If you own an apartment or unit in a jointly owned building in Cyprus, you’re legally required to pay communal fees. These fees cover the upkeep, insurance, repairs, and management of shared areas like pools, stairwells, lifts, and outdoor spaces. But how exactly should these fees be calculated?
According to Cyprus’s Immovable Property Law, Cap. 224, communal fees are traditionally apportioned based on the relative size of each unit. This includes both the enclosed area and any covered or uncovered balconies and verandas.
The formula is straightforward:
(Unit’s total area) ÷ (Sum of all units’ areas) = Percentage contribution to communal budget
The Management Committee of the building sets the communal budget and fees accordingly.
Recently, a Management Committee turned to ChatGPT for guidance on calculating these fees. ChatGPT suggested using the “percentage share” of the communal areas as found in the unit’s title deed when official regulations are absent. This advice is unfortunately misleading.
This “share” figure, which appears in some title deeds, does not legally determine your communal fee contribution. Instead, it’s more of an ownership proportion, not a basis for fees unless explicitly stated in the building’s registered regulations.
ChatGPT’s explanation likely stems from publicly available real estate sites and documents that conflate ownership shares with fee calculations. Since AI models like ChatGPT draw from a wide range of internet data, they sometimes relay inaccurate or outdated information.
AI models, including ChatGPT, can produce hallucinations—confident but incorrect or nonsensical responses. A Stanford University study shows AI hallucinations are common, occurring in up to 88% of legal query responses.
After reviewing the official law, ChatGPT correctly responded when asked directly about communal fees: they are calculated based on each unit’s floor area, covering costs for maintenance, management, repairs, and insurance of shared property. The Management Committee is responsible for specifying and collecting the fees, with legal means to recover unpaid amounts.
When dealing with communal fees, rely on official legal documents and trustworthy sources rather than solely on AI-generated answers. This applies equally to anyone interested in properties such as cheap apartments for sale in Cyprus or other real estate investments.
AI can be a helpful starting point but always validate critical information, especially regarding legal and financial matters in Cypriot real estate. Use official laws, expert advice, and reputable resources to avoid costly misunderstandings.
If you’re exploring property options, check out our listings for cheap houses and villas for sale in Cyprus and make informed decisions based on solid facts.
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