Cyprus Apartment Resales: Common Expenses Before Completion
DIRECT ANSWER
Before completing a Cyprus apartment resale, the parties should not treat a management committee's balance as conclusive merely because it has been issued. Obtain the applicable regulations, identify the lawful purpose of each charge, and check the prescribed area-based apportionment before agreeing a deduction, retention or payment from completion funds.
Supreme Court appellate judgment
In Glaukos Papamichael and Andreas Grigoriadis, acting as the Management Committee of Beverly, v Panayiotis Kyriacou, Civil Appeal 129/2017, the Supreme Court in appellate jurisdiction dismissed the appeal on 29 October 2026.
The Court accepted that a management committee has statutory powers to manage a jointly-owned building and maintain a fund. However, the committee still had to prove the lawful purpose of the particular contribution, the validity of the decision imposing it, and compliance with section 38ΙΑ of Cap. 224 and the applicable regulations.
The claimed amount had been imposed uniformly at €17 per month without evidence that the units had equal area or that the charge followed the prescribed apportionment. The evidential and procedural deficiencies were material to the outcome.
The Court also rejected the argument that the owner was prevented from challenging the charges merely because he had made earlier payments. Prior compliance did not, by itself, establish estoppel against a later challenge to legality.
What should be obtained before completion?
The management committee's current statement identifying the periods and amounts claimed.
The registered regulations, or confirmation that the standard regulations apply where none have been registered.
The calculation and unit-area apportionment used for the contribution.
The relevant accounts, resolutions or supporting records where a charge is unusual or disputed.
A clear separation between undisputed arrears and genuinely disputed charges for the completion statement.
Completion and client-money controls
Where liability is disputed, the sale contract or completion arrangements should identify whether the amount will be paid, retained, apportioned or left for determination. A purchaser's lawyer should not release a disputed amount from client money solely on the basis of an unsupported committee demand, and a seller should not assume that historic payment creates an admission that every subsequent charge is lawful.
The judgment is fact-specific. It does not remove the committee's statutory functions or establish that every common-expense demand is invalid. The legal and accounting evidence must be assessed for the particular jointly-owned building.
Official sources and related guidance
Frequently asked questions
Are Cyprus common expenses divided equally between all apartments?
Not necessarily. Section 38ΙΑ of Cap. 224 requires the proportion attributable to each owner to be prescribed by the regulations according to the area of the unit, subject to the applicable legal framework.
Does paying common expenses prevent a later legal challenge?
Not automatically. In Civil Appeal 129/2017, earlier payments did not prevent the owner from challenging the legality of later contributions.
What should a buyer request before buying a Cyprus apartment?
The buyer should obtain the management committee statement, applicable regulations, the contribution calculation and supporting records where the amount or allocation is disputed, together with the wider title and building due-diligence documents.
This publication is for general information only and does not constitute legal or accounting advice on a particular building, contribution or completion statement.
