AN AMENDMENT passed by Cyprus’ parliament this week, banning banks from repossessing homes that owners have paid for but have no title deeds because of developer mortgages, has done little to relieve those affected, property experts have warned.
“It is a complete and utter mess,” property advisor Nigel Howarth told the Sunday Mail. “I don’t know if the people in government really understand what is going on.”
On Thursday, parliament voted to indefinitely ban foreclosures on homes whose owners had received no title deeds, even though they may have paid for their homes in full, because the building developers had already taken out loans on those properties which they cannot repay.
Developers’ land and buildings are counted as assets that need to be offset against their debt to banks, which gives lenders a claim on people’s properties that had been mortgaged by developers.
According to the provision, such properties will be exempted provided the buyers paid at least 80 per cent of the sale price or have fully complied with their contractual obligations towards the seller.
AKEL, which had tabled the amendment, said the legislation fully protected thousands of people whose homes or businesses could not now be foreclosed because a developer was insolvent.
But Howarth said that the amendment would actually do very little to remedy a problem that affects an estimated 30,000 home-owners as they still would not be issued their title deeds.
“What parliament achieved is merely stopping the bank from repossessing people’s homes. But what good does that do them if they don’t get the title deeds they paid for?” asked Howarth, pointing out that the issue dates back as far as 1986.
The property advisor added that even if a title deed were issued, it would still be in the name of the developer, not the buyer.
“And the developer cannot transfer that deed if his debt isn’t settled” reports Cyprus Mail
Cyprus bans banks from repossessing homes that owners have paid for but have no title deed
