The Horizontal Property Law (HPL) in Spain establishes two specific legal actions for condominium owners associations (COA) under the Horizontal Property Regime:
- The action for an injunction against co-owners or nuisance occupiers
- The order for payment procedure against defaulting co-owners or occupiers
We now turn to the order for payment procedure.
What is the order for payment procedure in the field of COA?
The order for payment procedure is the simplified judicial means of claiming an amount foreseen in Law 1/2000 of 7 January 2000 on Civil Procedure (LCP). Thus, any creditor can resort to this procedure provided the amount is liquid, determined, due and payable (Art. 812 of the LCP).
Due to the particular features of the functioning of the COA, article 21 of the HPL establishes a specific payment order procedure for claiming ordinary expenses or participating in the reserve fund against defaulting owners.
Specific order for payment proceedings
- Before applying to the specific order for payment proceedings, the secretary of the community authorized by the president or, if applicable, a professional secretary administrator shall issue a certificate of the debt settlement agreement.
The certificate to deliver with the application must indicate:
- The amount of the debt and
- Its breakdown
- In addition, it is necessary to give prior notice to the debtor directly or by posting a notice on the notice board or any other visible place in the community.
Three days after the notification, the claim may be submitted together with a document certifying the prior notice to the debtor and the certificate referred to in the first point.
- Filing of the claim with the relevant court of first instance. The petition may include, in addition to the amounts due, the costs of the case.
- If the debtor opposes the initial application for an order for payment, the COA may request the debtor’s garnishment to secure the enforcement of the sums claimed.
Following the entry into force on 14 June 2022 of Law 10/2022 on urgent measures to boost building refurbishment activity in the context of the Recovery, Transformation and Resilience Plan of 16 June 2022, arises the possibility of resorting to extrajudicial means (article 21 of the HPL). This route contemplates arbitration, mediation and conciliation as alternative methods of conflict resolution. In all of them, the participation of the defaulting owner is necessary.
If you have additional questions regarding the order for payment procedure in Spain,
This article is not considered legal advice