A new bill regulating the management of residential complexes and the sale of residential property is being considered in Cyprus. If adopted, it will prevent owners of residential complexes from selling their properties without first settling all utility bills and receiving confirmation from the management company.
According to the proposed document, residential property owners are required to obtain a certificate from the residential complex’s management company confirming the absence of outstanding utility bills. Only with this certificate will the sale be registered with government authorities. This new regulation applies not only to those planning to sell their property but to all owners in general, with the aim of combating chronic non-payment of utility bills, which often falls on the shoulders of conscientious residents.
The bill requires the creation of a management committee in each residential complex. All property owners will be required to pay fees for common area maintenance, routine and major repairs, insurance, energy improvements, and a reserve fund. Each owner’s minimum contribution will be no less than 20% of the total mandatory fees.
If the owner fails to pay the required fees, the management committee has the right to impose sanctions. Additionally, a mechanism is in place whereby the tenant can pay the owner’s arrears directly to the committee and then deduct the amount paid from the rent .
Management committees will be able to open specialized fund accounts with licensed financial institutions. These funds will be used exclusively for the needs of the complex: management, maintenance, insurance, modernization, and other necessary expenses.
The bill also grants management companies the right to carry out repairs or maintenance work in common areas if they are critical to normal occupancy. The management committee is required to take “all reasonable steps” to notify the owner responsible for carrying out the work, giving them “a reasonable period to carry out the repairs or maintenance.”
