CYPRUS TITLE DEEDS A RIGHT OR A NECESSITY?
When purchasing a property, in order to finalize your role as owner of the property you need to obtain the title deed for that property by paying a certain amount and going through the conveyance process.
In order to save money, some buyers, choose not to secure the title deed that corresponds to the property they bought.
WHAT ARE THE POSSIBLE CONSEQUENCES FOR NOT OWNING YOUR CYPRUS TITLE DEEDS?
If you do not hold your Cyprus title deeds in the eyes of the law, you are not the owner, and the ownership remains with the previous owner. THAT means YOUR property can be imposed any encumbrance (mortgage) that may be the result of an unpaid loan the previous owner may have to a bank and/or other legally recognized lender, and also nothing can stop the previous owner from re-selling YOUR property, and generally do all that they want as if the property was NEVER SOLD to you.
INCREASE OR POSTPONING OF MORTGAGE:
If the property you bought had ALREADY a mortgage on it, the one holding a Cyprus title deed can extend, and/or increase, and/or reschedule payment for that mortgage without YOUR knowledge or approval.
HUGE AMOUNTS FOR IMMOVABLE PROPERTY TAX:
Since the actual owner is NOT you in the eyes of the law as YOU don’t hold the Cyprus title deeds in YOUR hands, that means the actual owner will be the one paying the immovable property tax, which you may never find out the actual amount, and thereby be at the mercy of any owner wishing to extort HUGE AMOUNTS OF MONEY from YOU, claiming that is only for immovable property tax reasons.
RESTRICTION ON TRANSFER OF PROPERTY:
‘He who holds no title, cannot give title’ – this is a Latin doctrine which still applies to this day. THAT means since you are NOT the owner in the eyes of the law, you cannot sell or even transfer YOUR property to anyone, not even your children and/or your successors, until YOU get your Cyprus title deed.
EXTRA CHARGE IMPOSED FOR TRANSFER OR SALE:
If you wish to sell or transfer your property, you will have to cancel your already registered sale agreement in the land registry, and enter a new one that will entitle the previous owner to do the sale and/or transfer for you, some reputable development companies have charged people like YOU for an additional amount of more than EUR 40,000 in order to provide them with such service.
ILLEGALLY BUILT PROPERTY:
There have been many cases in court for accusations of illegally built properties. Such properties are the ones that are built without having the necessary PLANNING AND BUILDING PERMITS that would allow the said construction to take place. If it is proven that this is the case, the relevant authorities may order the DEMOLITION of YOUR property. Such a case would not have happened If you had YOUR CYPRUS TITLE DEEDS, which would prove that all was lawfully conducted.
UNABLE TO MAKE CHANGES TO YOUR PROPERTY:
As you don’t hold title deed to YOUR property, in the event you want to make changes to it, you need the approval of the previous owner to do this and there is NOTHING stopping them from imposing an amount payable to them by YOU, so as to give their approval.
IMPLICATIONS – PASSING OF THE BILL ON THE DIVESTMENT OF PROPERTY
On Wednesday 30.07.2014 the bill for divestment of property shall be in the hands of the House of Representatives, who will
then decide on whether the said bill shall pass as a law. BUT what DOES the bill say?
According to relevant sources, in the event the bill is approved and passed as a law, the owners (being the ones who hold legal title deeds) that have unpaid mortgages, shall be subject to the lender’s right to SELL the mortgaged property in order to retrieve their money. That means, in case YOU do not have title to YOUR property, the owner (being not you in the eyes of the law), that have unpaid loans, may be subject to the aforesaid arrangement. So in effect, YOUR property may also be subject to the said process, as you do NOT hold the title deeds to it.
WE ARE HERE TO HELP
If you think that you may be affected by the new legislation or that you already have some issues with tittle deeds to your property, please contact us IMMEDIATELY. Our legal team as well as giving general advice can also assist in the following ways:
- Register your sale agreement if you have recently bought a property but the sale agreement has not been registered we can submit the sale agreement on your behalf.
- Late registration of sale agreement if the allowable time has elapsed we will take your case to court where by allowing the registration of the sale agreement even after registration deadlines.
- Contact the land registrar on your behalf, to find information such as whether or not sales agreements have been registered.
- Research and advice, on whether your property has any outstanding debts or if it is at any risks.
Regardless to how big or small you think your case may be we are here to help so pick up the phone or send us an email, you may find all or contact details on our contact page.