GIPE Newsletter (Nº 24.156) April, 11th 2025

HOMEOWNERS’ ASSOCIATION:

WE DON’T WANT A SCREEN ON THE FACADE

A homeowners’ association has obtained legal support in its lawsuit against the owner of a ground-floor commercial space, demanding the removal of an LED screen installed on the building’s facade that displayed third-party advertising.

The owner defended his actions by arguing that the bylaws allowed him to decorate his section of the facade. However, the court ruled that such authorization is only valid if it is related to the activity carried out on the premises, so it is unacceptable to use it to broadcast third-party advertisements.

In short, homeowners or commercial space owners cannot modify common elements of the building without the approval of the community.

CONSTRUCTION AND DEVELOPMENT:

HOW TO PREVENT MONEY LAUNDERING

Real estate developers and professionals engaged in activities such as brokerage, agency, or commission in the real estate sector are subject to anti-money laundering regulations. This regulation requires buyers to verify the origin of the funds used to purchase real estate when no bank financing is involved.

Important: Although this obligation applies to all types of buyers—whether individuals or legal entities, residents or foreigners—tracking the source of the funds is especially complicated when it comes to individuals living outside the country. For this reason, it is advisable to take extreme precautions in these cases.

As the legislation does not specify in detail how to carry out this control, we offer some practical recommendations below.

Buyer Information

Identification form. It is advisable for the buyer to complete and sign a document that includes their personal information: nationality, tax residence, occupation or professional activity, and an explanation of how they obtained the funds for the purchase. If their answers raise questions or seem insufficient, do not hesitate to request additional information.

Based on the information provided, documentation proving the legal origin of the funds should be requested. Some examples of valid documents include:

• Income tax or asset declarations.
• Payroll, employment, or commercial contracts.
• In the case of sole proprietors or companies, proof of the type of economic activity they carry out may be requested.

Recommendation: In transactions such as off-plan sales, deposit contracts, or reservations, it is advisable to include a clause requiring the buyer to open a bank account with a Spanish institution and make payments from that account.

Note: In the “Back Office Area” of the GIPE website, you can find the KYC forms for the prevention of money laundering (uploaded: 2024-05-12).

GIPE: Together we will be stronger