Property News | Cyprus title deeds: follow up

Browse By Subject

Money

Property

Social

Professional

Cyprus title deeds: follow up

Friday, June 19, 2009

Source: Catherine Deshayes

Following our story on Tuesday regarding Cyprus title deeds, Nigel Howarth, Editor of Cyprus property News Magazine, has provided TheMoveChannel.com with further information for any individuals who have been affected...

"The Cyprus ‘Title Deed problem'and Government promises to resolve them, have been around for many years.

"In the 1980's the collapse of a property development company, A. Pieris estates, soured diplomatic relations between Cyprus and Kuwait because Kuwaitis who had bought property from the company lost their money. At that time the Cyprus Government promised new laws. However, new legislation to protect the interests of property buyers was not forthcoming.

"But the problems with Cyprus' property industry have gained prominence since the explosion in property sales a few years ago. Various Governments have promised to resolve the matter:

"In 2005, the Cyprus Government said it was going to plug loopholes in the law, introduce fines, and provide property buyers what it called ‘an arsenal of weapons against unscrupulous property developers.

"In 2007, the Government was going to look at providing greater security to homebuyers by enabling their Contracts of Sale to take precedence over the developers' mortgages.

"In mid 2008 the Interior Minister assured property buyers that newly proposed legislation to resolve problems in the property sector could be implemented by the end of the year.

"At the start of 2009, the Interior Ministry reaffirmed its assurances that it intended to introduce a Bill to address the Title Deed issue.

"In April, the Interior Minister qualified his earlier assurances by saying that the proposed bill will only apply to future cases.

"We believe that the new legislation being planned should be put before the House of Representatives later this year. However, this legislation appears to be no more than a building amnesty; effectively a system of fines for those who have built illegally enabling them to have their illegal structures regularised in order that Title Deeds may be issued.

"But this amnesty will do nothing for the thousands of property buyers who have been ‘duped' into buying property built on land that the developers have mortgaged.

"One thing is clear - protecting the buyer is not a priority for the Cyprus government, the Cyprus banks or the property developers. When a developer goes bankrupt, an individual who has bought property built on land that is mortgaged faces the risk of losing everything.

"The banks have the right to claim the collateral and property buyers will be left homeless and tens of thousands of pounds worse off," added Mr Howarth.