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15th February 2025
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HomeJointly Owned BuildingsDevelopers call for jointly-owned buildings law reform

Developers call for jointly-owned buildings law reform

Mersina Isidorou, the director general of the Cyprus Property Developers Association, has called for reforms to laws governing jointly-owned buildings as the House examines new legislation to address regulatory shortcomings.

She highlighted that the 2023 law on managing common buildings, currently under review by the House committee on internal affairs, aims to resolve longstanding regulatory issues.

“The term ‘communal living’ has regrettably become synonymous with various challenges for property owners, tenants, and the broader real estate sector,” Isidorou noted.

She emphasised the need for a robust legal framework to accommodate the rapid growth in shared ownership properties.

Key jointly-owned buildings law reforms

To enhance the legislation, Isidorou said the association recently hosted a roundtable discussion with Interior Minister Louiza Zannetou, MP Panicos Leonidou of DIKO, and other stakeholders. Based on this meeting, the association, with guidance from its legal team, drafted a memorandum of proposals, which was submitted to the Interior Minister and the commissioner of legislation, advocating key reforms.

Among these, she highlighted the need to establish management committees when building permits are issued to ensure effective management of common areas. Temporary management committees should be managed by the original owner or the property developer until such time as the unit owners elect a regular committee at their first general meeting, she said.

Isidorou proposed allowing committees to outsource services, provided funds are available, and suggested that common charges be calculated based on square meterage. Adjustments could be made by the general assembly according to property usage (residential, commercial, office). She added that charges should be certified by the committee and settled within 28 days to minimise disputes and suggested charging compound interest on overdue payments.

Recognising the uncertainty of future needs, Isidorou stressed the need of mandatory sinking funds, to be maintained by management committees. These sinking funds will be topped up annually by a small percentage (e.g. 0.02%) of the property’s value based on its Land Registry valuation.

Regarding shared amenities like swimming pools, Isidorou advocated for appointing designated managers and restricting usage to private use (for family and guests) unless otherwise approved by the management committee.

To streamline management, the association proposed creating a register of common buildings, linked to the Land Registry, accessible through platforms like the ‘Ippodamos‘ system or digital IDs.

Acknowledging the potential impact on vulnerable groups, Isidorou suggested a financial assistance fund with clear eligibility criteria to support those in need.

She concluded by underscoring the urgency of creating a modern legal framework for shared buildings to improve quality of life, ensure safety, and promote sustainable development. With collective effort, she expressed confidence that meaningful reform could be achieved by 2025.

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