The percentage of Cypriot citizens who live in their own houses or apartments is 68.6%. Therefore, issues related to renting real estate are usually concerning foreigners; almost 100% of people residing in Cyprus initially live in rented accommodation. Then many, having decided to stay on the island longer, go on to buy their own property
.In the process, they often encounter unscrupulous sellers and intermediaries. This article will cover both topics and provide useful recommendations.
Buyer’s and tenant’s rights
Unregistered realtors are luring their victims with low prices and bargain offers. Their deception holds credibility because many residents believe real estate prices continue plummeting due to the pandemic.
Illegal realtor activity, which does not bring any financial loss to the government, has increased in recent years, with 20-30 lawsuits a week against businesses and individuals for violating the law on real estate activity. Even though most of them are foreigners, they are concerned that working without a license is illegal.
Social networks have become an ideal platform for illegal real estate transactions. Unregistered realtors (individuals and agencies) without licenses appear in various groups dedicated to property search and start offering their services.
As soon as one of these “agents” receive a deposit payment, they disappear. “Situations like this happen almost every day,” claims a Real Estate Agent Registration Board inspector. He reminds us that all advertisements or posts made by licensed real estate agents should always include their license number and the number in the agents’ register.
Complaints to the council come from fraud victims and licensed agents who notice suspicious activity. In addition, the council itself analyzes social media daily to look for scammers. The Estate Agent Registration Board recommends that buyers check realtors for their licenses, which the board issues yearly. These licenses must be in the real estate agent’s or company’s name.
Currently, there are 550 licensed agents in Cyprus. You can verify the agent’s license on the Real Estate Agent Registration Board website (you can find the agent’s registration date, license number, and contact details). If you encounter an unscrupulous or unregistered agent, you can file a complaint on the board’s website (http://sek.com.cy/sek) or by calling 22 666377 and 22 518451.
What does the Real Estate Agent Registration Board do?
In Cyprus, all licensed real estate agencies are subject to registration with the government legal authority under the supervision of the Ministry of Interior, the Real Estate Agency Registration Board. Its purpose is to monitor agents’ compliance and application of all relevant laws. Moreover, the board is empowered to register qualified real estate agents and to issue certificates or licenses under the provisions of the law. It also oversees the Register of Estate Agents and has the power to suspend registered estate agents if they do not comply with the provisions of the law.
Under the current law, a “licensed real estate agent” is a registered agent who is, for the time being, in possession of a valid license and is legally engaged in the business of real estate and the provision of services in the Republic of Cyprus.
The legislation for common utility payments in rented housing
The relationship between the tenant and landlord often becomes strained because the lease agreement does not state who is obliged to pay the communal utility bills. Let’s take a closer look at the requirements of the law.
The building management committee usually collects communal utility bills from tenants. However, if the apartment owner rents it out, they can include a clause in the contract stating that the tenants will bear the communal utility bills. In this case, the lease does not affect the fact that the apartment’s owner, not the tenant, is responsible to the management committee. However, if the tenant does not pay the rent or utilities or violates any other contractual obligations, the landlord can demand the amount owed in court.
If the leased premises were constructed and leased or offered for lease before December 31, 1999, and if they are located in an area subject to the Rent Control Act, then the Rent Control Court has jurisdiction over any questions relating to the lease. A question regarding the payment of rent, utilities, or sewerage charges falls within the jurisdiction of said court.
The Rent Act states that a tenant who rents an apartment, house, shop, or office and complies with the terms of the most recent lease, which is ongoing or has already expired, is entitled to benefits as long as the terms of the agreement comply with the law. The law defines ” rent ” as any amount payable as rent for the premises but does not include communal utility charges.
The law provides that, unless there is an agreement to the contrary, the tenant must pay the communal utility bills, including the cost of maintaining common areas. However, the tenant is not obliged to pay the serious costs of maintaining or refurbishing the common area’s spaces.
The term “utility payments” in the law covers charges for using common areas, their water and electricity supply, public conveniences, cleaning and maintenance of common areas, and other services.
In a recent Rent Control Court case, a legal tenant complained about the payment of communal utility bills. The court found that the claim concerned special damages, and the landlord had to prove them. The lease included a clause imposing an obligation on the tenant to arrange for his water and electricity supply, pay related charges, and register utility bills, garbage collection, and sewer cleaning costs in his name. The court held that the tenant was obliged to pay utility bills to the landlord for the rented premises. In addition, after examining the phrase “sewer cleaning,” the court concluded that it did not impose an obligation on the tenant to pay sewer costs. To avoid future disputes, the parties can leave a clause regarding sewage charges out of their lease agreements.
