What Challenges Do Buyers Face Without Title Deeds?
In Cyprus, purchasing real estate without title deeds has long been a problematic issue. This occurs when sellers have outstanding mortgages, preventing the transfer of clear ownership. Consequently, buyers end up with unsettled ownership, referred to as being "trapped" or "enclaved." Despite paying the full price, these buyers cannot secure proper title deeds, leading to serious property ownership disputes and financial vulnerability.
How Has Cyprus Legislation Tried to Resolve This?
To address these challenges, the House of Representatives has enacted legislation across 2011, 2015, and 2023. These laws aimed to protect buyers, enabling them to enforce the transfer of title deeds despite the existing mortgage. The 2011 law introduced the specific performance procedure where buyers could request court orders to compel sellers to fulfill their obligations. The 2015 amendment allowed the Department of Lands and Surveys (DLS) to lift mortgages if buyers deposited their contracts within six months.
What Are the New Property Procedures Under the 2023 Law?
The latest 2023 legislation introduced a mandatory search certificate from the DLS in property contracts, detailing any existing liabilities. New provisions allow sellers to commit to mortgage repayment and ensure title deed transfer upon receiving payment confirmation from lenders. Type A, B, and C procedures streamline this process, securing the buyer's ability to obtain title deeds once 95% of the mortgage is repaid. These procedures are crucial for ensuring legal protection for all parties involved.
What Recent Legal Challenges Have Affected These Efforts?
A recent ruling deemed some of these legislative provisions unconstitutional, particularly the authority of the DLS to erase mortgages, which impacts lender rights. This has temporarily stalled applications from trapped buyers, necessitating government intervention for legislative review and adjustment. Buyers are encouraged to perform due diligence, obtain timely search certificates, and seek advice from a property lawyer before any purchase.
Conclusion
The ongoing reforms in Cyprus highlight the evolving landscape for buyers facing title deed issues. Legislative changes aim to fortify buyer protection, but constitutional challenges remain a hurdle. For individuals looking to invest in Cyprus property, contacting legal experts, like Tsitsios & Associates LLC, can provide invaluable guidance. Reach out via email at info@klztlaw.com for expert advice on these developments and other property-related inquiries.
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