Monday, November 13, 2023

LAW ON APARTMENT BUILDINGS - STORMS AHEAD RE DISCUSSION ON BILL

 Filenews 13 November 2023



Storms ahead regarding discussion on the bill concerning the management of about 200,000 units located in shared buildings, although everyone recognizes that the anarchy and disorder that prevails today cannot continue.

One of the reasons why it is necessary to amend the legislation is the fact that some do not pay common expenses at the expense of others, but also at the expense of their own safety, since non-maintenance of buildings for a long time can even create static problems.

One of the measures promoted by the new legislation under discussion in Parliament concerns the deprivation of the right of the owner to sell his apartment in an apartment building or his house (in a jointly owned complex), if he does not pay the common expenses. As has been said, some avoid paying common expenses for months or even years, at virtually no cost.

One of the players involved in the whole process is insurance companies, which are concerned about whether they should go into the process of insuring buildings that are not maintained or statically supported. Something that would convince insurance companies to cooperate is the periodic certificate of inspection of the strength of buildings, which is promoted by ETEK.

The ETSC considers the amendment of the legislation as a positive step but indicates that if the existing bureaucratic procedures are not overcome, the new legislation that will be voted on risks becoming a dead letter.

Land development professionals believe that in order for the Management Committees to be set up to function effectively, the common expenses must be paid on time, while they believe that there should be criminal liability for anyone who does not pay the common expenses that are due.

The Legislation Commissioner told Parliament that she was convinced that many people were waiting for the bill. As he said, in communal buildings there are 200,000 units and added that some apartment buildings have more than 100 apartments while there is a complex with 612 apartments.

A representative of the Cyprus Association of Property Owners said that a big problem is the non-payment of common expenses, since without them it is not possible to implement the required maintenance.

In fact, he said about some owners: "We see them coming with their cars and they do not pay the €30 of common expenses that are due to them, so not all owners face financial problems, as some claim."

One of the innovations of the bill that is being promoted concerns the granting of management committees the power to make expenses, reasonably necessary, for the maintenance and proper functioning of the common areas of the common building, which the owner neglects to pay.

This power upgrades the role of the management committees and those who have ignored them until now, if they continue with the same tactics, are very likely to be held accountable in court. The Ministry of Interior considers that the bill expands the responsibilities and powers of the management committees (their operation is imposed on all common buildings) which will act on the basis of Standard or Internal Regulations.

The bill also aims to resolve serious issues such as the non-existence of a management committee, non-payment of common expenses, insurance, partial or total destruction of the building, etc., which concern all owners of a jointly owned building.