The Cyprus Real Estate Registration Council has raised strong concerns and outright opposition to key provisions in the draft jointly-owned buildings bills currently under discussion in Parliament.
According to the Council, these provisions risk creating a bureaucratic deadlock in the property market and placing an unbearable burden on already understaffed building authorities.
While acknowledging the need for better management of jointly-owned buildings, the Council warns that certain clauses could have disastrous consequences.
Proof of jointly-owned buildings communal fee payments
A central issue of contention is the proposed requirement for a certificate from a jointly-owned buildings management committee confirming payment of communal fees, for both the filing of a sales contract and the transfer of property to its buyer.
Council President Marinos Kineyirou explained: “Such a demand would block thousands of transactions, cause endless delays and open the door to potential blackmail of owners by arbitrary or mismanaged committees.
“Our economy and investment attractiveness rely on the speed and security of transactions. Instead of solving one issue, we risk creating a far greater one, undermining the credibility of Cyprus as an investment destination.”
The Council also notes that management committees of jointly-owned buildings already possess the legal means to pursue unpaid communal fees through the courts, without resorting to procedures that hold owners hostage.
Building authorities overwhelmed
Equally problematic, in the Council’s view, is the proposal to assign registration and supervision of management committees to building authorities.
“It is common knowledge that building authorities are already overwhelmed by workload and understaffing, leading to major delays in issuing permits. Tasking them with overseeing thousands of committees across Cyprus is a recipe for failure. It would paralyse both the construction sector and the functioning of the committees themselves,” added Mr Kineyirou.
Call for rethink
In a memorandum submitted to the Parliamentary Committee on Internal Affairs, the Real Estate Registration Council urged MPs to reconsider the contested provisions.
At the same time, the Council expressed its readiness to contribute to constructive dialogue to find solutions that are practical, fair, and effective – without undermining the Cyprus property market or economic growth.
In my opinion, the objection raised by the Real Estate Registration Council does not make sense. If an owner in a Jointly Owned Building sells their property without first settling their outstanding communal fees, how is the Management Committee ever expected to recover those funds? In Cyprus, for example, when someone sells a plot of land, they must first obtain clearance from both the Tax Office (for Capital Gains Tax) and the Municipality (for rates) before the property can be transferred to the buyer. Often, sellers may not have the funds available to pay these amounts upfront; however, this is typically resolved through the sale agreement, where the buyer agrees to cover these costs. The same principle could easily apply to communal fees — payment could be arranged with the buyer before transfer, and the remaining balance of the sale price could be paid upon completion of the transfer.
I agree whole heartedly – my take on the matter will be published later today.