- within Real Estate and Construction topic(s)
- within Real Estate and Construction, Insurance and Transport topic(s)
The Cypriot Parliament is facing significant changes in legislation concerning jointly-owned buildings and property transfers, with the aim of addressing serious problems related to non-payment of common expenses and the inability to enforce existing provisions.
The new bill, which is over 80 pages long, is being discussed by the Parliamentary Committee on Internal Affairs and is expected to be voted on during the current session. Its purpose is to modernize the management framework for jointly owned buildings, strengthen the legal status of management committees, and ensure the effective operation of apartment buildings and complexes, where almost half of the country's population lives.
One of the most significant changes is the obligation to present a certificate of payment of common expenses in order to complete the transfer of a property. The Land Registry Department will not be able to proceed with the transfer of title unless a relevant certificate is provided by the Management Committee or the building manager.
Until now, in certain cases, buyers could benefit from exemptions or reductions in transfer fees, even if there were outstanding utility bills. Under the new regulations, this is no longer the case. The existence of outstanding common expenses cancels the right to exemption, regardless of whether the transaction is subject to VAT or meets other conditions.
The bill provides for the creation of a Registration and Supervision Service for Management Committees, as well as the implementation of standard internal regulations to regulate the rights and obligations of owners. The committees will be able to impose financial penalties, register encumbrances (memos), and take legal action to collect debts.
These changes are expected to improve the management of common areas, enhance transparency in real estate transactions, and protect buyers from unforeseen financial obligations. At the same time, they create a stricter and fairer framework as far as owners who neglect their obligations are concerned.
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