Cyprus Title Deeds Fiasco Continues
Despite changes in the law during 2011 problems with title deeds continue to pile up for property buyers in Cyprus.
Banks in Cyprus provide mortgage funds to developers to build properties AND then the same banks provide mortgages to the buyers of the properties. The mortgages provided to the developer are not normally disclosed to the property buyers. The lawyers, banks and developers know that many buyers would not proceed with the purchase if they knew they were being offered a second charge mortgage. The first charge over the property is between the bank and the developer.
This means that if the developer fails to repay the mortgage before the title deeds are issued then the banks can auction off the property to repay all or part of the developers debt. When you consider it takes many years for title deeds to be issued in Cyprus it leaves buyers in constant worry that their developer may default on the mortgage.
Alpha Bank have recently applied to auction off a group of properties mortgaged to a developer that ceased trading some time ago. This leaves the property buyers in danger of becoming homeless even though they may have paid off their own mortgage on the property. Please help us put a stop to the whole Cyprus title deeds debacle by signing the petition to halt the auction at title deeds fiasco.
If the problems with title deeds in Cyprus are not resolved the property market will simply never recover. Just 61 signatures short of 1,000 at the latest count on the petition to stop the auction. Please sign the petition if you haven’t already done so and let us all hope the crazy Cyprus title deeds problems are resolved quicklyTweet Please help us to inform everyone that is thinking of buying a property in Cyprus to read our buying guide by clicking the Social Network buttons above.