Frequently Asked Questions:
DOES THE LAW REQUIRE THE EXISTENCE OF A MANAGEMENT COMPANY FOR MANAGING A BUILDING/COMPLEX/BLOCK OF FLATS?
It’s not mandatory. What is compulsory by Law for any building/complex/block of flats is to have an Administrative Committee which will be responsible for the administration of the communal areas. The Administration Committee could then assign Management Company to undertake the administration of the building/complex/block of flats.
HOW ARE THE COMMUNAL EXPENSES CALCULATED?
The Communal expenses are calculated according to the square meters of each unit, in accordance with the provisions under Immovable Property Law 6 (I) of 1993.
HOW A MONTHLY FIXED AMOUNT OF COMMUNAL CHARGE IS ESTIMATED?
A monthly fixed amount of communal charge is estimated according to the expenses of the building of the previous year. The difference of the actual expenses from the estimated expenses is the reserve fund account for future expenses (maintenance and technical repairs).
DO I HAVE TO PAY THE MONTHLY ELEVATOR’S MAINTENANCE FEE SINCE MY APARTMENT IS ON THE GROUND FLOOR AND I NEVER USE IT?
YES. According to the legislation regarding the jointly-owned building everyone must pay for communal areas and communal facilities, despite if they use it or not.
IF THE APARTMENT IS NOT INHABITED FOR SOME MONTHS SHOULD I PAY?
The communal expenses should always be paid whether or not the apartment is habited since the building should be maintained. In case that the apartment is not sold the owner/developer is responsible for the payment of the communal expenses fee.
WHICH ARE THE COMMUNAL AREAS OF A BUILDING?
All areas of the building which are not included in the ownership certificate such as (the main entrance of the building, the garden, the elevator, the stairs, the corridors, a common use toilet, a disable’s parking place, the roof).
WHO HAS THE RESPONSIBILITY TO PAY THE COMMUNAL EXPENSES THE OWNER OR THE TENANT?
The contract between owner/tenant should clarify who has the responsibility to pay the communal expenses. Nevertheless the ultimate responsible is the owner of the apartment.
IN THE CASE THAT THE OWNER/RESIDENT OF AN APARTMENT FAILS TO PAY THE COMMUNAL EXPENSES? HOW CAN YOU COLLECT THEM?
In the case that the owner/resident of the apartment fails to pay the communal expenses then according to the Law and with the approval of the Administration Committee we take legal measures against him in order to collect the money.
WHY SHOULD I PAY A BUILDING’S INSURANCE SINCE I HAVE MY OWN APARTMENT’S INSURANCE?
When all apartments are insured as a whole, then there is no issue. However, there will be an issue when one of the apartments is not insured or the amount insured covers less than the actual cost for its reconstruction. Then the building/complex/block of flats can’t be rebuilt.