Cyprus - Pay your share of the common expenses because it could cost you

A significant number of people residing in Cyprus live in apartment buildings. It is natural that when people live together there will be a certain number of issues to be resolved.

The biggest problem facing the Administrative Committee of each apartment building is the fact that some of the tenants or homeowners do not pay their share of the common expenses.

We will stress from the start that it is to their detriment that these individuals do not pay their share of the common expenses and we will explain the reasons why.

The Administrative Committee of each apartment building has the right to take the particular individuals to court and the court will then issue a decision against them. The court decision will decide that the amount plus interest must be paid, all legal expenses of both parties and a "memo" a charge on the apartment may be attached. Unless all amounts due are fully paid the owner will not be able to sell his apartment.

Common expenses are usually small amounts. However, the legal costs for any letters and a legal proceeding in the court are quite expensive and will most likely be a multiple of the common expenses due.

Even in the event that the homeowner does not wish to sell their apartment, if they continue to not pay the common expenses that they owe, then there is also the possibility to end up in jail.

Here we should stress that these matters are handled by special courts which issue their decisions relatively quickly.

What is the conclusion?

The tenant that does not keep up with their obligations cannot escape.
We need to clarify that no-one escapes the law; Even if one sells his apartment and leaves the building the administrative committee has the right to ask the new buyer to pay and or go after the old owner.

According to the law both the old homeowner and the new one have an obligation to pay their share of the common expenses, with the latter one having the right to sue the previous homeowner.

From all these it can be concluded that the Administrative Committee of an apartment building has enormous powers; from determining the level of the common expenses and appointing a professional administrator to taking an offender to court.

It is a fact that a lot of tenants offer various excuses, so that they don't pay their share of the common expenses.

Such excuses include:

The communal areas are not kept clean, there is no water, the elevator is broken, etc.
Even if they are right, they cannot refuse to pay their share of the common expenses. On the contrary, they first need to settle their financial obligations and then try and resolve any problems that they might have.

An Administrative Committee is essential for the smooth functioning of an apartment building and no-one can escape the authority it has.

And naturally to avoid friction and misunderstandings between the tenants, it is a good idea for the management of your apartment building to be assigned to a professional administrator.

George Mouskides is Chairman of the Association for the Promotion of Property Development and Manager of Fox Smart Estate Agency.

by George Mouskides, January 12, 2010 - Financial Mirror