Cyprus Property Title Deeds – Update

When will the Government of the Republic of Cyprus realise that sorting out the issue of title deeds will stimulate the ailing building sector? Property buyers should not have to wait years for title deeds after completing payment for their property. Neither should they bear the real risk of the insolvency of a property developer causing the title deeds to be seized by a bank or other creditors including the Government of the Republic of Cyprus for unpaid taxes etc.,

The Government in Cyprus currently permits property developers to retain the title deeds to land that they develop, even after properties are built. Subsequently, property developers can use these title deeds as collateral to gain mortgages.
 
The Cyprus Mail newspaper reported that British Foreign Secretary David Miliband and Chancellor Alistair Darling have recently exchanged letters concerning the ongoing title deed issue in Cyprus.

In two letters seen by the Cyprus Mail, Miliband states to Alistair Darling:

“I understand the concern about the practice in Cyprus of title deeds not being supplied on completition of a property purchase. The practice of property developer’s not supplying title deeds to purchasers has the potential to affect a large number of British citizens as well as other foreign nationals living in Cyprus.”

Miliband also revealed that the British High Commissioner Peter Millett had “received assurances” from the Cypriot Interior Ministry that a bill addressing the issue would soon be ready.

The British Foreign Secretary added “will continue to take a close interest in developments and look forward to seeing the measures by which the Cypriot government will attempt to resolve this matter.”

However, the paper adds that a well informed source at the Ministry of the Interior said he was unaware of any new legislation being drafted.

We think it is time the E.U.stepped in and refuse any more funding to Cyprus until this situation has been resolved. This current situation appears to be in contravention of the constitution of Cyprus and possibly EC law. Does the Commission believe that it has any standing to intervene in any way in this situation, given that the interests of many citizens from EU countries other than Cyprus are being damaged by this practice? These are typical questions already put to The European Parliament.

Charlie McCreevy is The European Commissioner for the Internal Market and Services, He is responsible for the European Union’s policy on the functioning of the internal market of 480 million people across 27 Member States.

His answer is at http://www.europarl.europa.eu/sides/getAllAnswers.do?reference=E-2009-0110&language=EN

The Commission cannot make an assessment of the situation based on the information included in the question.

Therefore, and in order to collect all the necessary and relevant information, the Commission has addressed a request to the Cypriot authorities asking for detailed information on the legal provisions and practices regulating and operating in this sector. The Commission will take the necessary measures if it can establish the existence of infringement of EU law.

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