THE HEAT is being turned up on the Cyprus Government to resolve the long-standing “Title Deeds-cum-fraud mess“.
As the financial crisis bites ever deeper, buyers are getting increasingly worried and angry at the seeming lack of progress being made by the Cyprus Government. Although it promised “an arsenal of weapons against unscrupulous property developers” more than three years ago, the present Interior Minister Neoclis Sylikiotis has asked for patience saying “It’s not just about delays in issuing the deeds, it also concerns issues of planning and mortgages to the banks.”
George Strovolides, president of the Cyprus Land & Property Owners Association, is pushing the property developers and the Cyprus Bar Association to “put their houses in order,” a British MEP has written to the Cyprus Justice Ministry asking if Cyprus is “a rogue-state beyond the fringes of civilisation?” and questions have been raised in the House of Lords.
In the latest development, Dr Caroline Jackson, MEP for the South West of England, has asked the European Commission if it is able to intervene in any way – a reply should follow within 30 days.
WRITTEN QUESTION E-6513/08
by Caroline Jackson (PPE-DE)
to the Commission
Subject: Property rights in Cyprus
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. However, should a property developer go bankrupt and have to surrender any title deed owned to their bank, homeowners living on that land risk losing their property.
This current situation appears to be in contravention of the constitution of Cyprus and possibly EU 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?
© European Parliament, 2008
(To follow progress, visit the written questions section of the European Parliament website. The questions, together with their answer, are listed in reverse date order; Dr Jackson raised her question on 25th November 2008.)
Although Minister Sylikiotis has assured property buyers that newly proposed legislation to resolve problems in the sector could be implemented by the end of the year, whether it’s yet another empty government promise remains to be seen.
