Frequently Asked Questions
Management of Community Buildings
The law does not provide for such an arrangement. The law provides that every building should have a management committee responsible for the Common Areas Management. If, however, the General Assembly decides to entrust the management of the building to a reliable and credible organization (Company), then it must be done, right from the start, with the establishment of clear rules, transparency and information. In this case the Company will be paid. Additionally, the Company undertakes the task of collecting the common charges and solving all the other problems that may arise.
According to the law SHARING Building 6 (I) 1993, all common charges are estimated based on the square meters of each unit and its value. All is done in accordance with the directions of the Director of the Cyprus Real Estate Registry. In the event of non-title existence then the price is agreed based on the square metres (Value on joint ownership of the Building). Specifically, the Real Estate Registry determines the percentage of the jointly-owned building based on the value of the unit in relation to the whole building (taking into account the square meters).
Every month our company sends a detailed statement of common charges. In this detailed statement you may find all shared expenses concerning the specific month as well as the rest amount of the fund for current expenses or capital expenditures. The Law provides for a quarterly budget according to Standard Regulations 1993 (6).
Payment is made at our buildings bank accounts. We advise our customers to create a standing order with the bank, since the common charges are fixed according to the budget or to make electronic payments thereby reducing the costs.
This is possible. Although there is a separate Title of ownership for common areas, after the general agreement (Application Publishing License from all parties) the owners can exploit, rent or even sell some rooms. Then revenues are shared again according to the percentage of jointly-owned building.
The fixed amount is calculated based on a study made by us at the beginning of our cooperation. That is, we budget the expenses in advance for the following year. The difference between the actual charges and the calculated charges, are covered by the fund stored to cover any running costs of the building. Nevertheless at the end of every year our organization, by law, presents audited Financial Statements. Additionally, the Landed Property Law (for possession / registration and assessment) Act Cap. 224 Article 38I, refers to budget.
The final responsibility lies with the purchaser / owner who has the ownership of the property title. Our organization facilitates, however, the collection of the monthly charges from the tenant and takes care of them receiving the information. Additionally we separate Monthly Expenditure chargeable to tenants from the Capital Expenditure chargeable to owners.
The administrator must be paid because besides doing the thankless job of collecting the common charges, he should maintain the accounts. He has expenses (telephone calls, stationery, computers) and responsibilities towards others. But when the General Assembly decides that all these can be done by one of the owners for FREE, then there will be no need for a specialized Organization (Company). Our own organization aims at no charges for small buildings. In addition, with rational use and saving of energy, the monthly charges can be reduced and thus, though the particular amount paid by the unit may not change, our company is paid almost entirely by savings without changing the QUALITY.
The priority here is the proper functioning and maintenance of the project to the benefit of your own property. Everyone must face his own obligations and not the others. After all those who don’t obey the law will be brought to justice.
If there is no such agreement, there is the Law on Common Charges 6 (I) 1993 and in particular the standard rules on which the model can be applied. Where there is a General Agreement and a conflict with the law, then the legislation prevails.
Common expenses mean renewal and planning for the future. For example, the elevator after 15-20 years needs to be changed, the external appearance of the building needs maintenance every 7-10 years, the common facilities may need replacing etc. So rightly an additional rate for future expenditure, is necessary as long as this additional charge is deposited in the Special Fund and is not part of the running costs. Otherwise, in the end each owner / purchaser will incur with a relatively high cost and in the future and we will have negative reactions. In the case of renting the property, it is appropriate that the additional amount is paid by the owner. This fund is part of Capital Expenditure and as mentioned above all these appear in the financial statements every year.
The charge is calculated according to indoor areas in relation to all the roofed outdoor areas of a building. Store-rooms, covered parking areas, etc., are not included in sq. m. But it is appropriate those who have parking spaces in the basement to pay an additional amount to cover the cleaning, lift and other maintenance services for the basement which are also determined by law. Finally, the liability percentage for the jointly-owned building, apart from the square metres of the property itself, takes into account the total value which is listed on the property title and constitutes the Legal Division.
