A common and costly misconception that property owners in Cyprus must possess Title Deeds before they can establish a management committee for their jointly-owned building is incorrect under current law. This misunderstanding often leaves homeowners paying non-transparent and overpriced maintenance fees to developers, when they are legally entitled to take control themselves.
The Legal Standing of Property Owners
Under the existing Immovable Property Law (CAP 224), a person is legally defined as an “owner” if they are entitled to be registered as the owner, even if the final Title Deed has not yet been issued.
This means that as long as a building has been officially registered as a “jointly-owned building” with the Land Registry, the individual property purchasers can legally form their own management committee. This allows them to take control of the building’s budget, maintenance, and upkeep, rather than being beholden to the original developer.
Problems with Developer-Managed Fees
Many homeowners, operating under the false belief that they lack the authority to act, are left paying maintenance fees directly to their property’s developer. This has led to widespread complaints, including:
- A complete lack of transparency on how fees are calculated and spent.
- Substandard and overpriced maintenance work.
- Allegations that developers are not contributing to the communal fund for their own unsold units.
Proposed Reforms to Strengthen Owner Rights
A new bill to regulate jointly-owned buildings, which is currently under review, aims to strengthen the rights of property owners even further.
Key proposed changes include:
- Earlier Committee Formation: The new law may allow a management committee to be formed as soon as a building has a valid building and subdivision permit, potentially years before Title Deeds are issued.
- Expanded Insurance Requirements: The bill seeks to expand mandatory insurance coverage for jointly-owned buildings to include a wider range of risks like floods and water leakage, and will introduce a requirement for public liability insurance. This aims to end the practice of some committees only insuring the common areas instead of the entire building structure.
Source: Cyprus Property News