Common Fees ,what are they?

Questions about living in properties with shared/common facilities
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MAXWELLH
Posts: 4
Joined: 05 Nov 2009 20:33

Common Fees ,what are they?

Post by MAXWELLH »

Hello Nigel
I have an 2 Bed Apartment in a Block that has 4 x 2 Bed Apt; 2 x 1 Bed Apt; and 2 x Studio Apt;
We have had a Very Turbulent Time since September last Year(2012) We had always Paid the same amount to the Developers of €485 this also included the use of The Communal Pool. In 2011 They asked us if we would like to breakaway from them and WE agreed, so we had our own Management Company Managed by the Guy who used to Clean some of the other Blocks ie cleaning the Common areas Stairs and Car Parking etc, he did a good job and owned a Studio in My Block, so He took over the Task of Managing with me Helping and supporting Him. The First year, up to Sep 2012,we all Paid the Sum of €400 each and €250 to the Developer for the use of the Swimming Pool.and everything was well, then we had our Annual Meeting in Sep 2012 ,when Gary introduced The fated m2 Calculation ,this is when everything went AWRY. he brought in a sum of €1000 Contingency Fund and with all the other Bills ie Electric and Water and Lift etc etc , the 2 Bed had a Bill of nearly €729 PLUS €250 for the Pool, needless to say we all finished up storming off in Different Directions, and to the Present Time ie Sunday 24/02/2013 I have tried along with Gary to agree to some kind of Compromise,we have ,to Date reached Two Proposals the last being on Sunday ,when we had a Vote of 6 to 2 in Favour of ,but two Apts, a 1xBed & Studio again turned it down ,they insist upon following the "Cyprus Law" of everything being on the m2 Basis, The actual Compromise we Reached was to pay everything by m2 ,and the only things to be Paid on the Equal Payments Basis would be The Contingency Fund and Gary`s Management Fee,which he By the Way agreed to. BUT again they said NO, we Don`t have a Proper Management Committee as yet but intend to, in the next week or so , My Question to you is. Do we have to include this Contingency Fund and His Management Fee in the M2 Calculations ? Wonder if you can throw a bit of Light on this Situation ,I am a Pentioner ,as are most of the Other 2 Beds, and can`t really afford the Massive Increase he has indicated he Requires.
Thanks Nigel
Kind Regards
Maxwell Hannah ( Ayias Kendeas Court; Liopetri)
PS So Sorry This is such a lengthy email
Nigel Howarth
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Re: Common Fees ,what are they?

Post by Nigel Howarth »

Hi Maxwell,

I'm afraid that I cannot give you a definitive answer on this.

The law states that communal fees are based on the relative size of properties. So a property measuring 200m2 will contribute twice as much as a property of 100m2.

But in addition to the law, there are a set of regulations decided by the majority of owners.

Some lawyers say that these regulations can change the way fees are apportioned, while other lawyers say the way the fees are apportioned cannot be changed.

Currently, there is no definitive ‘right’ or ‘wrong’ way of apportioning fees. The only way it can be decided is by the island’s Supreme Court – and for that to happen, someone will need to take their case to the Supreme Court and set a precedent.

As for contributions to the Contingency Fund, they should be apportioned on the same basis as the rest of the management fees.

(Incidentally, it's essential that you establish a Management Committee - everything you agree before then cannot be enforced).

Regards,
Nigel Howarth
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MAXWELLH
Posts: 4
Joined: 05 Nov 2009 20:33

Re: Common Fees ,what are they?

Post by MAXWELLH »

Hi Nigel
Thank you for your reply, SO can I understand that unless we have a Management Committee Formed they cannot enforce anything upon us, ,and THE CONTINGENCY FUND has to be Paid by the m2 basis,and not on an equal basis. what about the 6 to 2 vote does that not count for anything. If we do go along with paying for everything by m2, Do we (2 Bed ) have any Benefits any Power we can exercise as we Pay a much larger share that they do will we have more of a say in any matter concerning our Block.
Thanks
Maxwell
Nigel Howarth
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Joined: 24 Oct 2007 14:38
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Re: Common Fees ,what are they?

Post by Nigel Howarth »

Hi Maxwell

It's essential that you and your fellow residents form a Management Committee.

As for paying more to the management company you employ, you need to read through the agreement you have with them. As this is a management company, there is no obligation for them to comply with the law regarding the allocation of fees. The allocation of fees has to be decided by the Management Committee.

Regards,
Nigel Howarth
Independent information & advice for Cyprus property buyers
Contact Nigel Howarth
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MAXWELLH
Posts: 4
Joined: 05 Nov 2009 20:33

Re: Common Fees ,what are they?

Post by MAXWELLH »

Nigel
Thank you for reply, Sorry to harp on about Contingency Fund,but I thought as it is a Fund for US for anything that needs replacing,Repairing,or Buying for Our Block it is a Common Fund and should be Paid equally by ALL of us,and Not by m2 Basis, Some Body says I am Right ,and again some body says NO it is an m2 Calculation, That is the Reason I contacted YOU ,as you know more about all of this, I am still none the wiser ,I need a Definite answer ,Yes it is OR No it is not. This is the only sticking Point on us moving Forward in our Block. every answer I Get seems so Vague.
Thank again
Regards
Maxwell
Nigel Howarth
Site Admin
Posts: 2911
Joined: 24 Oct 2007 14:38
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Re: Common Fees ,what are they?

Post by Nigel Howarth »

Hi Maxwell

All I can give you is my opinion. As I mentioned in my earlier reply, different lawyers have different opinions on how the the Management Committee may apportion costs - and as no precedent has been set by the Supreme Court, no-one can give you a definitive answer.

The contingency fund will be used for things like re-waterproofing the roof, re-decorating the external walls, etc. The larger the properties, the larger area of external walls they will have and a greater roof area - so I would argue that the contingency fund needs to be based on the relative sizes of the apartments.

Regards,
Nigel Howarth
Independent information & advice for Cyprus property buyers
Contact Nigel Howarth
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MAXWELLH
Posts: 4
Joined: 05 Nov 2009 20:33

Re: Common Fees ,what are they?

Post by MAXWELLH »

Hello Nigel
Thank you for your advice.
Regards
Maxwell
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