If for example a whole building is insured then there is no problem because the building is insured with all its common areas. But if a building is not insured or is partly-insure then no unit can be re-erected and especially no common areas (Stairs, Elevator, etc.). In addition, all the owners should have their properties insured against “Fire” and must inform the management committee for that because the law provides security to all. Additionally, you can get advice from our company and consider the insurance of the whole building (jointly-owned areas and private) which will certainly be less expensive.
The replacement cost should include the demolition of the existing unit, new licenses and architectural plans plus VAT and new cost after 1-1½ year. So the additional 25% is the minimum additional costs and the cost will be re-calculated every two years at least and especially for the square metres of the jointly-owned building. (Moreover, the Insurance Companies give their offers with transparency).
The provision of the Law on common expenses says that first of all the Management has to cover the cost and then take legal action against any unscrupulous owner.
The best thing, at the stage before the issue of a separate Title Deed, is the seller / developer to assume responsibility of the management of the building for that period until the Issue of Insurance Policies. The document of sale, however, should make it clear that the non-payment of Common Area Maintenance Charges (even if the buyer has a complaint) constitutes a disruption of the sales document in its entirety, and the seller / developer has the right to get back the property etc. This is a means of coercion for unscrupulous tenants / owners, and this is also applied to other costs and taxes. But if there is a Title Deed then things are very difficult, because the only way there is for solving the problems is the Legal Action for the collection of charges.
Check what the General Agreement says. If no animals are allowed, then you’re wrong, because you have violated the General Agreement. But if the General Agreement does not mention anything, then you have the right to keep your dog, provided, of course, that it does not cause disturbance, fear to others (for which there is other legislation for nuisance etc). It’s important for the pets to be clean as stated in the Local Authority (City Hall) and to be vaccinated. However, the pet is definitely prohibited to roam in public areas and soiling in its passage. Besides, there is the relevant legislation of the local authority for the dogs, Law No. 184 (1) / 2002..
No, because when you bought the apartment you should have asked about expenditure and charges. Besides, as the apartment is of certain age it is expected that you had bought it at a low price. Finally, you should have asked the Organization (company) or the Managing Committee of any charges that the property has, as it was done with other taxes.
It would be wise to find an expert Organization (Company) that through established and good practices will reduce continuously the costs and increase the quality of life in economical ways. We suggest that a General Assembly is organized immediately and ask for Transparency!
The Organization, having inspected the building and collected all the necessary information such as: electricity consumption throughout the year, Insurance costs, cleaning, maintenance of elevator and garden and other necessities, adds all these and then divides them by 12 months and thus we have the budget. Occasionally this is evaluated and adjusted if necessary, and at the end of the year the financial statements are presented with transparency. All these apply to the monthly expenses, whereas the Capital Expenditure or Reserve Fund are agreed at the General Assemblies.
According to generally accepted tactics the person whose flat has the problem pays for the damages and repairs (i.e. the person who has the leaking pipes). The above problem should be dealt according to the building regulations. In addition, conflicts must be resolved according to the insurance policy and even better according to multi-insurance policies.
I. The hot/gold water pipe in flat A is leaking into flat B then the owner of flat Α must immediately stop the leak and repair all the damages caused to flat B.
II. The insulation against water on the roof of the building was not properly maintained so rain water enters the penthouse. Then all the tenants/owners (the building management committee) is responsible to stop the leaks immediately and repair the damages in the penthouse as well as maintain the roof insulation against water.
III. Unfortunately there are disputes about the drain system, which the insurance companies do not include in their policies. In this case the leak should be located and if it is not clear where the leak comes from then all tenants/owners are responsible. For example, if the tenant/owner in flat A does not maintain his/her plugholes and every time he/she has a bath the water leaks into flat B then the tenant/owner of flat A is responsible for the leak. In the case where there is a blocked drain somewhere in between the flats and both flat A and flat B are flooded then all tenants in the building are responsible for the leakage (as it was the case with the roof since the drain system is common for all).
According to the law it is the flat owners duty to keep in effect the Insurance Coverage which can cover for all the above damages and repairs.