Cyprus is moving to address the longstanding issues of apartment building management through new legislation, as thousands of citizens living in such properties face challenges due to inadequate regulations and poor enforcement of existing laws.
Parliamentary Interior Committee chairman Aristos Damianou announced that the bill’s examination will proceed swiftly, with discussions involving all relevant government departments and organisations having begun yesterday.
The proposed legislation aims to end the current state of disorder that causes constant friction between property owners and leaves thousands of buildings poorly maintained.
A key innovation of the bill grants management committees the authority to undertake reasonably necessary expenses for maintaining common areas when owners neglect their financial obligations.
The Interior Ministry notes that the bill expands the responsibilities and powers of management committees, which will become mandatory for all jointly owned buildings and will operate according to standard or internal regulations.
Key provisions of the legislation include:
- Establishment of a Registration Service for Jointly Owned Buildings and Management Committee Supervision
- Mandatory registration of buildings and management committees
- Implementation of standard internal regulations
- Compulsory insurance requirements
- Clear definition of unit owners’ rights and obligations
The bill extends beyond registered buildings to include all jointly owned buildings with construction and division permits, regardless of whether they have obtained approval certificates or separate property titles.
The legislation addresses critical issues such as non-payment of common expenses, insurance requirements, and building damage, responding to concerns raised by the Land Registry Department about weaknesses in current management practices and risks to safety.
The Department of Lands and Surveys notes that the new framework aims to streamline its responsibilities to focus solely on possession and registration matters, given the increasing workload in this sector.
UPDATE SEPTEMBER 2025
Apartment owners who fail to pay communal fees will be barred from selling their properties under new legislation being debated in parliament.
The bill requires property owners in apartment blocks to obtain certification from management committees confirming all communal fees have been paid before any property transfer can proceed.
The measure aims to end the practice of some owners avoiding payments at the expense of other residents.
Certificates of payment issued by management committees will serve as prima facie evidence and be accepted by public authorities, particularly for property sale purposes.
New enforcement powers for management committees
The legislation extends beyond property sales, granting management committees authority to impose sanctions on defaulting owners related to access or passage through communal areas where owners failed to contribute to repair costs.
Under the proposed law, every apartment block must establish a management committee to regulate and manage building affairs.
Committee compensation will be determined by property owners’ general assembly decisions, with costs shared among all owners as part of communal expenses.
Management committees may impose financial penalties on owners who refuse or neglect to pay their proportional communal fees or expenses.
When an owner has leased their property but fails to pay dues, tenants may pay the owed amount directly to the management committee and deduct it from rent payments to the owner.
Financial powers and reserve funds
The legislation grants management committees authority to establish and maintain funds in licensed credit institutions using communal contributions decided at general or extraordinary assemblies.
Committee funds may be used for management expenses, building control, operation, direction and administration, including insurance premium payments. Money can also fund repairs, renovations, energy upgrades and maintenance of apartment blocks.
Management committees must establish a permanent reserve fund from communal contributions equal to at least 20 per cent of each owner’s contribution amount for building repairs or maintenance purposes.
Court intervention and recovery powers
With 75 per cent owner approval at general assemblies, committees may determine additional contributions beyond standard amounts for building needs.
They may also contract loans for repairs, renovations, energy upgrades or maintenance following 75 per cent owner approval.
After obtaining court orders, management committees may recover temporary possession of units or spaces where owners fail to address immediate damage repairs or have abandoned properties, enabling necessary repairs or maintenance work.
Committees may recover through legal action or mediation settlement agreements any funds spent on repairs or work undertaken to comply with notices or orders from administrative bodies, courts, mediation authorities or other relevant entities.
Notice requirements and binding decisions
Before undertaking repairs or maintenance, management committees must take reasonable measures to request action from responsible owners via email or door notices, providing reasonable time for completion and securing court orders for temporary possession when necessary.
All notices or service of documents must be delivered via registered post, email, court or private bailiff service, or posted on building entrances or unit doors.
Owner decisions will bind all proprietors, whether they owned property when decisions were made or acquired ownership subsequently. All owners may inspect decision records at reasonable times.
Each owner’s proportional share of expenses will be determined by unit area, excluding remaining undeveloped development rights.
Provincial oversight
Management committees established in apartment blocks will be supervised by the Registration and Supervision Service for Management Committees of Apartment Buildings, operated by relevant District Local Government Organisations.