## How to Claim a Debt from a Defaulting Owner in Spain: The Monitorio Process Step by Step Arrears in homeowners associations (Comunidades de Propietarios) are one of the most common and damaging problems in community management across Spain. When owners fail to meet their financial obligations, it directly impacts the community's ability to maintain common areas, pay for essential services, and undertake necessary repairs. This can lead to declining property values, internal disputes, and significant financial strain on the diligent owners. Fortunately, **Article 21 of the LPH** (Ley de Propiedad Horizontal – Spanish Horizontal Property Law) establishes a specific, streamlined procedure — the **monitorio process** — designed to claim community debts quickly and cost-effectively, offering a robust legal pathway for communities to recover owed funds. --- ### Step 1: Certify the Debt at the AGM The first crucial step is to formally certify the defaulting owner's debt during a General Meeting of Owners (AGM). This certification ensures the debt has legal validity and is undisputed by the community. The debt must be approved by a simple majority of owners present. Following this, the community's secretary-administrator issues a **debt certificate**, which meticulously details the amount owed, itemizes the unpaid fees (e.g., monthly contributions, extraordinary assessments), specifies any accrued interest, and clearly identifies the defaulting property and owner. This certificate must be signed by both the community president and the secretary-administrator. It serves as the primary legal document proving the debt exists. --- ### Step 2: Notify the Defaulting Owner Before initiating legal proceedings, the certified debt must be formally communicated to the defaulting owner. This formal notification is mandatory and serves as a final attempt to resolve the matter out of court. The preferred and most legally robust method is sending a **burofax with delivery and content certification**. This provides irrefutable proof that the owner received the notification and was informed of the debt details. If a burofax proves impossible (e.g., owner's address unknown), other methods like notification via notary public or judicial decree might be necessary. The notification should explicitly state the amount owed, the period it pertains to, and a deadline for payment, usually advising that legal action will follow if payment is not made. --- ### Step 3: File the Monitorio Claim If the owner fails to respond to the formal notification or refuses to pay, the community can then file the monitorio claim. This claim is presented at the **Court of First Instance** (Juzgado de Primera Instancia) in the judicial district where the defaulting property is located. * **Debt under €2,000**: For smaller debts, the process is simplified. The community can file the claim directly without the mandatory involvement of a lawyer (abogado) or a procurator (procurador). This makes the process significantly more accessible and less costly for communities. * **Debt over €2,000**: If the debt exceeds this threshold, the community is legally required to engage both a lawyer and a procurator. The lawyer provides legal advice and represents the community in court, while the procurator acts as a procedural agent, managing communications and filings with the court. The claim must be accompanied by the certified debt certificate and proof of formal notification to the owner. --- ### Step 4: Court Issues Payment Order Once the monitorio claim is filed and accepted, the court issues a payment order (requerimiento de pago) to the debtor. From the date of receiving this order, the debtor has **20 working days** (excluding weekends and public holidays) to respond. There are three possible outcomes at this stage: 1. **Payment**: The debtor pays the full amount owed, including any interest and initial legal costs. In this case, the monitorio process concludes, and the debt is settled. 2. **Contestation/Opposition**: The debtor opposes the claim, arguing that the debt is not legitimate or that the amount is incorrect. If this occurs, the monitorio process is suspended and transforms into an ordinary verbal (for debts up to €6,000) or ordinary civil procedure (for debts above €6,000). This subsequent process requires full legal representation for both parties and involves a formal hearing where evidence is presented. 3. **No Action**: If the debtor neither pays nor contests the debt within the 20-day period, they are considered in default. The court will then automatically issue an enforcement order (auto despachando ejecución). --- ### Step 5: Enforcement and Seizure With an enforcement order in hand, the community can proceed to request the **seizure of the debtor's assets** to cover the outstanding debt. This can include seizing funds from bank accounts, salaries, pensions, vehicles, or even the property itself. A critical aspect of Spanish Horizontal Property Law is that the community's credit for common expenses for the current year and the three preceding calendar years (art. 9.1.e LPH) holds a **preferential claim** over the defaulting property. This means that, in most cases, the community's debt takes precedence over other potential charges on the property, such as non-mortgage loans, giving the community a strong position in recovering funds. If necessary, the property can be auctioned to satisfy the debt, ensuring the community ultimately recovers its dues. Furthermore, a "nota de afección real" is registered against the property, notifying any potential future buyers of the outstanding community debts. --- ### Can the Community Cut Off Common Services to Defaulters? No — Spanish law is clear on this point. The LPH **does not permit** communities to cut off essential common services (like water, electricity for common areas, or lift access) to defaulting owners. Such actions could be seen as infringing upon basic rights and could lead to legal repercussions for the community. However, the LPH does provide a significant disincentive for non-payment: a defaulting owner may be **excluded from voting** at the AGM while the debt remains outstanding (art. 15.2 LPH). This prevents owners who are not contributing financially from having a say in community decisions. --- Effectively managing community finances and swiftly addressing arrears is paramount for a harmonious and well-maintained property. The monitorio process, while structured, provides a powerful and legally sound mechanism for communities to protect their financial health. Professional property management services, such as IgeraFincas, automatically detect unpaid fees, send reminders, and generate comprehensive debt reports for the AGM, streamlining these initial crucial steps and ensuring legal compliance. [Request demo →](/igerafincas)