Cyprus continues to grapple with serious challenges in the management of jointly-owned buildings, as the long-awaited legislation meant to address communal fee issues remains unresolved more than two years after its initial drafting.
The original bill, first introduced for public consultation to modernize the framework governing jointly-owned properties, has since evolved into three separate pieces of legislation. Despite feedback and amendment requests from key stakeholders — including the Cyprus Association of Jointly-Owned Managers (SYDIKOIK), the Association of Cyprus Banks (ACB), and the Cyprus Real Estate Registration Council — the most pressing concern remains unaddressed: the non-payment of communal fees.
Mounting Financial Strain on Management Committees
Management Committees across the island face growing financial pressure due to property owners who refuse to pay their share of communal expenses. This widespread non-compliance threatens the insurance coverage, maintenance, and safe operation of shared buildings, unfairly shifting the burden to responsible owners who meet their obligations.
Without reliable access to funds, these committees struggle to carry out essential duties such as repairs, maintenance, and building insurance. The lack of effective enforcement mechanisms for timely fee collection leaves many committees unable to function properly.
Legal and Structural Barriers
The issue is compounded by the ongoing absence of Title Deeds for thousands of properties, preventing committees from taking standard legal measures, such as filing memos against non-compliant owners. In many cases, the only recourse is through the courts — a route that is both expensive and time-consuming, offering little relief for immediate financial needs.
Another layer of complexity arises in cases where banks or credit-acquiring companies have repossessed units. These institutions are obligated to cover communal fees associated with the properties they control, yet enforcement often remains inconsistent. This gap further deprives Management Committees of the resources needed to maintain their buildings.
Similarly, when a property owner passes away, the executor or administrator of the estate is responsible for settling any outstanding communal fees, which are to be deducted before the estate is distributed to beneficiaries.
Call for Meaningful Legislative Reform
Experts and property professionals stress that for any legislative reform to be effective, it must provide Management Committees with enforceable powers to secure communal fee payments. Proposals include administrative collection tools, financial penalties, and faster recovery procedures — all seen as vital to sustaining the long-term health and safety of jointly-owned buildings.
However, stakeholders also highlight the need for compassion in genuine hardship cases. Owners facing severe financial distress due to illness or unemployment should be given the opportunity to arrange flexible repayment plans through mediation, ensuring fairness while maintaining community welfare.
As the debate continues, the absence of clear and enforceable mechanisms risks deepening the crisis — leaving many of Cyprus’s jointly-owned buildings struggling to remain operational.
Source: Cyprus Property News