Recovering Outstanding Building Common Expenses: Legal Steps and Procedure
The accumulation of arrears in building common expenses (service charges) constitutes one of the most frequent issues in modern apartment buildings. Beyond causing social friction, the refusal or inability to pay threatens the smooth operation of the building and exposes the property manager (διαχειριστής) to potential liability.
Below is a detailed legal guide outlining the steps to be followed, from extrajudicial formal notice to enforcement proceedings.
1. The Legal Foundation: The Building Regulations
Prior to any legal action, the first document that must be thoroughly reviewed is the Building Regulations (Κανονισμός της Πολυκατοικίας).
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Its Legal Force: The Regulations constitute a legally binding contract for all co-owners (and, by extension, for tenants).
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What to Look For: The specific authority granted to the property manager for legal representation, potential clauses regarding default interest, and the precise method for allocating expenditures (millenary shares).
Note: If no Building Regulations exist, the general, mandatory provisions of Law 3741/1929 “On Horizontal Property” shall apply.
2. Who is Sued? Owner vs Tenant
A common misconception concerns the party legally liable to the co-ownership.
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The party liable to the co-ownership is ALWAYS the property owner (whether holding bare ownership or usufruct) of the apartment.
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Even if the apartment is leased and the tenant neglects their obligations, the property manager must pursue legal action exclusively against the owner.
The owner is obligated to settle the debt with the co-ownership and subsequently retains the right to take recourse against their tenant, seeking reimbursement or even eviction (αποβολή/έωση) due to breach of lease terms.
3. The Step-by-Step Recovery Procedure
Step A: Extrajudicial Formal Notice / Demand Letter
When verbal reminders fail, the first official legal step is the drafting and formal service of an Extrajudicial Notice(Εξώδικο).
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Content: It must include a clear and itemized statement of the outstanding common expenses per month and expenditure category.
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Purpose: A reasonable compliance deadline is granted (typically 5–10 days). Upon expiration of this period, the debtor is officially rendered in default (υπερήμερος), and the debt begins to accrue statutory default interest.
Step B: Issuance of a Payment Order (The Expedited Route)
If the extrajudicial notice is ignored, the most efficient legal path is applying for a Payment Order (Διαταγή Πληρωμής).
Important Institutional Update: Following recent legislative reforms, the procedure has been drastically accelerated. The issuance of a payment order is no longer handled by a judge, but is assigned directly to a Lawyer registered in the special rosters of the relevant Bar Association. This ensures a substantial reduction in processing time and the immediate issuance of an enforceable title.
Required Documentation:
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The minutes of the general meeting electing the current property manager.
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A copy of the Building Regulations.
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The itemized monthly expense statements and individual payment notices (ειδοποιητήρια), signed by the property manager.
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The corresponding receipts/invoices of expenditures (utility bills, maintenance invoices) proving the actual expenses incurred.
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The formal proof of service (αποδεικτικό επίδοσης) of the extrajudicial notice.
Step C: Enforcement Proceedings
Once the Payment Order is issued and legally served twice upon the debtor, it constitutes an enforceable title (τίτλος εκτελεστός). If the owner persists in non-payment, our firm proceeds immediately with enforcement measures, such as:
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Third-Party Attachment: Garnishee orders attaching rent payments (if the apartment is leased to a tenant) or the direct freezing and seizure of bank accounts.
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Foreclosure and Auction: Applied as a measure of last resort for exceptionally large debts.
4. The Liability of the Property Manager
The property manager does not act at their own discretion; they have a statutory obligation and an explicit mandate from the General Assembly to collect common expenses.
If they demonstrate negligence, allowing claims to become time-barred (noting that common expense arrears are subject to a 5-year statute of limitations as periodic payments), the remaining co-owners reserve the right to pursue personal civil liability claims against the manager for damages.
Our law firm provides comprehensive legal coverage and support for building management affairs. From drafting watertight extrajudicial notices to the swift issuance of payment orders, we safeguard the financial health and orderly operation of your property. Contact us to evaluate your case.
