Cyprus’ proposed rules for managing jointly owned buildings are moving closer to detailed parliamentary scrutiny, after the Ministry of the Interior and District Local Government Organisations (DLGOs) made progress in resolving differences.
The House Interior Committee has given the parties three weeks to submit their final written proposals and update the draft legislation. The discussions cover six legislative texts and include government services, local organisations, professional bodies, banks and insurers.
Key issues include the transfer of management responsibilities to the DLGOs, the digital system they will need, unpaid communal charges and insurance cover for jointly owned buildings.
First proposed in 2023, the bill has been over three years in the making, shaped by stakeholder feedback and calls for urgent action. Earlier this year, we reported that legislation on jointly owned residential buildings and unsafe properties would top the Interior Affairs Committee’s agenda when Parliament returned in September.
Agreement on new responsibilities, subject to preparations
The Ministry is reported to have accepted the main conditions set by the DLGOs before they take on responsibility for managing jointly owned buildings.
As we reported yesterday, the proposed transfer would follow a two-year transition period, with 1 January 2029 as the target date, provided the required preparations are completed first. These include digital infrastructure, administrative and financial support for the DLGOs, and a clear definition of their responsibilities in the final legislation.
Nicosia DLGO chairman Constantinos Yiorkadjis said the organisation was ready to take on the role, but stressed that the relevant software must be completed, fully operational and tested in advance.
The Legal Service said proposals on the software should be submitted during the clause-by-clause examination of the bill. It will also review constitutional concerns raised about parts of the proposed framework.
ETEK calls for one digital process
The Cyprus Scientific and Technical Chamber (ETEK) backed a unified, fully digital process for managing jointly owned buildings. It said the process should be consistent and should not add costs for those affected.
ETEK also warned against fragmenting services among five separate administrative structures. Where a building already has a management committee, existing tools and arrangements should be taken into account, it said.
Banks raise concerns about communal charges
The Cyprus Banking Association supported modernising the management framework but raised legal concerns about some of the proposals.
It questioned a provision that would require outstanding communal charges to be settled before a property can be transferred, warning that this could complicate property transfers. The measure needs further assessment before the legislation is finalised, the association said.
Under proposals being considered, a management committee could be required to provide confirmation when a sale contract is deposited or a unit in a jointly owned building is transferred. The confirmation would show that communal charges have been paid or, under some parliamentary proposals, that an agreed repayment plan is in place.
Insurers flag cover and duplicate costs
The Cyprus Association of Insurance Companies raised concerns about insuring buildings without a certificate of suitability. It also called for the relevant authorities to be informed about a building’s insurance cover and for records to be kept up to date.
The Pan-Cypriot Association of Insurance Intermediaries said some cases involve insurance for both the whole building and individual apartments. This can lead to overlapping cover and potentially duplicate costs. It called for insurance to be considered at building level and raised concerns about the right to assign insurance proceeds to banks.
MPs urge clear rules and practical support
Committee chairman and AKEL MP Aristos Damianou welcomed progress between the Ministry and the DLGOs. He said the three-week period would allow the draft laws to be updated before clause-by-clause scrutiny begins.
Damianou also described the existing framework as outdated and difficult to apply, saying thousands of people are affected. The Interior Ministry has requested until the 29th of the month to address issues concerning dangerous buildings.
DISY MP Nikoleta Constantinou said it remains to be seen whether the central government will provide the support the DLGOs need. She said the final framework must protect owners’ rights, support good administration and be workable in practice.
ELAM MP Andreas Papacharalambous called for agreed measures to be backed by practical action. He highlighted wider powers for management committees and technical building inspections, describing them as similar to an “MOT” test.
DIKO MP Panikos Leonidou said technical and financial issues appeared to have been resolved for the initial implementation period. He urged that the bill reach the House plenary as soon as possible, pointing to difficulties management committees face in maintaining buildings and dealing with dangerous or derelict properties.
Three weeks to submit final proposals
The committee’s discussions highlighted the need to define the DLGOs’ responsibilities, complete and test the required software, and establish a consistent management process for jointly owned buildings.
Constitutional questions, property transfers, unpaid communal charges, insurance and dangerous buildings still require consideration. After the three-week deadline for final proposals, the committee aims to update the legislative texts and begin clause-by-clause scrutiny.
The stated aim is an enforceable framework for a problem that has remained unresolved for decades.
Translated and adapted from an article published by StockWatch
