THE ASSOCIATION of International Property Professionals (AIPP) took its battle to establish standards for the industry – and more safety for consumers – to Westminster last week. The occasion also saw a new free legal advice service to buyers.

Tuesday (18th) saw the launch of a White Paper entitled AIPP guidelines for the sale of overseas land and property to buyers from the United Kingdom, free to download here, at a reception at the Palace of Westminster where the Board of the AIPP were there to meet MPs interested in the subject and to press the case.

Although the turnout of MPs was sparse, due to a vote in the Commons, several members of the Houses of Lords and Commons did turn up to hear AIPP Managing Director Peter Robinson explain the need for government to take an interest. “AIPP is taking the initiative to review the overseas property industry with the aim to identify areas that can be improved to enable a more transparent, safer and professional cross-border transaction and make appropriate conclusions and recommendations,” he said. “We seek additional partners, agencies and commercial businesses to work with us in delivering this.”

After explaining the particular problems facing the overseas buyer, who as a cash-rich, potentially older buyer working in an unfamiliar culture and legal jurisdiction is particularly tempting to professional fraudsters, Mr Robinson outlined the path to better regulation: “To galvanise and guide this process at a governmental and supranational level, we would like to encourage the formation of a new All Party Parliamentary Group (APPG) on foreign property matters.” For this to happen, some 20 MPs must sign up, so members of the AIPP are being urged to contact their own Member of Parliament to explain the need. Mr Robinson also announced the publication of a new 50 page Buying Safely Abroad guide, available free of charge via the AIPP website, and another exciting launch, the AIPP Legal Working Group, set up by members to offer British buyers up to five hours worth of legal work:

• 1 hour’s free consultation on the legal issues in their country of choice

• A review of up to 50 pages of documentation

In the past year membership of the AIPP has risen to well over 300 corporate members, from 26 countries. Peter Robinson told OPP that he hopes to get the Parliamentary Group running by the end of January: “We need to move quite quickly.”

Also present at the meeting were Jesulado Ros Tonda, Secretary General of Provia, the Spanish Property Developers Association, Paul Gardner Bougaard of the Resort Developers Association, and Denise Boyes and Mike Stead from the Foreign and Commonwealth Office, who were the architects of the Know Before You Go campaign to advise Britons buying and moving abroad; Gerry Fitzjohn the Vice Chairman of the Property Ombudsman and Michael Reeve the CEO of AFPOP, the Portuguese residents’ association.

– OPP Magazine

KEY ASPECTS of the new repossessions legislation are for the time being unenforceable, the attorney-general has said.

In a letter dated November 19 addressed to the finance ministry and later forwarded to parliament, AG Costas Clerides noted that certain provisions of the law – enacted in September – cannot be implemented unless the relevant accompanying regulations are first passed by the House.

Such provisions include the method of selecting auctioneers for properties undergoing foreclosure as well as the process governing the issuing of foreclosure notices.

Speaking in parliament last week, Finance Minister Harris Georgiades likewise told MPs that the foreclosures law could not be imminently enforced.

In doing so, the minister was apparently seeking to dissuade opposition lawmakers from tabling bills aiming to delay the entry into force of the contentious foreclosures legislation.

Two parties have tabled fresh legislative proposals to suspend enforcement of the foreclosures law, pending the enactment of the bankruptcy-related legislation. The insolvency framework, they argue, is necessary as a safety net for homeowners who have fallen on hard times and are unable to keep up with mortgage payments.

AKEL’s bill aims to suspend implementation of the repossessions law until end of June 2015; the other legislative proposal, tabled by EDEK and co-sponsored by DIKO and the Greens, would postpone the law until the beginning of the year – even though the foreclosures law itself does not come into effect until January 1.

The parties appear determined to press ahead with these bills in spite of the finance minister’s warning that any move impacting the repossessions law would jeopardise the disbursement of financial assistance from international lenders that is due by December 15.

Tuesday’s session at the House finance committee is crucial, as the two bills are set to be discussed and the parties expected to give their final positions.

Reports said that AKEL and EDEK intend to push the two items to the plenum for a vote this Thursday.

Earlier this month eurozone finance ministers endorsed in principle the disbursement of the next aid tranche, finding that Nicosia has amended laws on foreclosures and forced sales of mortgaged property in line with a deal with its international creditors.

But the Eurogroup also added that the payout would be recommended “so long as this situation remained unchanged”.

Also on Tuesday, the House finance committee will take a first look at a bill aimed at increasing the government’s direct control over state-owned enterprises, such as semi-governmental organisations. The bill – expected to be hotly debated – would give the government a fast-track method of sacking board members or the entire board of such entities for dereliction of duty or on other grounds.