Cyprus property owners are facing another dose of parliamentary déjà vu as MPs reopen long-running discussions over jointly-owned buildings, with proposed legislation dating back years still nowhere near being agreed and approved.
Six pieces of legislation are before the House of Representatives’ Interior Affairs Committee, covering building management, unpaid service charges and the sale and transfer of apartments and other units in jointly-owned developments..
For a property market that depends on clear rules, the length of time this has taken cannot be ignored. One proposal dates back to 2019, while other measures were proposed in 2022 and 2023.
Yet committee chairman and AKEL MP Aristos Damianou says discussions are effectively starting “from zero”.
There is still no firm timetable for completing the work.
That is a remarkable position for legislation intended to deal with everyday problems in apartment buildings. Owners, buyers, management committees and property professionals have been left watching the same issues circulate through Parliament while a definitive framework remains out of reach.
Jointly-owned building law back to ‘zero’
Damianou told StockWatch that the committee would seek a “golden mean” between the different positions.
But the admission that discussions are restarting from scratch underlines just how little the years of debate have delivered.
The objective is straightforward: establish workable rules for jointly-owned buildings and settle how issues such as unpaid contributions should be handled, a long-standing problem that’s been around for decades.
What the legislation would change
The six measures include a 2023 bill on managing jointly-owned buildings, a 2019 proposal covering jointly-owned buildings, two 2023 amendments on property sales and transfers, and two 2022 proposals concerning unpaid charges.
One of the central questions is whether a property carrying unpaid service charges should be allowed to change hands.
Under proposed 2023 amendments, a certificate from the relevant management committee could be required before a sale or transfer proceeds, confirming that outstanding charges have been paid.
Another proposal would give committees explicit authority to issue certificates confirming that contributions have been paid or formally regulated.
A separate proposal from MP Nikos Georgiou would offer greater flexibility by allowing a transfer where the debt has been cleared or a repayment plan has been agreed.
More power for management committees
The changes could give management committees a much stronger role in property transactions.
Their existing responsibilities include managing shared areas and collecting contributions from owners.
Under the proposed system, their certification could become an important part of buying and selling a flat where service charges are outstanding.
That could strengthen the recovery of unpaid contributions and help protect the finances of jointly-owned buildings.
The vital missing law amendment
However, all the discussions about the new law completely miss the most critical issue: if Management Committees do not have the funds available when essential maintenance, insurance and repairs are due, then repayment schemes and other plans are nothing more than a sticking plaster on a gaping wound. Management Committees need the money immediately it’s needed, not at some later date.
Everyone’s having their say
A wide range of organisations has been invited to contribute, including government departments, the Land Registry, Law Office, professional bodies, banks, property owners’ groups, managers and developers.
Broad consultation is important when legislation affects such a large part of the property market.
But consultation cannot become an end in itself.
With proposals stretching back to 2019 and discussions now restarting from “zero”, the obvious frustration is that Cyprus is still debating the rules rather than operating under them.
