More than two years ago, a legislative bill focused on improving the management of jointly-owned buildings in Cyprus was introduced and opened for public consultation. This original bill has since evolved into three separate bills, with feedback pouring in from key stakeholders such as the Cyprus Association of Jointly-Owned Managers (SYDIKOIK), the Association of Cyprus Banks (ACB), and the Cyprus Real Estate Registration Council.
Despite these efforts, one core challenge stubbornly persists: the non-payment of communal fees by certain property owners in jointly-owned buildings.
From numerous communications with Management Committees across Cyprus, it’s clear the biggest operational threat is the refusal or inability of some owners to pay their communal fees. This failure to contribute threatens essential services like insurance coverage, routine maintenance, and overall building upkeep.
Communal fees provide vital funding that ensures buildings remain safe and functional. When some owners don’t pay, this financial gap unfairly burdens others who consistently meet their obligations.
Management Committees urgently require quick and dependable access to these funds to carry out their responsibilities effectively. Without enforceable mechanisms that’ll ensure timely payment, committees are left hamstrung — unable to maintain buildings properly or respond swiftly to urgent repairs.
A significant complication arises from the fact that thousands of properties still lack Title Deeds. This legal void restricts Management Committees from filing memos or applying standard enforcement procedures against defaulters.
Consequently, many committees find themselves forced to seek costly and slow court actions that fail to address the immediate financial needs tied to communal fees.
In scenarios where banks repossess units within shared buildings, these financial institutions must bear responsibility for paying the associated communal fees. This obligation should similarly extend to asset management firms or vulture funds acquiring distressed loans from banks. Failing to enforce payment from these entities exacerbates the financial strain on other owners and jeopardizes building maintenance.
Additionally, when an owner passes away, it’s crucial that executors or administrators of the estate clear any outstanding communal fees before distributing inheritance, ensuring communal obligations are settled fairly.
For Cyprus’ joint ownership system to thrive, legislative measures must provide Management Committees with strong, practical enforcement tools to guarantee prompt fee collection. This can include administrative enforcement powers, financial penalties, or accelerated recovery processes. Without such provisions, reforms risk becoming superficial patches that fail to resolve systemic issues.
Of course, it’s important to reserve compassion for owners facing genuine financial hardship due to illness or sudden income loss. For these cases, flexible repayment plans negotiated through mediation can balance fairness with protecting the collective interest.
Whilst navigating communal fees remains a challenge, Cyprus continues to offer a diverse real estate market. Those interested can explore various options, from Cheap Apartments for Sale Cyprus to attractive Plots of Land for Sale, making property ownership accessible across the island.
Understanding these communal fee issues will help potential buyers make more informed decisions when investing in the Cyprus property market. For further insights, browse our dedicated listings for Houses for Sale in Cyprus and beyond.
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