Tuesday, September 26, 2023

BILL PROPOSED TO END ANARCHY IN APARTMENT BUILDINGS

 Filenews 26 September 2023



Apartment owners who do not pay their common expenses will not be able to sell or rent them, according to a provision of a bill. A bill has already been submitted before the parliamentary committee of the Interior with the aim of imposing order on the anarchy observed for decades in communal buildings.

In order for someone to sell his apartment, he must obtain from the Management Committee of the apartment building a "certificate of payment of common expenses". As stated in the relevant bill, "the certificate is necessary for the alienation or lease of the unit in accordance with the Transfer and Mortgage Law, or for the assignment of the contract of sale of the unit in accordance with the Sale of Real Estate (Special Execution) Law, or for the lease of the unit, which will certify that the common expenses have been paid and no amount is due".

The bill clarifies that "the certificate of payment or the relevant certificate may also be issued by a legally authorized representative of the Management Committee".

At the same time, issues of static adequacy of buildings and consequently safety of owners/tenants will be regulated, since provisions and execution of works were included in the bill, by decision of the management committee.

The same bill provides for the prosecution of either the owner or the management committee before a Court, if they carry out works without permission from the competent Authority.

The bill that regulates the above aspects, as well as others, is "The Management of Shared Buildings and Related Matters Law of 2023". The submitted bill applies not only to registered common buildings but extends to all common buildings, which have obtained a building and division permit, regardless of the fact that they have not obtained a certificate of approval and/or have not been registered in the cadastral register and consequently no separate titles of units have been issued.

The Registration Service

At the same time, the proposed bill defines a Service for the Registration of Joint Owned Buildings and the Supervision of the Operation of Management Committees and defines its responsibilities. At the same time, internal regulations are established to regulate the management of common buildings and to define the rights and obligations of the owners, which will apply in case of non-issuance of regulations by the relevant Management Committees, under the proposed law for the regulation of any issues. In addition, the Management Committee is given the power to make expenses reasonably necessary for the maintenance and proper operation of the common areas of the common building, which the owner neglects to pay.

In the explanatory report accompanying the bill, it is stated that the purpose of the bill is to define a framework for regulating common buildings, which aims at their smooth operation, management and supervision at administrative and legal level, due to a need arising from the evolution of housing reality in the Republic.

The blanks will be filled in

The same report states that the need to amend the existing legislation arises from the weaknesses and some gaps identified in the implementation of the current legislation, including the need to define the rights and obligations of the owners of the units (owners) to regulate various issues, but also the weaknesses in the existing management practices of such buildings.

There is also a need to ensure more effective implementation of management, taking into account that unit owners evade their obligations and many properties are not adequately maintained, resulting in risks to their safety and the safety of third parties.

The Service may impose an administrative fine on a management committee or on an owner who violates the provisions of the promoted legislation or regulatory administrative act issued pursuant to the provisions of the Law or a decision of the Service.

According to the provisions of the bill, in cases where the Management Committee of a jointly owned building or the owner or owners erect or tolerate or allow the construction of a building or demolish or rebuild or make a conversion, addition or repair to the common property, without the required permit under the provisions of the Roads and Buildings Law as periodically amended or replaced, The Office may apply to the Court of Justice and, by means of a unilateral application (ex parte), request an order from the Court to remedy the irregularity or illegality established.

The powers of the Management Committee

Each jointly owned building must have a Management Committee to regulate and manage its affairs.

The Committee may:

To impose penalties on owners for non-payment of common expenses related to access or passage through common areas, for the repair of which the owner or owners of the units did not contribute.

To control, operate, manage and direct the joint ownership and the common building and to take any action necessary for the enforcement of the Standard or Internal Standard Regulations and to ensure the services specified by or pursuant to this Law or the Regulations.

To maintain in good and functional condition and maintain the common property and such other parts of the common building, improvements and appendices, or pursuant to this Law or the Regulations.

To provide facilities and services for common areas only to owners who do not owe common expenses, provided that it does not deprive absolute access to their unit.

A fund will be established

To establish and maintain a cash register and an account with a credit institution from the contributions of the common expenses of the owners of the units pursuant to Article 20 and from other amounts decided from time to time at the general or extraordinary general meeting, which in its judgment are sufficient and which may use:

For management costs and for the control, operation, management and management of the joint ownership and for the payment of insurance premiums.

For repairs, renovation, energy upgrade and maintenance of the common building.

To convene a general meeting of owners at least once a year or within 26 months and any other meeting determined by this Law or the Internal Regulations and to keep a record of its decisions.

To comply with any settlement agreement, notice, order or other decision of any competent administrative body, authority, mediation or court or person with respect to the joint ownership.

It is noted that the competent Service creates and maintains a register of common buildings, from data through the Central Information Warehouse and the contribution of the Department of Lands and Surveys, as well as the competent Urban Planning, Municipal Authorities and District Administrations of the Republic.

INTERVENTION

The law is good, but consultation is required

It is a fact that anarchy prevails in common buildings and it is appropriate to adopt legislation for safety purposes and equal treatment of owners.

It is imperative to put an end to the phenomenon of some people living at the expense of others by choosing not to participate in the common expenses of an apartment building, which either burdens others or blocks the execution of necessary works.

However, in any decisions, it should be taken into account that the capabilities of one are different and others of the other. It's one thing to start your life now and want the building you live in to look the best and other are your priorities if you're 80 years old. Above all, consultation is required. Otherwise, only friction will arise.