Limassol marina workers start industrial action

Nigel Howarth
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4

CONSTRUCTION workers at the Limassol marina went on strike today to complain about a breach of contract from their employers.

According to the striking workers, parts of the project have been given out to sub-contractors who are mainly using cheap foreign labour for the job.

The secretary of the Limassol branch of the Pancyprian Federation of Labour (PEO) trade union said that the duration of the strikes all depends on the stance taken by the employers, adding that by breaching the terms of employment, Cypriot workers remain unemployed.

Meanwhile, the secretary-general of the Cyprus Workers’ Confederation (SEK) union’s construction branch said that the company is employing fifty people for all of the work instead of the two hundred it was supposed to hire and that the rest is under sub-contract.

Is it unreasonable to reject properties without deeds?

Antonis Loizou FRICS
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0

OUR sales team has noticed that foreign (in particular) buyers demand that a Title Deed be issued prior to proceeding with an acquisition. This is very logical and understandable.

Yet there are numerous units/projects which have a Building Permit, a Certificate of Final Approval and the seller even offers a bank guarantee the titles will be issued within a certain period, a mortgage release, etc., as well as helping with the financing of the buyer.

Yet, buyers, most notably in the Paphos region, where the Property Action Group has produced such alarming reports (some of them quite justified, others not) that even sellers who are “clean” have a problem.

The same situation does not apply to other towns and based on the parameters that we have given to potential buyers under our “10 Building Commandments” (visit our web-site) there is still a problem.

An exaggeration and an unreasonable demand, but on the other hand the “no title” slogan has been driven into the minds of buyers.

So, we are aware of the delays regarding the title issue etc., but if you are offered a bank guarantee, stipulating the date of issue of the titles, we feel that this is in some cases practically better than the title issue, since you get your money and interest (on top of the use of the unit for x years before) if the titles are not issued. So where is the problem?

Some people who got a bank guarantee are using this as an excuse to get their money back at times they know they cannot sell their unit even at the original cost. We have a buyer in Limassol who bought his apartment for €120,000 with a bank guarantee for a date of title issue, the titles were not issued on time with one year delay (they are at the Land’s Office and expected to be issued say within 12 months).

He called in the bank guarantee which with interest etc., came to €150,000, he got the cash and he is still holding the apartment which he is renting out. So, for an apartment now worth say €200,000, the buyer got €150,000 in cash, is still renting it and can sell it for €200,000!!

Bank guarantees should, in addition to the original purchase price and interest, contain a clause which should say that if a buyer wishes to call in the bank guarantee, he should return the apartment to the seller, otherwise it makes no sense.

Have we gone the other way during these difficult times with unreasonable demands? And if a “developer” is under such bank guarantees, with the buyers claiming them and living at the same time in the unit, will he not go under (How is he going to pay the bank guarantee to the bank if he cannot sell the property)?

In addition, if he has mortgaged his remaining assets, which are not affected by mortgage at all, but the bank cannot get a refund from the seller (since he is not able to sell the property) will the bank not freeze the developer’s other assets, and as a result create problems for unaware and free of mortgage property owners?

We wrote to the bankers association that the issue of unconditional bank guarantees was wrong. We wrote also to the Governor of the Central Bank on the same subject, indicating also that at the end of the day, this situation will cause a number of banks to collapse, with a knock on effect on their profitability and its shareholders. Who is listening, however? Lack of knowledge, too busy to look into details and indifference, as well as non forward thinking, are a recipe of disaster for everyone – banks, sellers, buyers etc.

As we have said, we wrote to the Governor of the Central Bank, he has appointed a person to look into the matter, we have explained the situation to this person and he promised to come back to us (year 2009). We are still waiting! We know that this is a siga-siga (slowly-slowly) country, but then don’t you think that there is a limit somewhere?

We, as an office, cannot have a fight with the establishment on all fronts on our own, notwithstanding the fact that we have the support of a number of our readers and the public in general (for those who listen).

By Antonis Loizou, FRICS
Antonis Loizou & Associates Ltd
Chartered Surveyors
Property Valuers – Project Managers
Email: [email protected]
Web: www.aloizou.com.cy

Is it unreasonable to refuse to buy a property in Cyprus without a Title Deed?

