Contributions towards Communal Areas Insurance Premiums

[Ruthie]

Hi to you all,
As Secretary/Treasurer of our newly formed Management Committee, I am currently preparing figures etc., for the charges to each of the 12 flats in our block for management costs in respect of the common areas. Our Management company (the developer) will be ceasing their role at the end of September. I understand that we will need to charge each owner on a proportionate basis, although I do not feel that this is really fair, given that each owner enjoys exactly the same facilities as everyone, irrespective of the size of their individual flats. Nevertheless, the proportionate charge has been applied for the past 7 years by the developer, and it has been agreed by the Committee that this method of charging will continue as it is believed we have to do it this way in order to comply with Cypriot law.

It appears that the developer has never insured the common parts of the building. However, we are all keen to have insurance put in place and I have obtained quotes for this. My query is, should I calculate the individual charge in with everything else on a proportionate basis, or could I just divide the cost of the premium by 12 and charge the owners seperately for this?
I'm trying to keep costs down for everyone as far as possible, but am mindful that things should be kept on a fair basis. Any suggestions, please?

Many thanks.
Ruthie

[Nigel Howarth]

Hi Ruthie

Yes - you need to apportion the insurance charges on the same basis as all the other charges - according to the size of the apartments.

If you need a copy of the law, you can download a copy (in English) from my website at http://www.cyprus-property-buyers.com/f ... gs-law.pdf

You don't have a choice in the matter - you must apportion all communal charges according to the law.

Regards,

[Ruthie]

Hi Nigel.

Thanks so much for your reply. I am relieved that I have no choice in the matter really, as there will now be no doubt as to how I should proceed. Also, should this be challenged by any of our owners, I can be confident in advising them that the correct procedures have been followed.

Thank you also for the recommendation to download a copy of the law. I actually did this some time ago and found it an invaluable source.

Kind regards.
Ruthie