Urgent Need for New Legislation on Jointly-Owned Buildings in Cyprus

Jointly-owned buildings in Cyprus are increasingly burdened by unresolved issues such as unpaid communal fees, neglected maintenance, and growing safety hazards. These challenges jeopardize the daily lives of thousands of residents, making the proposed 2023 law on communal building management not only timely but crucial. The legislation aims to enforce responsible management, ensure timely upkeep, and ultimately enhance living standards for owners and tenants alike.

Current Challenges and Legislative Delays

The draft legislation titled “The Law on the Management of Communal Buildings and Related Matters of 2023” has been under parliamentary review by the Committee on Internal Affairs but progress has stalled due to several delays. Considering that Cyprus boasts approximately 70,000 jointly-owned buildings encompassing over 200,000 residential units, establishing a modern regulatory framework is more important than ever to guarantee efficient management and legal clarity.

Key Recommendations from Industry Experts

The Cyprus Association of Communal Building Managers (SYDIKOIK), a prominent body affiliated with the Cyprus Employers and Industrialists Federation (OEB), recognizes the draft law as a solid foundation. Their feedback highlights several essential amendments to strengthen the bill, including:

• Precise calculation methods for each owner’s proportional share of expenses.
• Imposition of fines by Management Committees on owners who habitually default on their communal fee payments.
• Creation of a mandatory capital expenditure (CapEx) fund, requiring owners to contribute at least 15% of the annual communal budget to future maintenance and upgrades.
• Establishment of a reserve fund equal to six months’ worth of communal expenses to cover emergency repairs and unexpected costs.

Additional Proposals for Improved Management

SYDIKOIK has also suggested several important clarifications to the Parliamentary Committee, such as:

• Defining a jointly-owned building as “occupied” starting from the day communal electricity is connected, assigning responsibility to owners of uninhabited units.
• Allowing professional management company representatives to participate on Management Committees, rather than limiting membership strictly to unit owners.

Digitalising Building Management

One of the promising solutions proposed involves the full digitalisation of the application and management processes for communal buildings. Having a dedicated government department manage registrations and communication electronically is expected to increase transparency and efficiency. This will complement the broadened authority and responsibilities assigned to Management Committees.

Impact on the Property Market and Residents

Effective legal regulation will significantly improve the upkeep and safety of apartment complexes and other communal properties throughout Cyprus. This progress is essential to prevent tragic incidents like balcony collapses caused by corrosion and poor maintenance – risks that have unfortunately occurred in recent years.

Various organisations, including the Cyprus Property Developers Association, the Cyprus Scientific and Technical Chamber (ETEK), and the fire service, have recommended further refinements to the bill. If adopted, the legislation will introduce stricter enforcement against those who repeatedly neglect communal fees, streamline fee collection, and allow easier access to up-to-date government records of property ownership.

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Conclusion

The urgent enactment of a robust legal framework governing jointly-owned buildings is a vital step toward safeguarding residents’ wellbeing and enhancing Cyprus’ real estate market. With improved management, enforced accountability, and digital tools, the quality of communal living will reach new heights, reinforcing Cyprus as a desirable location for property investment and comfortable living.