Editorial transparency and use of artificial intelligence
This article forms part of the CostaLuz Lawyers blog and is published for general informational and educational purposes only. It was prepared with the assistance of artificial intelligence tools and, before publication, was substantively reviewed and editorially approved by Maria de Castro, a Spanish-qualified lawyer registered with the Cádiz Bar Association under number 2745, founder of CostaLuz Lawyers and the person responsible for the editorial review of the published content.
This article does not constitute legal, tax, immigration, employment, estate-planning or investment advice and does not replace an individual assessment and the professional work of the appropriate CostaLuz Lawyers specialist. No action or omission should be based solely on this information.
Buying into a new development before every unit is sold means your community fees are being set differently than they will be once the building is fully established — and that difference is worth understanding before you buy.
Who actually controls the budget early on
In a new development, the developer typically controls and sets the community budget until enough units have been sold for owners’ meetings to properly constitute an independent community of owners. This is a meaningfully different situation from an established building, where the owners themselves already control the budget through their own meetings.
Why the fees can change once the community takes over
An initial, developer-set budget is often built on incomplete or estimated information about the building’s actual running costs — utilities, maintenance, staffing for shared facilities. It is common for the first owners’ meeting after the community is properly constituted to revise the budget once real costs are known, which can mean fees moving in either direction from what was initially quoted.
Shared facilities not yet handed over
Whether you’re liable for a share of costs on common areas — a pool, gym, or gardens — that have not yet been finished or handed over when you move in depends on what the deed of sale and the community’s statutes actually say about phased delivery. This varies by development, and is worth confirming specifically rather than assumed.
The reserve fund requirement applies from the start
Spanish law (the Horizontal Property Act) requires every community of owners to maintain a reserve fund of at least 10% of the ordinary annual budget. This obligation exists from the community’s constitution onward — it is not something that only applies once every unit in the development has been sold and the community is fully established.
What to check before buying into a still-developing community
Ask for the current developer-set budget, whether it has already been reviewed against actual running costs, and what the deed of sale specifies about your share of costs for any shared facilities not yet handed over. These questions are distinct from the general community-fee checks that apply to any established building.
Call us today on +34 919 499 342 or email marialuisa@costaluzlawyers.es before buying into a new development in Spain.
Frequently Asked Questions
Who sets the community fees before all the units in a new development are sold?
The developer typically controls and sets the community budget until enough units are sold and owners’ meetings can properly constitute an independent community of owners — a distinct situation from an established building where owners themselves already control the budget.
Can the fees change significantly once the community is fully constituted?
Yes — an initial, developer-set budget is often based on incomplete information about actual running costs, and the first owners’ meeting after the community is properly constituted commonly revises the budget once real costs are known.
Do I have to pay fees on shared facilities that are not finished when I move in?
This depends on what the deed of sale and the community statutes say about phased delivery of common areas — it is worth checking specifically before buying, since practice varies by development.
Is there a reserve fund requirement from day one?
Yes — Spanish law requires communities of owners to maintain a reserve fund of at least 10% of the ordinary annual budget, and this obligation exists from the community’s constitution, not only once it is fully established with all units sold.
What should I check before buying into a still-developing community?
Ask for the current developer-set budget, whether it has been reviewed against actual running costs yet, and what the deed of sale says about your share of costs for shared facilities not yet handed over.