It’s been more than two years since a bill was drafted, designed to resolve longstanding issues and challenges in the management of jointly-owned buildings, and published for public consultation.
The bill, which has transformed into three bills has received numerous calls for amendments from interested parties including the Cyprus Association of Jointly-Owned Managers (SYDIKOIK), the Association of Cyprus Banks (ACB) and the Cyprus Real Estate Registration Council.
Yet none of these interested parties has fully addressed the most critical issue – communal fee payments.
Jointly-owned buildings in crisis
From the correspondence I receive, the most persistent and damaging challenge faced by Management Committees of jointly-owned buildings is the outright refusal of certain owners to pay their communal fees.
This behaviour directly jeopardizes the insurance, maintenance, and proper operation of buildings, while unfairly transferring the financial burden onto responsible owners who fulfil their obligations.
Management Committees must have immediate and reliable access to funds to perform their core duties — including insuring the building and carrying out essential repairs & maintenance works. Without an enforceable system for prompt payment, Management Committees are effectively set up to fail.
The problem is further aggravated by the widespread absence of Title Deeds for thousands of properties, which makes it impossible to lodge memos or pursue standard enforcement measures.
In many cases, the only option left to Management Committees remains the courts, a route so costly and slow that it offers no solution to the immediate need for communal fees.
In cases where banks have repossessed units within jointly-owned buildings, those banks must assume responsibility for the payment of all communal fees associated with repossessed units. The same obligation must also apply to credit acquiring companies (vulture funds) or asset management entities that have acquired distressed loan portfolios from banks. Failure to enforce this responsibility creates serious inequities and further deprives Management Committees of the funds necessary for building upkeep and safety.
In certain cases, the property owner may have passed away. In such circumstances, the executor or administrator of the deceased’s estate must settle any outstanding communal fees, which are then deducted from the estate before distribution to the beneficiaries.
If legislative reform is to be meaningful, it must equip Management Committees with robust and practical enforcement powers that ensure the timely collection of communal fees. Anything less will merely paper over the cracks, addressing the symptoms without resolving the underlying cause. Stronger provisions — such as administrative enforcement mechanisms, financial sanctions, or expedited recovery procedures — are essential to safeguard the long-term sustainability and integrity of jointly-owned buildings.
That said, there will inevitably be cases where owners are genuinely unable to pay due to severe financial hardship arising from illness or loss of income. Such cases must be handled with compassion, and flexible repayment arrangements should be arranged through mediation services to ensure fairness without undermining the collective interest.
Nigel. As I see it, in principle provided a management committee is well ran and follows the current law I mostly agree but, nothing is covered here about committees that operating with knowing illegal intent, favour certain suppliers, fail to follow the law forcing civil action from owners which is often restrictive and limited on time.
These complexes need dual control, allowing for the protection of any owner who uncovers wrong doing (beyond funding private civil action) or the manipulation and control of one or two members. Does it happen yes. The district court have case files and there are several ongoing cases the put liability on committees which means in financial terms owners pay for the unlawful actions or overt control of a few.
Committee members should be jointly liable for the actions of the committee as a whole when wrongdoing is uncovered.
There are well managed communities but many are not
Mike. If you’re (or anyone else) is dissatisfied with the way your Management Committee is running things, you get an opportunity to vote them out of office every year. Owners in this situation must band together and vote misfunctioning committees out of office.
Thank you Nigel, for providing such a thorough and insightful analysis of the communal fees issue in Cyprus.
I’ve sent my article as an email to the Chairman of the Standing Committee on Internal Affairs, Aristos Damianou MP, and the other ten members I wonder if I’ll get a reply?