Community Charges (Non Payers)

i think i saw an article on facebook about how to deal with that very problem = will seek it out and post  - i hear it is a very big problem here - i know one complex who has taken steps to make it harder for them to use the complex  = a security key fob to control an access barrier - and it also controls access to communal toilets, showers, plus internal gym and indoor pool - no fees paid no fob no access to facilities - thus making it harder / awkward for those who dont pay and rent out their apartments

ALSO FOUND THIS AND REPOSTED IT FOR YOU FOR IDEAS - COMMUNAL EXPENSES ISSUES
Answering Objections: Other owners don't pay their communal maintenance charges and get away with it, so why should I pay my Communal Fee?
In this article I discuss how to answer one of the most common objections given by owners who have stopped paying their communal maintenance fees. If you have been involved in collection of the communal fund, you will have heard this objection.
Getting to the Source of the Problem
There is a false, but very common opinion that owners of communal property in Cyprus can get away with not paying their apartment building or resorts communal maintenance fees.
While collections is a tough task requiring many different methods and tools (check out my other articles for advice on how to do this) the law is on your side.
Despite what others may say, if you know the regulations, your rights as a committee and take the appropriate steps and actions it's actually quite hard to get away with paying communal maintenance charges.
So what's the problem then?
Simply, Owners and committees don't know their legal rights, obligations and how to use the methods and tools available to them to effectively make owners pay their communal fee and collect the communal fund.
Note: This is one of the primary reasons for the founding of theCyprusCommunalGuide.com
If using ineffective or in some cases nearly non-existent collection methods, or you are in the process of chasing debts but are not effectively communicating to the owners who do pay what you are doing to collect the arrears, the owners who do pay get frustrated at the ones ‘getting away with it' and make this objection.
How do you deal with this objection?Your 1st Answer. Make sure you inform them of the tools you are using to pursue the debtors.
Providing your committee is legally elected at a properly formed AGM, and the communal fee is charged correctly, no owner should be getting away with non-payment.
Unlike Credit Cards, payment of the Communal fee is a legal obligation set out in the core property law. Any debts can be secured by court order against the property similar to a mortgage, or council rate arrears.
Getting collections from debtors takes time, but it's important for owners to know this process has been started. Whether you have in-house credit control, use external debt collectors or jump immediately to legal action.
Quick Note: I have a juicy article coming soon about improving collections without the delays and costs of legal action so don't forget to check back, or like our Facebook page to get an update when its released.
Let them know that debtors pay for these delays as you can add costs for lawyers, debt collection fees etc. to their debt which can be a significant increase.
Your 2nd Answer. Use my favorite ideal-world/real-world statement.
In an ideal world everyone would pay on-time and in full, but we live in the real world.
Some owners will delay or avoid paying their communal fees, and we all know it takes time to pursue these.
This means while the committee takes the action against the debtors the burden falls with those that do pay to cover the shortfall.
It's not ideal, it's not fair or pleasant but unless people want their buildings to go derelict it's what needs to happen.
By stopping paying their fees, all they will do is add to the problem, and rack up a load of extra costs in the process.
If they still object.
This will give you the ideal opportunity to demonstrate that you do not ignore the debtors, and how much work goes into collecting. Show them every step by running them through your collections procedure until they do pay

ALSO FOUND THIS ARTICLE FROM 2012 - http://www.news.cyprus-property-buyers. … id=0013190

Hi Toon,
A newbie here.
I was wondering if you could offer some advice regarding non payers of communal charges

I came across your post from 14 July 2017 that you was discussing. You then said you would post some further news/updates at a later date about these issues but I haven't been able to find them.

I am a committee member of a private complex in Paphos. It's all legal and we held our AGM as recently as last week but we are having major issues this year with non payers.
One of the main problems we have.... is that the 'original' developer has been gradually been buying back properties ( that in the past WERE payers) and just renting them out and this also adds to the list.

Then we have the untraceable owners where we have no idea where they live.
We are looking at contacting the land registry to see if we get any joy.

All the committee members have their title deeds if that presents any issues.

Toon....any help or advice you can offer would be appreciated.

Thanks,

Regards Mike

I think its a big problem  and getting bigger all the time as more and more people find it harder to live here or rent their properties out thus they sell-up....and move on.

Surely in your case the developer who is buying up the properties has to accept he has the responsibility to pay his/her share of the communal expenses for the properties he has bought back empty or not -0 i can only suggest a lawyer should be consulted.....

other than what ive said above gleaned from the internet there is not much i can offer by way of answers = i wish there was  i know a few people on this positions already and they've got no answers either...

not paying the communal expenses simply results in degraded properties eventually becoming run down and derelict with little or no chance of selling... not good for anyone.

we dont own we simply rent, we never rent on a complex for these very reasons and others too...  The more i hear the more i am against buying anything here but renting carries risks just different ones.... but it works for us for now

Good luck Mike

Thanks for your reply Toon

Mike

just a thought  maybe thats the developers plan to eventually buy back the whole lot by making it untenable to live there  - thus he gets the properties back and rent them out at extortionate rates.????

Maybe this may help - it might be a good idea to get a copy - - https://www.cypruscommunalguide.com/the … al-launch/

is there an insurance policy like "common insurance"  available to owners of complex properties

Not too sure about the 'common' insurance

but I do appreciate your input Toon

its worth asking a broker - it doesnt stop the problem - - - but it may help insure against future defaulters  -ok it will cost the owners but it may mean that the good paying owners dont get penalised for those who default... but i dont know how you can stop owners defaulting in payment - of course you may find that some owners who know this is in place will  not pay knowing that the insurer will pay

you may wish to invest in a security system with fobs to access key parts of the the complex... these can be reprogrammed at will and handed out only to those who pay.... thus hindering anyone who doesnt pay making their properties not so attractive to potential renters  = am thinking of controlled access to communal showers toilets  and access by car to the complex. 

good luck

AN INTERESTING THREAD OF RESPONSES FOR YOU ON FACEBOOK....  https://www.facebook.com/groups/3725821 … up_comment

Hi Toon,

I have a question regarding unpaid communal charges by the previous vendor (nearly €2000) am I liable for these charges? I have been paying my fees since settlement date. I purchased property in Larnaca last Oct 18. Committee are saying I am liable. Contract of sale saying previous vendor liable to pay all taxes etc. before settlement.

Thanks in advance.
Adrian

I would say stick to the contractual agreement you have on the sale of the property to you....

If the committee of the complex have failed to obtain the fees due by the last owner then that is their problem not yours - do they have an agreement with you for the outstanding amounts,  or is there something in the communal agreement stipulating that the new owner is liable for any outstanding fees when a sale takes place.

i would ask for a copy of such an agreement and for it to be proved to you that you as the new owner are liable  - if this is the case then I would take it up with the lawyer who handled your purchase as to why this wasnt identified as a liability?

Good luck

Thanks Toon, much appreciated.

Hi toon.

I brought a property in paphos 15 years ago.ive always paid my communal charges.We got a lovely Cypriot lady who collects the monthly charges.

I was asked to pay 500 euros for the painting of the outside of the block last year.They are asking for another 500euros for the painting of the inside.

Now I've got no problem paying.Does the monthly communal charges cover these cost.

Does the communal charges cover roof damage

Your complex should have an elected committee by law.... And they decide what is and what isn't included in your communal fees .... Painting is usually an extra as is roof damage ..but.depending on the cause it may be covered by the complex insurance cover.

I would be asking the committee