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Percentage Ownership Explained

In Cyprus when a property is purchased on a Private Estate, Complex or Apartment Block which have communal areas, services and/or facilities then immovable property laws which cover communal maintenance and service charges apply to the property. Law Cap 224 and the ‘The Immovable Property (Tenure, Registration & Valuation) (Amendment) Law Of 1993 (6 (1) 1993)’.  It is a legal requirement that each and every property owner/s contributes towards expenditure for shared facilities, communal maintenance, services and utility bills.  Communal area buildings and public liability insurance is also a legal requirement.  
 
These charges are payable irrespective of whether the property is in use or vacant or whether it’s furnished or unfurnished.
 
The above laws were passed to keep Private Estates, Complexes or Apartment Blocks in a good safe condition, not only safeguarding people’s investments but also safeguarding quality of life within Cyprus.  These laws also assist in keeping Cyprus aesthetically pleasing to holiday visitors, safeguarding tourism which is a major part of the Cypriot economy.
 

When you purchase an apartment or property which has communal areas, service and/or facilities you might not have been aware of this at time of purchase, but you also purchased a percentage of the communal areas services and/or facilities of the development. This percentage ownership is very important as it is used for many things as outlined below. (Not in any specific order)

  • Calculation of what owners are legally required to contribute toward the expenditure for the running of communal areas, services and facilities of the development.
  • Calculation to establish what percentage owners’ pay toward required works on communal areas or communal services/facilities that are not covered via maintenance agreements, insurances or communal service charge fees.
  • Calculations on how much owners contribute towards communal area buildings and public liability insurance.
  • Owners voting power when decisions need to be made.
  • Insurance payout if anything happened on the development.
 
Each and every owner is legally liable to pay for maintenance and any other communal expenditure in accordance to their percentage ownership.