New code for apartment buildings in Greece: what they want to change in general expenses and apartments

Greece is preparing a major reform of the rules governing apartment buildings. The Ministry of Justice intends to update horizontal property law*, acting since 1929and collect disparate norms into a single Property Code.

For now, we are not talking about the new current law, but about the work of a special commission. The final text of the bill has not yet been published, so many details may change. But the direction of the reform has already been indicated: the state wants to simplify relations between co-owners, reduce the number of conflicts in the community and facilitate the use of real estate.

Why did they decide to change the old law?

Basis for horizontal ownership rules still remains law 3741/1929. It regulates ownership of floors and apartments, common parts of the building, rights of co-owners and their participation in expenses.

Over almost a hundred years, hundreds of additional norms, court decisions and special rules have accumulated around it. As a result, for the average apartment owner, a question like “is it possible to combine two premises”, “who is obliged to pay for roof repairs” or “how to collect debts on κοινοχρηστα” often turns into a legal maze with several exits, none of which looks particularly fun.

According to the current law, apartment owners have separate ownership of their apartment and at the same time a share in the common parts of the house. These typically include the foundation, roof, stairs, elevators, façade, chimneys, courtyard, and other elements intended for public use. The main provisions of the law are published in codified version of Law 3741/1929.

What is being discussed in the new reform

Minister of Justice Giorgos Floridis stated that the aim of the initiative is to create a modern system for issues of ownership and co-ownership of real estate. According to him, it is first necessary to codify more thousands of disparate provisionsand then prepare a new, clearer legal framework.

Among the areas discussed as part of the reform are:

• division and consolidation of apartmentsincluding cases where old rules or internal regulations of the house create obstacles;
• clarification of rights to common and exclusive use zonessuch as a yard, terrace, parking space or storage room;
• faster mechanisms for debt collection under κοινοχρηστα;
• mandatory reserve fund for the cost of major repairs;
• building insurance and clearer rules of responsibility;
• strengthening the role of the managerbut at the same time his responsibilities;
• Facilitating repair and energy retrofit solutions.

Important: none of these provisions have yet become law. Before the publication of the project, it cannot be argued that the owners have already received the right to divide or combine apartments contrary to the current regulations of the building. Now this is just one of the options that is being considered during the preparation of the reform.

What can change for oροφοδιαμερίσματα

One of the most sensitive issues is the possibility divide a large apartment occupying the entire floor (oροφοδιαμερίσματα) for several objects or, conversely, combine adjacent premises into one dwelling. In old houses, such transactions often come down to polycatoic regulations, the consent of other owners, building codes, changes in the table of thousandths and the execution of new title documents.

A possible goal of the reform is to create a clearer procedure for those cases when changing an apartment does not violate the safety of the building, does not affect the supporting structures and does not infringe on the rights of other owners. But the specific conditions will depend on the final version of the bill.

Separately, you will have to take into account town planning rules, engineer permits, Cadastre data and requirements for changing the composition of horizontal properties. The new code, even if adopted, will not automatically eliminate technical restrictions or the need for notarization.

Debts under κοινοχρηστα can be collected faster

Another important topic is unpaid utility (general) expenses. Today, housing debts often become a chronic problem: the manager cannot raise money for an elevator, heating, roof repairs or building maintenance, and the remaining residents are forced to either pay more or live with constantly deferred repairs.

The current rule provides for the participation of each co-owner in common expenses in proportion to the cost of his apartment, unless the regulations establish a different procedure. This is stated in Article 5 of Law 3741/1929.

The reform could give managers and co-owners faster legal mechanisms to collect debts. However, the specific procedure, terms and guarantees for protecting debtors are still unknown. Until the publication of the text, it cannot be stated that automatic collection or a new form of fines will appear.

Repair, insulation and solutions for the majority

Most of the old buildings in Greece need renovation: facades, elevators, roofs, plumbing, electrical, insulation and heating systems. But in practice, even obvious work often gets bogged down in disputes over cost and the required majority of votes.

As part of the reform, the possibility of lower the consent threshold for some solutions related to safety, repair and energy modernization. This could make it easier to insulate facades, replace old heating systems, repair elevators, install solar panels or other work that improves a building’s energy efficiency.

But the balance is especially important here: simplifying decisions should not turn into an opportunity to impose large costs on a minority of owners without a transparent procedure, cost estimate and the right to challenge the decision.

Reserve fund and building insurance

Another idea being discussed is to create a mandatory reserve fund of apartment buildings. This means that part of the monthly premiums could be set aside not only for current expenses, but also for future major repairs.

Such a mechanism can be useful for emergency work after roof damage, elevator failure, pipe problems or the need to strengthen a building. But it will inevitably increase the owners’ regular expenses, especially in old houses where there are almost no accumulated funds.

In parallel, a more systematic approach to building insurance. In a country where owners are increasingly faced with fires, floods, earthquakes and expensive damage to common property, this topic has long ceased to be a minor issue.

When to expect the law

The Ministry of Justice created a commission of 13 memberswhich is headed by Judge Areopagus Constance Emmanouilidou, a specialist in property law, cadastre and real estate. The commission’s task is to prepare a systemic reform project.

According to Giorgos Floridis, the work should be completed by next fall, and then the authorities expect to move on to legislating the Property Code. But before the bill is submitted to parliament, it is premature to talk about the exact timing of the entry into force of the new rules.

The main thing for apartment owners

Nothing has changed automatically yet. Regulations apartment buildingsthe current rules about κοινοχρηστα, the decision-making procedure and restrictions on changing apartments continue to work in their current form.

But the reform itself could become one of the most noticeable changes for the real estate market in recent years. If passed, it will be important for owners to check their home’s by-laws, thousandths table, old notary deeds, and status of common areas. It is in these documents that half of the future conflict is usually hidden, and the second half is already sitting at the general meeting and saying that “It has always been this way.”

*Help: what is horizontal property

Horizontal ownership is a form of ownership in an apartment building in which a person owns his apartment as a separate piece of real estate and at the same time has a share in the common parts of the building.

For example, the owner of an apartment owns the apartment itself, but together with other residents also has a share in stairs, elevator, roof, facade, foundation, pipes, entrance, yard and other common elements of polycathoicia.

This share means not only rights, but also responsibilities: the owner participates in paying common expenses – κοινόχρησταincluding cleaning, electricity in the entrance, elevator maintenance, roof repairs, heating and other home needs.

The term “horizontal” refers to the fact that the building is legally divided by floors and apartments. Each apartment belongs to a separate owner, but the building itself and its common parts remain the joint property of all owners.

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