New law boost for Cyprus property buyers

PROPERTY buyers trapped because their developer has mortgaged the title to a financial institution can now obtain the title by paying the mortgage directly to the bank themselves under a new law on real estate purchases.

It was the last of a series of bills introduced under the general idea of town planning amnesty in order to solve accumulated problems in the real estate market.

The new law also provides that the sales contract shall take precedence over the mortgage.

Another bill amending the prevailing contract law was rejected by the majority of the House, with only 17 MPs of the government supporter AKEL and the Greens voting for it.

The House committee had suggested the government should withdraw the amendment bill but met with a refusal.

The rejected bill provided for all contract sales or gifts concerning real estate to be in writing and submitted to the competent land registry in order to be valid.

Editor’s comment

This is ridiculous! How many people are going to be prepared to pay for their house twice? Buyers had no idea that developers had mortgaged the land, yet this law makes them responsible for paying it.

Using some warped sense of logic buyers have to pay the developer’s mortgage because they bought the house.

It will make Aristotle turn in his grave!

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