Cypriot parliament passes final parts of title deeds law
On the 14th April 2011, the remaining two parts of the “town planning amnesty” bill aimed at alleviating the backlog created by the current system were passed by the Cypriot parliament. This is a boon for Cyprus holiday home owners as the current system has created problems due to the lack of clarity over who is liable for the land.
Previously, the bank would own the land until the loan or mortgage agreement had been settled in full. This lead to further bureaucratic issues with the land registry where on occasion, some owners were not able to complete their title deed request even if they had fully paid for their property to the developer or seller.
One of the new laws that has been passed is the Immovable Property Sales Law. This will help those holiday home owners to have the law on their side if the ownership of the land on which they own the property is called into question. They will have the land contract and will therefore not be liable for any bad debt bought about by the landowner. Other changes will include planning permission on co-owned land. Until now land that was co-owned would require the signatures of both parties to apply to build on the land. Under the new laws, the only signature needed will be that of the person who owns the particular part of the land which is to be built on.
As reported on cypruspropertynews.net, the Chairman of the House Legal Affairs Committee, DISY’s (Democratic Rally) Ionas Nicolaou, said that laws are reflective of the changes that are required to better protect buyers rights in an open market based on European laws. “The new law will allow the buyer to have Title Deeds, independent of whether the seller owes money on that property…It is a very important bill as it will help reactivate the property market in Cyprus.” Currently, there are around 130,000 title deeds applications currently pending. It is thought that this is manly due to developers failing to pay their mortgages on the land and properties that buyers have already purchased.
The new laws passed will help legalise property that currently lacks a title deed due to what is termed “town planning irregularities” creating a simpler system for home owners.