Members of parliament have submitted a law titled “Proposed law Regarding the Management of jointly owned buildings (Κοινόκτητες Οικοδομές )”. The purpose of the proposed law is to regulate the management of such buildings. The proposed law is deemed necessary so that, on the one hand, such buildings are governed under this proposed law and on the other hand to confront deficiencies appearing in the current legislative system. The jointly owner buildings proposed law is available only in Greek by following the previous link.
What is the problem with the management of Jointly-Owned Buildings
All such buildings must have a management committee which regulates and manages all relevant affairs. The modernization of the law is of dire need since several buildings are not maintained sufficiently. They pose a health and safety risk. Several property owners take advantage of the lax legislative system by avoiding their responsibilities, all this against the interests of the remaining property owners.
How many jointly owned buildings are in Cyprus?
In a recent statement by the Department of Lands and Surveys at the moment such properties amount to 29.000 which consist of 175,000 units. In addition to these numbers, it is estimated that another 1,000 jointly owned properties should be added with an estimated 15,000 to 17,000 units from the issue of title deeds which have been delayed.
What is proposed to change?
The provisions of the proposed law provide, amongst others, the following:
- Application of the proposed law to jointly owned buildings which have not been registered as such in accordance with the Immovable Property (Succession, Registration and Valuation) Law and which one or more units have been legally delivered to the owners. The proposed law applies before the issuance of any title deeds.
- The establishment of a Council for the Registration of such buildings and to exercise the authorities introduced by the proposed law.
- The creation of a registrar, kept by the Council, to record:
- jointly owned buildings
- Administrative committees
- Any person acting as the administrative committee
- The enactment of template rules regulating the management of such buildings. The proposed law further aims to specify the rights and obligations of the property owners, which will apply in the instance that rules have not been adopted.
- The creation of a mandatory sinking fund is introduced. A monetary contribution to be made to a consolidated fund of the administration committee of each such building. This contribution to be made by the property owners covering the expenses for the administration of the jointly owned buildings. The proposed law also creates a reserve (10%) to cover unforeseen expenses.
- The proposed law also provides an obligation to periodically carry out a civil and mechanical engineering review of the jointly owned buildings for the purpose of receiving a certificate of adequacy for the construction.
- The transfer of any property within a jointly owned buildings to be made subject to present to the Department of Lands and Surveys a certificate confirming that the dues associated with a property have been paid to the administration committee.
- The issuance of a warrant for payment of any dues towards any property owners for unpaid claims.
- Mandatory insurance of the buildings for an amount equal to its replacement for a period of twenty-five years.
- The introduction of a provision allowing a tenant to deduct any amount owed towards the administration committee from the rents due towards the property owner.
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For many years he has worked and devoted his skills and efforts towards building a successful career as a leading executive. From humble beginnings, his aim has always been to yield results; with a keen focus to attention to detail and client satisfaction. His experience has always been varied and not specific, at times he preferred it. With that in mind, he has dealt with CySEC on licensing and ongoing regulation, international private equity and credit fund managers, NASDAQ and NYSE listed companies occasional millionaires as well as self-made millionaires. His passion though is difficult transaction work organizing and deploying people for a common goal. Harris enjoys reading and studying the Cyprus law and sharing that information on this website.