How do you change managing agent and how many votes are needed?
It is decided by the owners' general meeting, whether annual or extraordinary, provided the change is on the agenda. A simple majority is enough, which in Catalonia is counted only among the owners who vote, disregarding those who are absent. Before the meeting, it is advisable to review the current managing agent's contract, in case it sets a notice period or compensation. Afterwards, the outgoing agent must hand over all the documents of the owners' association (the “comunidad de propietarios”) to the new one.
Alburquerque Abogados
José Manuel AlburquerqueHow it is decided
- The change must be on the agenda. It can be made at the annual general meeting, which is the one that elects the officers, or at an extraordinary general meeting.
- Any owner can ask the president in writing, before the meeting is called, to include the change on the agenda.
- If the president does not want to call the meeting, it can be requested by a quarter of the owners or by owners who together hold a quarter of the participation shares, the percentage each flat has in the building. If neither the president nor the vice-president calls it, those owners can call it themselves.
- A simple majority is enough. The “Código Civil de Cataluña”, the Catalan Civil Code, counts only the votes and shares of the owners taking part in the vote, whether present or represented. It requires the votes and shares in favour to exceed those against.
For example, in a building of 20 flats with equal shares, if 9 owners attend the meeting and 5 vote for the change and 4 against, the change goes through, even though only a quarter of the flats support it. The 11 absent owners do not count.
In the rest of Spain, the Horizontal Property Act (“Ley de Propiedad Horizontal”) counts the majority differently, on the basis of all the owners and shares at the first call of the meeting or of those attending at the second call.
The outgoing managing agent's contract
The Catalan code does not regulate the contract with the managing agent. The meeting can change the managing agent whenever it wishes, but what has to be paid to the agent for ending the contract early or for not giving advance notice depends on what was signed. That is why it is advisable to read the contract before the meeting and, if it is annual or renews from year to year, to give the agent the agreed notice.
Handing over the documents
The documents belong to the association, not to the managing agent. The secretary, who is the managing agent when the association has a professional one, must keep the minute books for thirty years and other documents for at least five. It is advisable to ask the outgoing agent in writing to hand over to the new one:
- The minute book and the documents relating to the meetings.
- The accounts with their supporting documents, the bank statements and the account balances, including those of the reserve fund.
- The list of owners in arrears and the status of any ongoing lawsuits.
- The maintenance and insurance contracts, the keys and the certificates for the building's installations.
With the certificate of the meeting's resolution, the authorised signatories on the association's bank accounts must be changed at the bank. If the outgoing agent does not hand over the documents, a formal demand can be sent by “burofax” (a certified letter with proof of content) and, if they still fail to do so, they can be sued to hand them over and account for their management. Before suing, the law requires an attempt at negotiation.
This answer is provided for educational purposes and offers initial guidance on the question raised. Every matter has its own circumstances and nuances that require individual assessment. For that reason, before taking decisions with significant consequences, it is advisable to consult a professional and not to rely solely on this information. Personalised advice makes it possible to apply these explanations to the specific case and to assess the options available with greater certainty.