I have lived in the same community for 30 years. I was told years ago that the president has a right to spend a percentage of the community fees without asking the residents.
Is this still the case? Our president has spent all our money and has left us with little in the bank.
W S (Costa del Sol)
The Law of Horizontal Property has never set out a specific percentage which the president can freely spend without asking the residents. The members vote at the AGM to approve the budget for the coming year, based on the income from community fees and the necessary expenses, including the 5 per cent required as a reserve fund.
The president is authorised to sign cheques or make bank transfers for these amounts. In some cases it is the administrator who handles the budget.
If an urgent and necessary expense suddenly arises, the president may make payment for it, and he should rapidly inform the community members. If he has used part of the reserve fund, a special assessment may be necessary the following year.