Cyprus Title Deeds – good news or is this just smoke and mirrors?

“INTERIOR Minister Neoclis Sylikiotios yesterday called on land developers to acknowledge they were part of the problem when it came to the title-deeds debacle, and to shoulder their responsibilities to buyers.

He said legislation was in process that would bring an end to the problem affecting 100,000 home owners, including 30,000 foreigners, most of whom are British.

Speaking at the annual general meeting of the Land and Building Developers Association (LBDA), Sylikiotis said the legislation aimed at removing the main reasons why developers effectively block the issuing of title deeds to the rightful owners of new property.

The main reason in most cases is that currently land owned by developers can be mortgaged again and again, leaving those who bought properties without their title deeds for anything up to 20 years. The average waiting time, even for Cypriot buyers is 12 years.”

The Cyprus Informer suggests that purchasers talk about this with their lawyer before proceeding to purchase. Many lawyers have a practise of do a double search to protect their clients.  What does that mean and why?

If there is a mortgage registered before your purchase contact is registered and a Certificate of Specific Performance issued then these definitely cause a problem to getting your Title Deeds.  They have to be paid off first. Bad News for some whose lawyers did not protect their client. It does happen.

How can you protect yourself?  Well you must ask your lawyer to search with the vendor’s permission to find out.  If there are none then your lawyer will go ahead and advise you to sign and he will then register your contract at the Cyprus Land Registry.  Legally that creates an encumbrance which is like a mortgage and makes sure that no subsequent mortgage can rank ahead of you.

Because the system in Cyprus, unlike the UK, does not give you a free period or right to lodge your contract ahead of anyone else waiting in the wings then your lawyer needs to do another search just to check that nothing was popped in between the first clear search and the issue of a Certificate of Specific Performance.

What if that does happen?  To my mind that is likely to be fraud.

But what if there is a charge or mortgage still hanging around from the pre-sale mortgage on the undivided land?  First your lawyer should get a legal waiver from the Bank. Well it does not rank ahead of you legally but it could cause the delays that everyone seems to suffer in Cyprus with the issue of Title Deeds.

What could the Cyprus Government do?

It could make some legislation which stops the Cyprus Banks from using blocking tactics. And secondly if you have no Title Deeds when you come to sell then these mortgages automatically rank behind the new purchaser as well.

The other useful thing that could be done is introduce a grace period after a search that nothing can be added during say, the next month or so.

In the Cyprus Mail there is also this quote “Deals are being done and work started on the basis of an understanding, and because of this, when dealing with a Briton, for example, we must be careful not to send the wrong message,” he added.

Does is means that developers must not mislead Britons any more?

Carry on as normal with others but this lot has twigged ??

The Cyprus Informer thinks that if this idea does not work then the Cyprus Government, which has reaped the benefits of the ramapaging Cyprus construction industry, should simply step in, guarantee the Cyprus Banks and get Title Deeds issued right now.

Unless it does then Cyprus will never recover !! 

Existing Cyprus Property owners must continue to create a fuss through CPAG using the European and UK Parliaments to hear their petitions for justice and force Cyprus to act to put things right once and for all.

Cyprus Property Help & Advice Centre™ ® ©
The Black Art of Buying Property in Cyprus™ ®
The Cyprus Informer™ ® ©
http://cyprusinformer.eu

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