Companies that call themselves "management committees" are said to be "cutting and sewing" by collecting common expenses, mainly in large apartment complexes or even houses, without giving an account to anyone. In fact, as claimed by owners who bought apartments or residential units in various mainly tourist villages, the utilities range between €1,000-€1,400, depending on the area of the unit they acquired, without being provided with the corresponding services.
As we were told, there are complexes with more than 100 units, so a company can collect between €100,000-€140,000 each year, from just one complex, employing an employee and assigning "errands" where necessary. Owners wonder whether the amounts collected are declared to the state or whether they are controlled, for example, by the Land Registry Department, which under existing legislation is responsible for the management committees. It is also worth noting that foreign buyers approached Cypriots who acquired housing in some of the complexes, raising the issue of increased utilities.
According to what we have been informed, these companies either belong to the manufacturers of the complexes or operate with their blessing, with some form of cooperation, with mutual benefit. In cases where the management is undertaken by the company that built the complex, the buyer of each unit is invited and signs a document assigning the role of manager to that company.
The same is estimated to happen with skyscrapers, so it is in the interest of some that management committees do not operate normally in the context of a new legislative regulation. After all, as we have been told, legislation still exists today, but nevertheless, another market acts extra-institutionally with uncontrolled regulations to the detriment of the owners.
Buyers indicate that it is necessary to find a way to declare the specific committees, which are not management in the sense of the legislation, illegal, given that they are not appointed by the Land Registry nor are they elected by the owners.
In these units, a person from the construction company "picks up" the owners, with a different "hat", so that it does not appear that he really belongs to the construction company and the buyer has to do with the company in everything related to the complex.
Of course, these companies are not related to companies that are entrusted by the owners with the task of coordinating many apartment buildings and perform the role of management committee.
A buyers' representative, who contacted us, argued that one reason why obstacles are created during the discussion of a bill submitted by the government and pending before the Parliament, also concerns the large economic interests affected by any approval of the legislation, the implementation of which will take the cake away from real estate management companies.
The issue of communal buildings and in particular of the management committees came back to the fore after the collapse of an apartment building in Limassol that resulted in the death of two people.
"Significant delays exacerbate the problem" admits the Minister of the Interior
On the occasion of the above incident, the Minister of the Interior, Mr. Konstantinos Ioannou, intervened with an article, through which he indicates what everyone recognizes. That is, that "the current legislative framework does not provide the necessary tools for the effective management of communal buildings, nor does it provide for adequate supervision and enforcement mechanisms". The minister added in his article that "in a country where almost half of the population lives in communally owned buildings, the modernization and strengthening of their operating framework is imperative, in order to ensure the protection of citizens".
Mr. Ioannou also indicated that: "The consequences are now evident in everyday life, affecting thousands of our fellow citizens who live in apartment buildings. Friction between tenants, non-payment of utilities, inability to effectively implement existing legislation and reluctance to maintain buildings, inevitably lead to inadequate maintenance of buildings and, by extension, to the creation of dangerous and inappropriate living conditions, with direct effects on the safety of the tenants."
The minister also indicated that "recognizing the seriousness and timelessness of the problem, a comprehensive bill was submitted as early as August 2023, with the aim of ending the existing disorder in the management of communally owned buildings and creating a modern, functional and fair framework".
He explained that: Among other things, the bill provides for the clear definition of the rights and obligations of both owners and tenants, in order to limit friction and dead-end disputes. At the same time, the obligation to create a Fixed Fund for each communally owned building is introduced, ensuring the existence of the necessary resources for inspections, maintenance and repairs.
At the same time, the role of the management committees is substantially strengthened, providing them with specific responsibilities, such as the management of the Fixed Fund and the issuance of a certificate of non-debt of common expenses, which will be a prerequisite for the sale or transfer of the residential unit. In addition, provision is introduced for compulsory insurance of both buildings and individual units, enhancing the protection of property and the safety of citizens.
At the same time, the proposed bill establishes a modern system of supervision, through the registration of jointly owned buildings and the operation of control and transparency mechanisms, under the responsibility of the District Local Government Organizations.
As Mr. Ioannou noted, "despite the efforts made since 2023, the discussion on the bill presents significant delays, which exacerbate the problem and have a direct impact on the issue of dangerous buildings".
However, the EOAs, which were in charge of the management of the jointly owned buildings, indicate that there is legislation for the jointly owned buildings and emphasize that the Ministry must implement it, through the Land Registry. The EOAs also indicate that the non-implementation of the legislation has increased the number of dangerous buildings.
