Cyprus Property Developers Association director general Mersina Isidorou has called for reforms to jointly-owned buildings laws, as the House reviews new legislation to tackle regulatory gaps.
She pointed out that the 2023 law on the management of common buildings and related matters, which is currently under review by the House committee on internal affairs, is aimed at rectifying longstanding regulatory gaps.
“The term ‘communal living’ has, unfortunately, become synonymous with a range of challenges for property owners, tenants, and the real estate industry at large,” Isidorou said.
She stressed that the rapid growth in shared ownership properties necessitates a robust legal framework to meet the evolving demands of this sector.
In an effort to refine the legislation, Isidorou mentioned that the association recently convened a roundtable.
This event saw the participation of the Minister of Interior, commissioner Louiza Zannetou, and Panicos Leonidou, Diko MP, along with various stakeholders and association representatives.
Isidorou explained that following this discussion, the association, advised by its legal team, prepared a detailed memorandum of proposals based on the feedback and suggestions received.
This document was forwarded to both the Minister of Interior and the commissioner of legislation, advocating for several critical reforms.
She emphasised the importance of legally establishing management committees at the point of issuing building permits, to ensure the efficient management and security of common areas.
“The initial developer or land company should manage an interim committee until a regular one is elected at the first general meeting of unit owners,” she added.
Furthermore, Isidorou suggested that these committees should be allowed to outsource services, provided there is a corresponding fund in place.
On the financial front, assosiation proposed that common charges be calculated based on square footage, with the possibility of adjustments by the general assembly based on the property’s usage, whether residential or commercial.
“These charges must be formally certified by the management committee and settled within 28 days to reduce the likelihood of disputes,” she stated.
It also recommended the application of compound interest on overdue payments.
Acknowledging the unpredictability of future requirements, Isidorou emphasised the need for mandatory reserve funds, replenishable annually based on a small percentage of the property’s value as per Land Registry evaluations.
Concerning amenities like swimming pools, the assosiation supported for the appointment of a designated manager and suggested that their use be restricted to private purposes unless explicitly authorised by the management committee for public use, in accordance with relevant legislation.
The association also called for the establishment of a register of common buildings, either at the national or district level, linked to the land registry.
They said this would facilitate access by government bodies and private entities via platforms such as ‘Ippodamos’ information system or digital IDs.
Isidorou acknowledged the potential impact of these changes on vulnerable groups, such as the elderly or those on limited incomes.
The association proposed the introduction of a financial assistance fund by the Ministry of Interior, with clear eligibility criteria to ensure these individuals are adequately supported.
“The need to create a modern and functional legal framework for shared buildings is no longer an option, but an imperative priority,” she said.
She mentioned that “the problems that have accumulated over the years – from the dysfunction of management committees to the lack of maintenance and non-payment of common fees – endanger not only the quality of life of residents, but also the safety and sustainability of these structures.”
Isidorou also underlined the “critical need for a modern, practical legal framework to address the complexities of shared ownership, vital not only for enhancing the quality of life and safety of residents but also for the orderly and sustainable development of Cyprus as a modern, well-organised European state”.
Finally, she expressed confidence that “through collective effort, dialogue, and commitment, the regulation of communal buildings could be effectively achieved by 2025”.
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