It has been reported that thousands of flat and house owners in Cyprus are unable to obtain title deeds for their properties.
This information was provided on Wednesday, 17 July, by Elikkos Elia, Permanent Secretary at the Ministry of the Interior.
Mr Elia stated that the Land Department currently has a backlog of more than 9,000 applications, of which only 2,331 fulfil the necessary criteria for issuing titles. He also highlighted that since 2015, the department has received 21,495 applications from trapped property buyers in Cyprus. Of these, in 11,158 cases it has been able to transfer title deeds.
Mr Elia stated that the primary reason for the Land Department's refusal to issue title deeds is the developers' indebtedness to local banks from which they have borrowed. He also noted that some projects were executed without adhering to the requisite procedures.
"We are faced with the fact that many property developers have failed to honour their obligations. Banks have provided money, but the developers have been unable to fulfil their financial obligations. Often people purchase objects at the design stage, without knowing whether the property construction permit has been obtained and whether the object will eventually be built as planned," said Elia.
It should be noted that the Cyprus government adopted the Law on Deceived Buyers in 2015 in response to the activities of fraudulent property developers.
The programme's primary objective is to assist individuals who, for various reasons, have been unable to obtain title to their properties. Since its inception, the government has encountered thousands of such cases.
In accordance with the established regulations, individuals who have been the victims of fraud are required to submit their applications to the Department of Land Cadastral Registration. The department is then obliged to conduct an investigation and issue title deeds, provided that the property in question corresponds to the specifications outlined in the building plans.
There are three categories of property owners who find themselves without a title:
- Those who have fulfilled all their obligations but have been unable to obtain a deed due to the developer's outstanding debts.
- Those who were unable to obtain a title due to making illegal alterations to their property.
- Those who did not receive a title because the developer was building in an irregular manner.
Those in the first category are entitled to a free title. Those in the second category must pay compensation, the amount of which depends on the type of violation. Those in the third category can get the title for free, and in this case the Ministry of Internal Affairs demands compensation from the offending developer.