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Check those Title Deeds

Tuesday, June 23, 2009

Source: Jude Buttle

A spate of unfortunate encounters with property title deeds has led property experts to issue a warning to unwary buyers...

British investors were urged to be thorough in their inspection of property title deeds when completing tansactions in order to avoid disappointment. Locations such as Cyprus, Montenegro, Morocco and even Spain could entail problems related to property title deeds, or lack thereof.

According to The Daily Telegraph, not researching title deeds before investing could be a significant error for potential property owners. Some properties in the locations mentioned could for example have no title deeds at all, or disputed deeds.

Kieran Kelleher, the Director of Savills in Croatia and Montenegro, said, "It takes only a few euros to obtain a title of a home in Croatia or Montenegro, then you translate it." If there is no title history, it is recommended that investors abandon the purchase.

According to Mr. Kelleher, some off-plan properties in these countries were sold as many as 15 times over without ever being built. Indeed, more than 80 per cent of developers never officially register their properties.

John Howell from the International Law Partnership reiterated the importance of investigating the title before purchasing foreign property. He believes that it is unnecessary to make investments with such complications.

Mr. Howell said, "In places where there are well-known title complications, like northern Cyprus, why buy? Or if you must, why not check if there are specific problems?"

Some investors however feel differently. Jeremy Muntus, a surveyor from Yorkshire, for example said: "It's up to politicians and Governments to sort out how the island operates. It's all part of the fun and games of owning in northern Cyprus."

Source: www.hotproperty.co.uk