- Cyprus Property News Magazine - http://www.news.cyprus-property-buyers.com -

Troika back-tracks on Title Deed backlog

MANY who were hoping that agreement between the Cyprus Government and the troika of international lenders would result in their receiving their Title Deeds, pinned their hopes on the following statement contained in the Memorandum of Understanding issued on 12 April 2013:

“By Q4-2014, eliminate the title deed issuance backlog to less than 2,000 cases of immovable property sales contracts with title deed issuance pending for more than one year. The Cypriot authorities will enhance cooperation with the financial sector to ensure the swift clearing of encumbrances on title deeds to be transferred to purchasers of immovable property, and implement guaranteed timeframes for the issuance of building certificates and title deeds;”

However, this statement has been replaced in the latest Memorandum of Understanding issued following the troika’s recent visit to Cyprus (which I believe has yet to be ratified) with the following:

“Ensure that the title deed issuance backlog drops to less than 2,000 cases of immovable property units with title deed issuance pending for more than one year by Q4-2014 (backlog refers to (i) applications, (ii) units that are eligible for the “ex officio” issuance of title deeds, required certificates and permits).

“The ex-officio cases will automatically be counted in the backlog from the date the certificate of final approval is being issued by the respective Local or District Authority. Moreover, prepare a joint action plan to streamline the processes within the DLS and between the DLS, the Local and District Authorities and the Ministry of Interior Technical Services by Q2-2014;”

What this revised statement means is that:

It does not refer to all the reported 130,000 properties that have yet to be issued with Title Deeds, but only to those where:

Applications for Certificates of Final Approval and the issuance of Title Deeds are the responsibility of the developer and so any pressure that the original MoU placed on developers to act responsibly has been removed.

Furthermore, in this latest issue of the MoU the requirement: “The Cypriot authorities will enhance cooperation with the financial sector to ensure the swift clearing of encumbrances on title deeds to be transferred to purchasers of immovable property‚Ķ” has been removed.

This apparent back-tracking by the troika will not be welcomed – questions need to be asked.

Perhaps the troika uncovered some hitherto unknown facts, in the same way that many property buyers uncovered a hitherto unknown fact when they discovered they’d been duped into buying a home built on mortgaged land?