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Surplus Funds?

Posted: 29 Dec 2018 11:48
by J B
Morning Nigel

Our complex has ten identical houses - we all pay €500 and up to now everyone has paid in full since we took control of the management ourselves.
There is around €8K in the account

However, one owner has just sent this message and I would appreciate anyone's comments ...

Hi J B

Just to say that I have paid €250 into the Residents Association Account. This is my share of the €2,500 for this year’s jointly owned property expenditure.

Having spoken with George Coucounis, the lawyer who wrote the attached article ‘Legal Status of a Management Committee’ he advised me to raise the issue concerning surplus funds. He said that according to the law, a management committee is not allowed to keep large amounts of money in the fund and the amount that we have needs to be reduced considerably. The surplus is to be used to pay the common expenses of the jointly owned areas. Imposing further fees, whilst there is a surplus, is not in line with the provisions of the law.

https://cyprus-mail.com/2017/07/30/lega ... committee/

Regards

J C

Re: Surplus Funds?

Posted: 29 Dec 2018 19:43
by Nigel Howarth
Hi J B

The money collected by the Management Committee for insurance, maintenance, repair, etc. needs to be spent in the year following the AGM when th ebudget was agreed.

If you want to set up a 'sinking fund' you can do this by passing a motion at any general meeting of owners and placing the money in a separate bank account.

Regards,