Dated Cypriot Laws Threaten Property Owners

The island's weak economy has negatively affected many developers, families, and retired British citizens.  As reported by Parikiaki, Marc and Liz Capaldi own a Pervolia mortage-free apartment, that may be taken from them. The owners, along with thirty-one others, have been instructed to pay fines that cover current debts, road construction and the developer's capital gains tax bill.

Capaldi described, "We are in a very insecure position. We get depressed at the idea that someone has taken £50,000 from us...We are waiting for the receiver to tell us how much we've to pay. I'm convinced I will never get the title deeds because there will not be enough money to pay for the roads and taxes...This is happening because the EU is lending money to prop up the banks and demanding they cut debts. The property market has collapsed".

Under Cypriot law, if a developer doesn't pay an empty lot's total mortgage, the financial lender has rights to anything built on the property. Approximately 100,000 dwellings without title deeds naming the real owners sit on Cyprus, with about 30,000 of them belonging to mainly British citizens. Almost £5billion worth of funds are owed by developers.

Property expert Nigel Howarth described, "The most common mistake people make when buying property in Cyprus is to use a lawyer introduced or recommended by a developer. Buyers must be careful purchasing a property if its title deed is not immediately available".