The Cyprus Parliament has restarted discussions on a new bill to regulate jointly-owned buildings such as apartment blocks and housing complexes. The aim is for the law to be voted on before the end of the current parliamentary session.
AKEL MP Aristos Damianou, who chairs the Parliamentary Committee on Internal Affairs, said that although a law has existed for many years, it was never properly applied. Key parts of the old law, like the creation of management committees, were simply not enforced.
A fresh 80-page proposal has now been put forward. Damianou admitted a lot of technical work has gone into the draft but warned that even the best-written laws are useless if they cannot be applied in practice.
The debate will continue next week. However, Damianou said the bill still has issues that need detailed discussion before it can pass.
DIPA MP Marinos Moushouttas reminded that the government first submitted the bill in 2023, but it was sent back for further talks with stakeholders. He explained that it now combines three different proposals, all focused on improving how management committees operate and clarifying their legal powers.
He noted that Cyprus has around 200,000 jointly-owned buildings – home to nearly half of the country’s population. Yet, problems like unpaid communal fees, disputes between neighbours, and poor building maintenance remain common.
The aim of the new law is to make sure everyone pays their fair share and meets their responsibilities. At the same time, another related bill on dangerous buildings will be debated, addressing safety concerns such as falling balconies.
Interior Minister Constantinos Ioannou welcomed the renewed debate. He stressed that fixing disputes in jointly-owned buildings has been a government priority since 2023.
According to the Minister, the new law will:
- Set out clear rights and obligations for owners and tenants.
- Create a compulsory Reserve (Sinking) Fund for unplanned/unscheduled repairs and maintenance.
- Give management committees more power and responsibility.
- Make insurance for buildings and individual units mandatory.
Ioannou added that unpaid communal fees and a lack of insurance have left many buildings unsafe, creating risks for both residents and the public. He thanked MPs and stakeholders for working together on the draft and said he hopes it will soon become law.
It is so frustrating, we have been waiting years for the new law that was supposed to bring with it a fast track process for dealing with non payers, it is useless taking legal action at present, years pass before you get to court, how do we pay for the insurance and repairs in the meantime?
As for imposing fines or adding interest, what difference will that make, the non payers will just laugh.
I approached a non payer on our complex earlier in the year to try and discuss, he just drove his car into me. Police didn’t want to know, phoned him and asked him to drive more carefully. What chance do we have to get anything sorted with courts bogged down for years and police who can’t be bothered to take action for criminal activity.
In addition to sending an email to Chairman of the Standing Committee on Internal Affairs with the salient points in my article, I sent the email to the ten other members of the Standing Committee on Internal Affairs and I’m hoping to get a reply from at least one of them.
I think the main problem is that failing to pay communal fees is a civil offence (not a criminal one) and the police cannot get involved. Perhapos if it was a criminal offence, things would change.
I trust the new legislation will address the issue of inadequate insurance, ensuring that coverage extends to the entire building and not only the common areas.
Reliance on individual owners’ private or mortgage-linked insurance policies is insufficient and does not meet the requirements of Clause 38L of the current law… (Tenure, Registration and Valuation) Law of 1993. Nor does it protect co-owners in the event of partial or total loss.
Committee members who neglect insuring the Jointly Owned Building against fire, lightning and earthquakes, for the sum of the replacement value of the entire building, exposes all owners to serious financial risk if the building is damaged and found under insured!
The current law requires the jointly-owned building (i.e. everything within the boundary of the development) to be insured against fire, lightning and earthquakes.
However, many Management Committees only insure the jointly-owned property (i.e. everything within the boundary of the development that is not a unit)
I wrote an article on the subject a few years ago – You have insurance but are you insured?.
If Management Committees abide by the law, unit owners only need to insure the contents of their property.
Thank you for your comment Nigel. Implementation of the law will be key once the new legislation is approved. It is extremely frustrating and difficult to convince members of the Management Committee of my complex that it is insufficient to only insure common areas or for an amount far lower than the real replacement value of the entire building!
There’s also a guide that you and your MC may find useful – EVERYTHING you need to know about the insurance of jointly-owned buildings by Miltiades Miltiadou – Independent Insurance and Risk Management Consultant.
Thank you. I have read the guide by Miltiades Miltiadou. I also forwarded this article to my Management Committee a couple of months ago before our AGM was held. The MC simply don’t care, nor do they understand the risk implications of being under-insured. Owners probably have mortgaged linked insurance for their property; however, this is insufficient, as the financial institutions will benefit in case of partial or complete destruction of the building! The key to the new legislation is enforcement by the authorities (not left up to the MC).