Withholding communal fees

[brian newman]

2 residents , who have owned property for 25 years on a small development in latchi have withheld thier community fee.
The committee, had a new sewage system installed (€12500), and we paid for it.In 2019 during covid the system failed, apparently it flooded!
One of the Russian owners and chairman of the committee got it fixed, and requested payment. We refused to pay, and money was taken from the funds to pay him back, without our knowledge.
We have asked for details of the equipment, warranty, maintenance schedule,and what happens if it goes wrong again?
The committee also have non residents voting by proxy .We have asked for copies of the contract details, as we don't know as non residents what financial limits are placed on them
The management company have been unhelpful
We have agreed to pay subject to seeing the above
What is the legal position

[Pantheman]

2 residents , who have owned property for 25 years on a small development in latchi have withheld thier community fee.
The committee, had a new sewage system installed (€12500), and we paid for it.In 2019 during covid the system failed, apparently it flooded!
One of the Russian owners and chairman of the committee got it fixed, and requested payment. We refused to pay, and money was taken from the funds to pay him back, without our knowledge.
We have asked for details of the equipment, warranty, maintenance schedule,and what happens if it goes wrong again?
The committee also have non residents voting by proxy .We have asked for copies of the contract details, as we don't know as non residents what financial limits are placed on them
The management company have been unhelpful
We have agreed to pay subject to seeing the above
What is the legal position

I think you should be consulting a lawyer for any legal advice and not a forum!

[Nigel Howarth]

Dear Brian

Welcome to the forum.

The Management Committee (MC) can request and pay for contractors to carry out remedial work, with monies collected from the owners as part of their communal fee contributions.

Regarding the new sewerage system, the MC should have requested warrantees on the labour and equipment, maintenance, etc. Do you know why it flooded? I know some people flush disposable nappies and other items that will cause the system to block and flood.

Currently, voting by proxy is permitted and you can find an English translation of the law at Section 38 of the Buildings Under Joint Ownership Law, which explains the obligations of owners and the MC in some detail.

To recover the monies owed, the MC should pursue the non-payers through the court.

What does the Management Company have to do with this?

Regards,

[brian newman]

The plant flooded because there was no drainage for surface water.
We have withheld payment as it would appear that the equipment has not been installed and properly commissioned. We have always paid over 25years of ownership!
We can't get details of the sewage plant installed, site of warranty, or how its been repaired.
Many residents ( not us) rent villas and all sorts end up blocking the system. We don't know how many people the system caters for.
The management company have no idea of the system installed, but have maintenance 2 to 3 times a week which is costly
We are prepared to pay but feel it totally unacceptable not to be given any information..what happens if it breaks again..another €x thousand!
We understand the proxy vote is valid
We want to see the paperwork authorising it.
It seems that we are banned by the committee from seeing it as its declared confidential.
Brian

[Nigel Howarth]

Hi Brian

I've been looking through your posts. Have you seen the problem for yourself?

Typically, a sewerage system is just a series of pipes that direct the brown waste to a septic tank. The tank retains the solids and the liquid drains into the subsoil. The tank has to be emptied occasionally, but apart from that there's no maintenance a such. It's possible that one of the pipes carrying the sewage to the tank may have broken (or blocked as I mentioned earlier) or the subsoil has become saturated and cannot absorb any more liquid.

More sophisticated systems use a biological waste, but as your development is 25+ years old, I doubt you have one of these.

What does your sewerage system actually do?

What is the management company's role in all of this?

You should be able to see the proxy votes, which mist he signed, at the AGM.

Regards,

[brian newman]

Thanks for your reply.
The original system was installed 25 years ago for Aristo by z and x.
It was sub ground with electrics and failed regularly. The maintenance was done by PFA, who just filled it with chemicals, and the stench was aweful and the sewage backed up the pipes
In 2019 a new biodisc system and new electrics fitted.The system was ordered by the committee, and installed. We paid for this and maintenance. Unfortunately it would appear it was not commissioned adequately. Installed underground with no surface water drainage or foul. There was a warranty, invalidated by the flooding.
I saw the system after installation and commented on the back up of foul coming out of the drains..due to the main pipes being full of roots. Had to get the muckta out to deal with the health hazard.The committee did nothing..Obviously not checked after installation.
During covid the system broke from flooding, and the Russian chairman, got it fixed.I asked him to wait as nobody was there and it could be looked at. He went ahead and got the blowers fixed anyway.
Both of us villa owners are unable to see the manufacturer, warranty, and maintenance schedule. Unable to see the commissioning documents, inspite of asking.
The committee have breached thier fiduciary duty of care.
We are prepared to pay the small outstanding fees on viewing the documents.
The management company organised bi weekly visits to the pump. This is totally unnecessary as modern biodiscs require little maintenance.
When asked for the manufacturer schedule for maintenance, he didn't have it , and said he thought it was like a pool!
We have been charged for maintenance.
There is a hose pipe currently sticking out from the pump house.
There is still no drainage should it flood again.
We have a system for 8 villas. Unfortunately many are rented out.
We dint know the capacity of the system
As for the proxy.We again have no problem with that, however we would like to see the agreement and its terms. We are told its confidential..This is my home, and I don't have unlimited sums to pay out on further maintenance if a proxy can authorise " any amount"
I understand that under Cyprus law we have to pay.It seems unlikely that any court would not ask for the details we requested from the committee. Its our opinion that they have , with the management company failed to look after the best interests of the residents.

[Nigel Howarth]

Hi Brian

This is more complex than I thought. As Pan suggested earlier, I suggest you seek legal advice.

If there are roots in the pipework, clearing them out is only a temporary fix - they'll grow back. The damaged pipe needs to be replaced.

I'm not sure what you mean by "a proxy can authorise any amount". The management committee can only collect monies for insurance, maintenance and repairs to be carried out in the year and has to get money for unscheduled repairs from owners.

What they should do is set up a 'sinking fund' - see Communal fees – sinking fund to pay for unscheduled maintenance and repairs (such as your sewerage system). I suggest this should be in the region of 10% and will avoid you and other owners having to cough up large sums for unscheduled maintenance and repair works.

Regards,