Ruling of the Spanish Supreme Court (Tribunal Supremo), specifically the Plenary of the Civil Chamber, dated October 3, 2024. The case revolves around a community of property owners (Comunidad de Propietarios) in Madrid and a dispute over the legality of prohibiting tourist rentals within the building. Below are the key points from the ruling:
- Case Background:
- The community of property owners in a building in Madrid passed a resolution on January 20, 2020, prohibiting short-term tourist rentals.
- The resolution was passed by a majority of more than three-fifths, but not unanimously.
- Delsa Patrimonial Management Group S.L., a property owner in the building, filed a lawsuit challenging the validity of the resolution, arguing that it violated the community’s statutes and was harmful to their interests.
- Lower Court Decisions:
- The Court of First Instance No. 43 of Madrid dismissed the lawsuit, upholding the community’s right to limit tourist rentals under Article 17.12 of the Horizontal Property Law (LPH), which allows communities to pass such resolutions with a three-fifths majority.
- On appeal, the Provincial Court of Madrid (Audiencia Provincial) reversed the decision, ruling that the community could limit but not outright prohibit tourist rentals.
- Supreme Court Ruling:
- The Supreme Court accepted the community’s appeal and confirmed the validity of the resolution prohibiting tourist rentals.
- The court interpreted Article 17.12 of the LPH, concluding that the law allows communities to not only limit but also prohibit short-term tourist rentals with a three-fifths majority, rather than requiring unanimity.
- The court reasoned that the prohibition serves the interests of the community, including mitigating disturbances caused by tourist rentals.
- Legal Interpretation:
- The court ruled that the term “limit or condition” in the law includes the possibility of a complete prohibition.
- The ruling stressed that the community’s decision did not violate property rights, as limitations on usage can be imposed by the majority if deemed necessary for the community’s general welfare.
- Final Decision:
- The Supreme Court overturned the Provincial Court’s decision and reinstated the original ruling of the Court of First Instance, confirming the legality of the community’s prohibition of tourist rentals.
- The court also ordered Delsa Patrimonial to pay the costs of the appeal process.
This judgment establishes a precedent for communities of property owners in Spain, allowing them to prohibit short-term tourist rentals if supported by a three-fifths majority, which could significantly impact the regulation of tourist accommodations in residential buildings.
