If you are thinking of selling your property, premises or garage you will need to have a document called a certificate of debt for the property which you will need to provide for the sale. Do you know what it is, how to get it and what it includes? We will explain. Read on!
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What is it?
The Community certificate of debt is a document that shows any outstanding debts the owner has at the time when the property, premises or garage is sold. The seller must provide this certificate when they sign the public deed of sale.
This certificate is regulated by the provisions of Law 49/1960, of 21 of July on Horizontal Property and, in particular, by article 9.1 of this Law.
Who issues this certificate?
It is issued by the Secretary or the President, according to article 13 of the Horizontal Property Law, within 7 calendar days of it being requested.
It is advisable to get the certificate issued on a date as close as possible to the deed of sale.
Does the certificate include communal repair charges?
Yes, it includes any works and repair charges of the Community that are outstanding or ongoing. When it refers to work that has been carried out with deferred payment, this is a debt assumed by the community and by each of the owners in proportion to their share. Consequently, the Secretary-administrator has the obligation to provide information about this debt when issuing the certificate.
Who is responsible for any incorrect details in the certificate?
The person who signs the document (secretary or president) will be jointly responsible in the event of negligence, fault, omission or inaccuracy in the certificate. But, as Jesús Santidrián, lawyer and Director of the expansion area in Madrid explains, “if on the date the certificate is issued, the owner was up-to-date with all their payments, and subsequently, a payment is rejected, under the Payment services Law, the Secretary-administrator is not responsible for this. It will either be the responsibility of the seller, because of their act of bad faith or the purchaser who must assume the debt as it forms part of the real property encumbrance, notwithstanding their right to recharge it to the seller”.
Why is the Community certificate of debt obligatory?
Providing the certificate is an essential requirement for notarizing the sale of the property, and indicating whether the owner is up-to-date with payment of the general costs of the Community, unless the purchaser releases the seller from this obligation. In this case, if there are then any outstanding debts with the Community, the purchaser is responsible for any debts left by the previous owner. Debts that you will have to pay will be those for the current year and the three previous years.
Also, if your property has any outstanding debts with the bank, in this article we will tell you how you can sell your mortgaged property, hassle-free. Or in the best-case scenario, if you already have a purchaser, how to settle your mortgage debt at the time of the sale.