Property owners in Cyprus once again find themselves navigating familiar parliamentary waters as lawmakers revisit the complex issue of jointly-owned building legislation. Despite numerous drafts and discussions spanning several years, concrete legal reforms remain elusive, leaving dozens of challenges unresolved for apartment owners and buyers.
Currently, six separate legislative proposals addressing jointly-owned buildings—including management, unresolved service charges, and the sale or transfer of units—are under review by the House of Representatives’ Interior Affairs Committee. The earliest draft dates back to 2019, with additional proposals introduced as recently as 2022 and 2023.
However, committee chairman and AKEL MP Aristos Damianou has admitted that deliberations have essentially had to restart from square one, with no clear timeline for completion. This protracted delay is striking, given how vital transparent regulations are to the functionality and attractiveness of Cyprus’ property market.
The main objective is to create clear, enforceable rules for managing jointly-owned buildings, particularly focusing on the longstanding problem of unpaid service charges that have plagued apartments and complexes for decades.
Among the six drafts, a 2023 bill aims to streamline building management, while amendments proposed in 2023 and 2022 focus on the procedures relating to property sales and how outstanding charges affect transfers.
One pressing question is whether a property can be legally sold or transferred if it has unpaid service charges. Some proposals suggest requiring a certification from the building’s management committee confirming that all contributions have been settled before any transaction can proceed. This would grant the management committees greater authority and help improve the recovery of outstanding debts.
Another notable proposal from MP Nikos Georgiou offers flexibility by allowing transfers if the debt has been cleared or a repayment plan agreed, balancing protection for both buyers and owners.
Currently tasked with overseeing common areas and collecting fees, management committees could see their powers enhanced significantly under the new rules, allowing them to issue certificates that affect the sale process. This could prove pivotal in protecting the financial stability of jointly-owned properties and limiting the accumulating debts that jeopardize maintenance and repairs.
Despite the detailed drafts, a crucial concern remains unaddressed: immediate funding for necessary maintenance, insurance, and repairs. If management committees lack accessible funds when urgent expenses arise, repayment plans and legal certificates only serve as temporary fixes rather than lasting solutions.
A wide range of stakeholders—government departments, the Land Registry, banks, developers, property owners’ groups, and professional bodies—have been invited to contribute. While inclusive consultation is vital, the ongoing cycle of debate since 2019, now starting again from scratch, frustrates many in Cyprus’ real estate sector who long for clear, enforceable rules to bring stability.
Until these laws are finalized and implemented, challenges surrounding jointly-owned buildings continue to impact both buyers and sellers in Cyprus’ dynamic real estate market. If you’re exploring options, check out our Cheap Apartments for Sale Cyprus or discover opportunities among Auction Properties in Cyprus for unique investment prospects.
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