Around 60% of homes eligible for the “Mortgage-to-Rent” Scheme do not have final approval certificates, according to a report presented to the Parliamentary Finance Committee.
The committee discussed whether KEDIPES should be exempt from the requirement to obtain these certificates for properties acquired under the scheme, just as the government is exempt. A Ministry of Finance representative stated that this exemption would help increase the number of approved applications.
Under current law, property owners must obtain an Approval Certificate, or they may face administrative and even criminal consequences. Since KEDIPES will own these properties, it could be held legally responsible unless it is exempt. The Ministry of Finance representative argued that, as the scheme is a government initiative assigned to KEDIPES, the company should not be responsible for missing Certificates.
KEDIPES also assured that tenants would not be affected by the exemption. It promised to cover the cost of restoring the residences, which is estimated at 15% of their value. For example, a €200,000 property could receive up to €30,000 in repairs.
However, MPs raised concerns about the proposal. AKEL MP Aristos Damianou warned that although the bill is signed by the Attorney General, it may not be legally strong and could be challenged in court. He also questioned who would be responsible if issues arose due to the exemption granted to KEDIPES.
DIKO MP Chrysis Pantelides pointed out that the amendment exempts KEDIPES from legal obligations but does not exempt the properties themselves. Committee Chair Christiana Erotokritou noted that many state entities receive different treatment compared to private citizens. She warned that if any damage occurs to a property due to this exemption, the government will bear responsibility, as KEDIPES is fully state-owned.
What are Final Approval Certificates?
Final approval certificates are issued by the planning authorities after they have inspected properties once they’ve been built. The Certificate confirms that the properties in question have been built according to the permissions and permits authorised for their construction.
Once Certificates have been issued, the planning authorities passes the approved permissions, permits, plans, and the final approval certificates to the Land Registry, where Title Deeds for the property(ies) will be issued.
