If you are setting up a committees in Cyprus or you are an owner these articles will help guide you on your obligations as either an owner or a committee member.
Your Cyprus Lawyers, G. Kouzalis LLC advise on Committees & owner information.
Your Cyprus Lawyers, G. Kouzalis LLC advise on Committees & owner information. All owners of properties on communal complexes in Cyprus are legally obliged to contact the Cypriot Committee of the complex and provide them with the appropriate contact information which the committee requires to perform its duties in running the complex for all owners…
It is imperative that the committee has all owners contact details not only to ensure the smooth running of the complex but in the event of an emergency situation, the committee may need to contact owners to advise them of issues.
Owners should provide the below as a minimum to the committee;
- Full name of the owner(s)
- Contact telephone number(s) of the owner(s)
- Email addresses of the owner(s)
That way the committee is able to communicate with all owners.
Furthermore, if an owner sells their property it is their obligation to inform the committee of the sale, settle their communal fees, and send an email to the new owner with the committee’s contact details (with cc’ to the owner). This ensures a smooth transition between owners and ensures that owners do not miss important bulletins or notices from the committee.
It is vital to note that, the committees can only use the information they hold on the owners to ensure that the complex can run smoothly and without hindrance.
Committee AGMS (Annual General Meetings) by G KOUZALIS LLC
If your Cyprus property is on a complex of more than 5 properties, then under Cypriot Law you are required to have a Cyprus Committee who are tasked with looking after the complex in the best interest of all owners. One of the jobs of the Cyprus Committee is to ensure that every year (within 14 months of the last AGM {ANNUAL GENERAL MEETING}) an AGM is held and all owners of Cyprus Properties are invited to attend…
The general purpose of the AGM is as follows:
- Approval of the minutes of the last years AGM.
- Accounts Presentation – the committee should inform all owners of the financial status of the committee and explain incoming/outgoing payments, the balance in the sinking fund and any large expenditure.
- Election of the new committee
- Any other business.
All owners should be invited to attend and be given adequate notice to be able to attend or appoint a representative on their behalf.
AGMS can only be held if a quorum is obtained at the first meeting.
If a quorum is not achieved then the meeting has to be postponed in accordance with the Cyprus Immovable property law.
The time it takes to have the AGM will be dependant upon a number of factors.
- The size of the complex.
- The number of owners attending.
- The time it takes to discuss ‘any other businesses.
G KOUZALIS LLC as part of the services it provides to their committees assists the majority of their committees in organising their AGMS.
If you are interested in learning more about how we can help you with your Cyprus Committee, please do not hesitate to contact us.
Setting up a Committees in Cyprus
As an owner of a property in a complex, Under Chapter 224(Article 38KB) of the Cyprus Constitution, you have the right and the obligation to proceed with the official formation of the committee. In order to proceed with the official enactment of the committee a General Assembly should be convened at a location to be determined, whereby all owners will be invited to attend and vote the official committee on board.
All owners should be advised of the General Assembly (which can be with an agm) in a timely manner in order for each owner to be able to attend and/ or appoint someone to represent them at the meeting. You should attempt (and have documented proof of your attempts) to contact each specific owner. The law states about 7 days but a month (minimum) should be given as many co-owners live abroad. Non attending owners will be able to submit their confirmation of attendance and acceptance of the formation of the committee via proxy authorizing an attending owner to be their proxy
At the General Assembly, the first official item on the list should be the voting of the enactment of the committee. Each property has 1 vote… the votes should be cast in order to elect the committee.
Once the committee has been enacted then to vote for the committee members, (usually president, vice president, secretary, treasurer and 3 ordinary members)elected, then any other business should be discussed including the maintenance / management of the complex. The budget and any items needed.
All owners are obligated to pay maintenance and management fees in conjunction with the other owners according to the percentage share of the property which they own. The communal fees cover, communal electricity and water bills, cleaning of the communal pool (if any), cleaning of communal areas, communal insurance and much more. The expenses should be shared between the owners and according to the covered sq metres.
The committee as a collective unit will then have legal powers which will enable them to proceed legally for any matter related to the project and / or ownership of the project. The legal committee, has the responsibility to act within the law, they ensure that the project is maintained correctly with all insurances paid, local and national laws complied with the health and safety of the owners and users of the complex in mind. The committee has the power to sue non payers.
Thus the official committee is formed.
