Selling an apartment or property in Cyprus? One important issue that property owners should not overlook is outstanding communal fees.

Communal fees are an essential part of owning a property within a managed residential complex. These payments contribute towards the day-to-day running, maintenance and upkeep of shared areas and facilities.

However, when communal fees are left unpaid, they can create complications when an owner decides to sell their property.

At Lee Property Services, we regularly deal with communal expenses, account balances and outstanding payments on behalf of residential complexes and management committees. In this article, we explain why keeping your communal fees up to date can help make the property sale process smoother.

What Are Communal Fees?

Communal fees are payments made by property owners towards the management and maintenance of the shared areas and facilities within a residential complex.

Depending on the development, communal expenses may contribute towards:

• Cleaning of communal areas
• Swimming pool maintenance
• Garden and landscaping maintenance
• Electricity and water for communal areas
• Lift maintenance
• Repairs to communal facilities
• Insurance
• General maintenance
• Management and administration
• Regular inspections and servicing
• Other expenses required to maintain the complex

The exact amount will depend on the individual complex, its facilities, annual budget and maintenance requirements.

What Happens If Communal Fees Are Unpaid?

When an owner does not pay their communal fees, the outstanding amount becomes a debt owed in relation to the property.

Even if the property is not being used, occupied or rented out, communal expenses can still continue to be payable because the shared areas and facilities still require maintenance.

For example, a vacant apartment may still benefit from communal lighting, cleaning, security, landscaping, pool maintenance and other services.

This is why property owners should not assume that leaving an apartment empty means that communal fees are no longer payable.

Can Outstanding Communal Fees Affect a Property Sale?

Yes, outstanding communal fees can potentially cause problems during the sale of a property.

When a property is being sold, the buyer, their lawyer or other professionals involved in the transaction may want to establish whether there are any outstanding amounts connected with the property.

If communal fees have accumulated over a number of years, the balance can become significant.

This can result in delays while the outstanding amount is investigated, disputed or settled.

In some cases, the sale may not be able to proceed smoothly until the outstanding communal expenses have been dealt with.

Why Is This Important?

A property owner may agree a sale price with a buyer and believe that everything is ready to proceed, only to discover later that there is an outstanding balance of communal fees.

This can lead to:

• Delays in completing the sale
• Additional discussions between the buyer and seller
• Disputes over who is responsible for the outstanding balance
• Difficulties obtaining the necessary documentation
• Last-minute negotiations
• Potential legal costs

For this reason, it is sensible for property owners to check their communal account before putting their property on the market.

Who Is Responsible for Outstanding Communal Fees?

Generally, the property owner is responsible for communal expenses relating to their property.

However, the exact circumstances can vary, particularly where a property has changed ownership, has been inherited, has been repossessed or has been subject to previous unpaid balances.

This is one reason why it is important to keep accurate records and deal with any outstanding balance as early as possible.

If you are unsure about the position of your property, you should contact your property management company or management committee for clarification.

What If You Have Recently Bought the Property?

If you have recently purchased a property in Cyprus, it is important to make sure you understand the communal fee arrangements from the beginning.

Ask for information about:

• The current communal fee
• Any outstanding balance
• The payment schedule
• The complex’s current budget
• Any planned major works
• Special contributions or additional charges
• The management arrangements for the complex

Doing this at the beginning of your ownership can help prevent misunderstandings later.

What If You Are Selling a Property?

If you are planning to sell your apartment or house, we recommend checking your communal account as early as possible.

Don’t wait until the sale is almost complete.

Contact your property management company and ask for an up-to-date statement showing the current position of your account.

If there is an outstanding balance, dealing with it before the sale progresses can help avoid unnecessary delays.

It is also important to remember that communal fees can continue to accrue while a property is being marketed and during the period between agreeing a sale and completing the transaction.

What If You Disagree With the Amount Owed?

Sometimes an owner may believe that the amount being requested is incorrect or may have questions about previous charges.

If this happens, it is better to raise the issue as soon as possible rather than allowing the account to remain unresolved.

Ask the management company or committee to provide a breakdown of the balance so that any discrepancies can be investigated.

Keeping communication in writing can also help ensure that there is a clear record of the issue.

Don’t Leave Communal Fees Until the Last Minute

One of the easiest ways to avoid problems when selling a property is to stay up to date with communal payments throughout your ownership.

Regular payments help the management committee meet the costs of running the complex and ensure that essential services and maintenance can continue.

They also make it much easier for an owner to demonstrate that their account is up to date when they eventually decide to sell.

What About Overseas Property Owners?

Many property owners in Cyprus live overseas and only visit their apartments for part of the year.

If you own a property in Cyprus but live abroad, it can be easy to overlook communal payments, particularly if your contact details have changed or you are not regularly receiving correspondence.

Overseas owners should make sure that the management company has their current:

• Email address
• Telephone number
• Postal address
• Local representative’s details, where applicable

It is also worth arranging a reliable payment method and checking your communal account regularly.

Planning to Sell Your Cyprus Property?

If you are considering selling your property, don’t wait until the last stage of the transaction to check your communal fees.

A simple account check can help identify any outstanding balance and give you time to resolve questions before they become a problem.

At Lee Property Services, we provide professional property management and administration services for residential complexes in Cyprus, working with management committees and property owners to help ensure that communal finances, maintenance and day-to-day management are handled efficiently.

If you are a property owner and would like to check your communal account or have questions about your communal fees, contact us for further information.

Frequently Asked Questions

Do I still have to pay communal fees if my apartment is empty?

Yes. Communal expenses relate to the management and maintenance of shared areas and facilities, regardless of whether an individual apartment is occupied.

Can I sell my property if I owe communal fees?

Outstanding communal fees can complicate the sale process. It is advisable to check and resolve any outstanding balance as early as possible.

Who should I contact to check my communal fee balance?

You should contact the management company or management committee responsible for your residential complex.

Can communal fees continue while my property is for sale?

Yes. Communal expenses generally continue to accrue while the property remains under your ownership.

What should I do before selling my apartment in Cyprus?

Check your communal account, request an up-to-date statement and resolve any outstanding amounts or disputes before the sale progresses.

Lee Property Services – Property Management in Cyprus

Managing a residential complex requires more than simply collecting communal fees. Effective management involves financial administration, maintenance, cleaning, repairs, contractor coordination and communication with property owners and management committees.

Lee Property Services works with residential complexes and management committees across Cyprus to help keep communal areas maintained and communal administration running efficiently.

Thinking of selling your Cyprus property? Make checking your communal fees one of the first things on your checklist.