Cyprus’ new title deed legislation can only be good for everyone, according to the managing director of developers Alpha Panareti, Andreas Ioannou.
Speaking exclusively to OPP, Ioannou said: “Our own clients are not affected at all by the title deed problem, as they are not held by the banks against any sort of loan to the company, but a great many UK buyers have been caught in a trap, where their builder used the land deeds as a security against loans for the property they were constructing. The new law will have an immediate impact on the poor publicity that has been generated for Cyprus over the situation, and I hope that the UK press will publicise it widely. It’s vital that buyers understand that, provided their Contract of Sale for a property has been properly registered at the Land Registry, they have the absolute right of ‘First Call’ on the property.
He added: “This is a great advance in client protection and I hope that it will re-assure future buyers that Cyprus is a good prospect for investment and a truly excellent location, both for holidays and for permanent retirement. The island has been through a difficult few years, with this problem and with the general global financial situation, but we can now move forward. Alpha Panareti is actively supporting all governmental efforts to tighten up the legislation in all areas surrounding property development, as well as the new move towards environmental awareness and the use of sustainable resources.’’
Another benefit to the purchaser is increased freedom in financing, according to Ioannou. He said: “The new law also gives much greater freedom to the purchaser. In the past, where a buyer took out a local mortgage loan, he could not easily change this to a different bank at a later date, if concerned about interest rates or better deals. Now, the borrower is entitled to manage and change his funding arrangements as he wishes, provided all outstanding debts are settled.”