Cyprus moving closer to new jointly-owned buildings bill

Cyprus is moving closer to resolving longstanding issues affecting hundreds of thousands of residents in jointly-owned buildings, as related legislation enters final parliamentary committee discussions this Thursday.

The Interior Ministry has submitted a revised version of the “Management of Jointly-Owned Buildings and Related Matters Law 2023” to the Parliamentary Interior Committee, addressing concerns raised during previous deliberations.

Interior Minister Konstantinos Ioannou sent a letter to the committee outlining key amendments to the proposed legislation.

The law targets approximately 200,000 jointly-owned buildings across Cyprus, potentially affecting between 400,000 and 600,000 residents.

These properties include both apartment blocks and houses within residential complexes sold to local and foreign buyers for permanent residence or holiday homes.

New safety inspection requirements for building management

Under the proposed legislation, management committees will gain authority to conduct structural, mechanical and electrical inspections by certified professionals from the Cyprus Scientific and Technical Chamber (ETEK).

The absence of regular structural inspections has contributed to building deterioration, including balcony collapses and wall failures in some properties.

“Property owners and tenants will know where their building stands from a structural perspective,” the Interior Ministry stated in the parliamentary submission.

However, the ministry removed provisions requiring mandatory regular inspections, explaining these would be incorporated into future amendments of the Roads and Buildings Regulation Law.

The revised legislation allows management committees to conduct such inspections at their discretion, subject to available funding.

Fee structure established for maintenance and repairs

The legislation establishes three categories of fees for residents:

Heating costs include maintenance and repair of heating systems and central heating installations.

Common area expenses cover cleaning staff wages, cleaning materials, lift maintenance, electricity and water consumption, decoration of shared spaces, septic tank emptying and other service provision costs.

Additional expenses encompass insurance, general building repairs, lift repairs, plumbing and electrical installations, insulation and environmental upgrades.

Management committees will determine reserve fund amounts required for building repair purposes.

A controversial provision prevents property sales when owners fail to pay their share of common expenses.

Management committees will have authority to issue clearance certificates confirming payment of common fees, resolving transfer issues when no other outstanding matters exist.

The Attorney General’s office completed legal review of the revised bill, confirming no legal obstacles to its provisions. The legislation incorporates recommendations from stakeholders and includes additional technical improvements.

Key amendments include interpretations for the General Data Protection Regulation, definitions for building management companies and owner registries, designation of relevant District Local Government Organisations as the competent service, introduction of mediation procedures for dispute resolution between owners and management committees, and articles addressing fire protection systems and personal data protection compliance.

The Attorney General’s explanatory report states the law aims to establish a regulatory framework for jointly-owned buildings, ensuring smooth operation, management and supervision at administrative and legal levels, addressing needs arising from evolving housing realities in Cyprus.

The legislation addresses current management practice weaknesses and ensures more effective implementation, given that various unit owners avoid their obligations and many properties receive inadequate maintenance, creating safety risks for residents and third parties.

Source: https://in-cyprus.philenews.com/local/cyprus-bill-jointly-owned-buildings-regulation-200000