Editor’s comments

Readers may obtain a copy of my ‘Golden Property Commandments’, which describes how to avoid the potential problems associated with buying property in Cyprus, by visiting the Free Publications page.

Summary of Cyprus planning amnesty laws revealed

Andreas D. Symeou LL.B, M.Sc (U.L.A.), MRICS
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15

AFTER a long period of discussions and friction, the House of Representatives eventually passed into laws the pack of bills loosely known as «Planning Amnesty» (i.e. the opportunity of legalizing, within a given period of time, existing irregularities in the construction of buildings or the sub-division of building sites).

The planning amnesty is only a part of the whole package, which contains important amendments of the Town and Country Planning Law, the Streets and Buildings Regulations Law and the Immovable Property (Tenure, Registration and Valuation) Law.

The most important provisions of the new legislation are the following:

Temporary provisions (planning amnesty)

Any owner or other interested person may apply, within 3 years from the coming into force of the law, for the issue of a certificate of approval for irregularities that resulted in:

a) an increase of the built up area up to 10%, or

b) a change in the aesthetics of the building or

c) the wrong positioning of the building or

d) the unsatisfactory construction of infrastructure works or

e) wrong construction of a building site.

Any owner or other interested person may apply, within 3 years from the coming into force of the law, for the issue of a planning permit for irregularities that resulted in:

a) an increase of the built up area up to 30%, or

b) an increase of the height of the building or

c) the wrong positioning of the building or

d) wrong distance from the boundaries or

e) the unsatisfactory construction of infrastructure works or

f) the decrease of the area of a building site up to 20%.

Irregularities which have resulted in the increase of the built up area can be traded off by the payment of a sum of money, equal to the value of the extra land which corresponds to the extra build up area, or by the transferring, from another property, (including a listed property), of the extra «building ratio» needed.

Certain acts, like the carrying out of irregularities, false statements, obstruction of an authorised person to carry out his duties under the law, or failure to produce relevant documents or other information needed by an appropriate authority, is a criminal offence punishable by imprisonment or a fine or both.

Other (permanent) provisions

  1. The simultaneous issuing of a building permit and a division permit is made possible.
  2. The issuing a Certificate of Approval and eventually Title Deeds for part of a project is also made possible.
  3. The relevant authorities are empowered to impose an administrative fine on developers and other owners who fail to apply in time or to co-operate promptly with the authorities for the issue of the relevant permits, certificates of approval or Title Deeds.
  4. The issuing of titles with «notes of irregularities» for minor irregularities is authorised.
  5. The issuing of a «certificate of non- authorized works», which eventually leads to the issuing of titles with a note prohibiting the voluntary transferring or burdening of the property is also authorised.
  6. Planning permits, certificates of approval and Title Deeds can be issued after an application of any interested person, in the case where the owner fails to apply.
  7. A certificate of approval can be issued by the relevant authorities on their own accord, where the owner fails to apply.
  8. The production of all relevant documents and the issuing of an up-to-date title by the Director of Lands and Surveys, on his own accord, is possible, if the owner fails to produce the documents or take any other necessary action.

There are many other provisions in the amending Laws which need not be mentioned at this stage.

About the author

Andreas D. Symeou LL.B, M.Sc (U.L.A.) was the draughtsman of the original amendments to the Immovable Property (Tenure, Registration and Valuation) Law, which underwent many changes before being approved by parliament on 24th March.

He is a property consultant and a Member of the Royal Institute of Chartered Surveyors (MRICS) and may be contacted at [email protected]

SNK Venus & SNK Exclusive liquidation proceedings

Nigel Howarth
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0

COURT dates have been set for the start of liquidation proceedings against SNK Venus Home Developers Ltd and SNK Exclusive Properties Ltd.

Clients of either of these companies are urged to read the following notice and to contact Stelios Stylianou at the law firm of Nicolaides Stylianou LLC via the firm’s website at http://www.ns-lawyers.com/

CASES

1. Larnaca District Court Application no. 24/11 concerning S.N.K. VENUS HOME DEVELOPERS LTD.

2. Larnaca District Court Application no. 12/11 concerning S.N.K. EXCLUSIVE PROPERTIES LTD.

This is to advise all the buyers of properties built by either S.N.K. VENUS HOME DEVELOPERS LTD or S.N.K. EXCLUSIVE PROPERTIES LTD that the above cases new court dates are as follows.

