A new bill currently discussed in parliament proposes that homeowners will not be able to sell their property until their utility bills have been settled and they have obtained a respective confirmation from the management committee of a residential complex.

According to the bill, the confirmation needs to be obtained and submitted to public authorities if the owner intends to sell his or her property. But it also covers homeowners not intending to sell their property, to battle the phenomenon of apartment owners in residential complexes not paying bills at the expense of others.

The bill outlines that residential complexes are obliged to establish a management committee for regulation and management, for which a fee considered as part of the common expenses will need to be paid by the owners.

The committee would then be able to impose sanctions on owners for non-payment of common charges related to common areas and repairs if the owners refuse or fail to contribute accordingly.

Should the owner be renting a property and not pay the amount due, the tenant may pay the amount owed by the owner of the unit to the management committee and then deduct the amount paid from the rent.

The legislation would allow for the committee to then set up a fund account in a licensed credit institution to receive and access the money.

Based on the proposal, the management committee could use the money to cover several costs concerning the building.

These include the management and administration of the jointly owned property, payment of insurance, costs for repairs, renovation and energy upgrades or maintenance, and maintaining a fixed amount of money as a reserve fund.

The share of each owner must amount to a minimum of 20 per cent of the total amount of the common contribution.

According to the legislation, the committee has the right to carry out repairs or maintenance works in common areas of the residential complex if such repairs are deemed necessary for communal living or a single residential unit.

However, the management committee will only be authorised to carry out repairs or maintenance if it has taken “all reasonable steps” to reach out to the homeowner (via email or physical letter or note) responsible for carrying out the repairs and has provided a “reasonable time to carry out the repairs or maintenance.”