Title Deeds for resale property

Pre-owned properties
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Joined: 11 Nov 2007 01:01
Location: northwest england

Title Deeds for resale property

Post by cliffyamo »

I have heard that 90% of properties in cyprus have no title deeds and 95% of new build properties also do not have these?
What opinions do you have on this issue of title deeds and what advice can be given when these are not available if someone was interested in buying a resale property?
Nigel Howarth
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Posts: 2575
Joined: 24 Oct 2007 14:38
Location: Erimi, Limassol, Cyprus

Post by Nigel Howarth »

Hi cliffyamo

There are many reasons for the long delays in issuing Title Deeds, including:

- developers 'playing the system'.
- administrative delays.
- loopholes and shortfalls in the law.
- encumbrances, such as mortgages, lodged against property prevent issuing of Title Deeds.
- etc.

If you're looking to buy a property that has not got Title Deeds, get your lawyer to check that:

1. The person selling the property is it's legal, registered owner.

2. The Title Deed for the property of which the the one your thinking of buying forms a part hasn't been mortgaged and that it is not encumbered by any other claims.

(If the property is mortgaged, instruct your lawyer to get a 'mortgage release' from the owner. (The owner will have to get this from their bank). If your lawyer can't get this mortgage release - do not buy the property.)

3. That Planning Permission & Building Permits have been issued for the construction of the property.

4. That a Certificate of Final Approval has been issued by the Planning Authority (which confirms that the property's been built in accordance with the permits issued for its construction).

The ones above are the critical ones.

1. If the property your thinking of buying forms part of a larger development, get your lawyer to check that the owner has applied for a 'division permit'. This enables the Land Registry to subdivide the land so that Title Deeds can be issued for each property built thereon.

As I mentioned earlier, there are a few loopholes in the law. One of these allows the owner the land to use it as collateral for a loan even though he may have sold properties built on that land. This doesn't happen too often, thank goodness, but I've been advising an elderly couple who live a few miles from me who have found themselves in this situation.

BTW I know of many people who have their Title Deeds (including myself).

Take a look at the 'Essential Legal Advice' section on my main website, there's quite a bit there - including a radio discussion I had with a local MP and a lawyer about the problems of Title Deeds.

Nigel Howarth
Independent information & advice for Cyprus property buyers
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