legal procedures.
• Reliance on collective agreements: Some important decisions require specific majorities or unanimity, which can delay necessary actions when there is no consensus among owners.

Steps to create a community of neighbors

1. Granting of the constitutive title: generally, it is carried out by the developer before a notary, through the deed of horizontal division. If the building already exists and does not have this title, the owners can grant it by mutual agreement.
2. Registration in the Land Registry: increases legal certainty
3. Convocation of the constituent meeting: In this meeting, the internal regulations are approved (if desired), the president and, where appropriate, the administrator are elected.
4. Obtaining the NIF of the community: Necessary to open bank accounts and contract services on behalf of the community.
5. Bank account opening: For the management of common funds and the payment of collective expenses.