Cyprus is moving forward with a new bill designed to tighten up the management and maintenance of jointly-owned buildings—such as apartments. While the draft law has some major changes, it does not cover some major issues, namely the situation of unpaid communal charges.
Worst headache: unpaid communal charges
For years, management councils have been frustrated with owners who refuse to contribute their proportionate share of common expenses. Unfortunately, the new legislation achieves very little in changing this state of affairs. Non-paying owners are still free to live in their building, bequeath it to their heirs, and wait for payment until the building is sold.
At present, the only means whereby committees can claim back these monies is through the courts—a costly and time-consuming process. This results in buildings having insufficient funds to afford even elementary services such as cleaning, insurance, and repairs.
Key improvements in the bill
The bill does contain some good changes:
- Expert building inspections: Committees can hire qualified engineers and other experts to check the structural, electrical, and mechanical condition of a building through the Cyprus Scientific and Technical Chamber (ETEK). This is especially necessary for older block flats that may be at risk of decline.
- Reserve funds: The management committees have to set aside funds for unexpected repairs and immediate maintenance.
- Sale of property and charges: Vendors shall not be allowed to sell their property until the unpaid communal fees have been settled. The committees will issue certificates to confirm payment has been made.
What’s missing?
Originally, the bill provided for regular inspections compulsory at set intervals. That would have ensured uniform maintenance and prevented safety hazards. The clause was, however, removed, rendering inspections voluntary and dependent on available budgets. The Interior Minister has suggested that it can be reinstated later through amendments to the existing Streets and Buildings Law.
Another weakness is the ineffectual enforcement of common payment of charges. Even precluding the transfer of the property in case of non-payment is a step in the right direction, committees remain bereft of the immediate funds to lock up money needed for day-to-day operations.
Additional provisions
The new draft introduces:
- Clarity on GDPR and data protection.
- Mediation as an alternative to conflict between owners and committees.
- Altered fire safety requirements.
- Local district authority control.
Why it matters for property owners
For all the people who reside or invest in a collective property in Cyprus, this bill matters. It institutes new requirements for inspections, safety, and finances. But although this is meant to correct some of the ongoing issue that collective property owners face, until more stringent measures are introduced for fees collection and compulsory maintenance, most buildings are bound to continue with the same issues that they have always had.