Larnaca District Court Application no. 24/11 concerning S.N.K. VENUS HOME DEVELOPERS LTD has been set for directions on 24/05/2011.

Larnaca District Court Application no. 12/11 concerning S.N.K. EXCLUSIVE PROPERTIES LTD has been set for directions on 01/06/2011.

The court in both cases has given instruction to any interested parties to file with the court either written oppositions to the liquidating or either a formal support of the liquidations. Note that, it is settled case law that the court seriously considers not liquidating a company where the oppositions outnumbers the applicants for liquidation in value and in number.

Note also that if the companies are liquidated then the official receiver will take over the control of the companies and this will mean further delay and difficulty in communicating and securing the interests of the buyers. An opposition to the liquidation must be in writing and must be in Greek detailing the interest of the party opposing and/or relation to the company which is the subject of the liquidation and proof must be attached in the form of exhibits to the opposition. The more persons oppose (together) preferably so that legal costs are reduced, the better.

One issue that you may wish to consider along with other buyers is to propose that the court appoint a formal manager and receiver of the company who will NOT liquidate the company and will have the interests of the company in mind and the buyers. This may be viable as the directors of the two companies are not cooperating with each other and thus the company has ceased to operate and because of this, the processes necessary for the issuance of the deeds has stopped.

For further information and advice contact Stelios Stylianou at the law firm of Nicolaides Stylianou LLC via their website at http://www.ns-lawyers.com/

Commission tells Cyprus to lift property restrictions

Editorial
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7

THE European Commission has today asked Cyprus to respect EU rules that give nationals from the EU, as well as from Iceland, Norway and Liechtenstein, the right to buy a second home in Cyprus without restrictions.

Since the accession of Cyprus to the EU in 2004, transitional measures were in force that could restrict such acquisitions but these measures expired in 2009. As Cyprus has not yet repealed these restrictions, the Commission is sending Cyprus a reasoned opinion, the second step in the infringement procedure.

If the Cypriot authorities fail to take satisfactory measures to remedy the infringement of EU law within two months, the Commission may decide to refer the case to the EU Court of Justice.

What is the aim of the EU rule in question?

Free movement of capital is at the heart of the Single Market and constitutes one of its “four freedoms”. It allows for more open, integrated, competitive and efficient markets and services in Europe.

For citizens it means the ability to undertake a range of operations abroad, such as opening a bank account, buying shares in non-domestic companies, or purchasing real estate.

For companies it means the ability to invest in and own companies in other European countries, and to play an active role in their management.

How is Cyprus not respecting these rules?

According to the 2003 Accession Treaty, Cyprus was allowed to maintain transitional measures that imposed restrictions on buying second homes for EU/EEA nationals. These measures would apply for five years after the Accession Treaty entered into force and thus expired on 1 May 2009. By that date, the Cypriot authorities were obliged to repeal the transitional measures.

However, this has not been the case. Since Cyprus has not adopted any new legislation repealing or amending the above-mentioned restrictive rules, the Commission is of the opinion that Cyprus infringed its obligations under the EU Treaty rules on the free movement of capital.

In this context, the Commission refers to the jurisprudence of the Court of Justice, according to which any incompatibility of national rules with Treaty provisions can only be redressed by adopting other binding domestic provisions, having the same legal force as those which require to be amended, and providing for sufficient legal certainty.

How are EU citizens and/or businesses suffering as a result?

As Cyprus is still maintaining the restrictive measures, nationals from the EU/EEA are hampered in their efforts to acquire secondary homes in Cyprus.

Further reading

Europa – Press Releases: Commission acts to ensure unrestricted access to buy a second home in Cyprus

Alpha Panareti named in MEP question

Nigel Howarth
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7

GEORGE Lyon, MEP for Scotland has raised a question in the European Parliament asking if the Commission is taking any action against the Paphos-based developer Alpha Panareti.

Question for written answer E-002885/2011
to the Commission
Rule 117 

George Lyon (ALDE)

Subject: Recourse and redress for citizens defrauded by property investment schemes in other Member States

With reference to the ongoing problems being faced by European citizens who have bought into property investment schemes in other Member States, Cyprus in particular, and have then found that the property developers have acted unlawfully and have been unable to recover their investments,

  • Is the Commission aware of the problem?
  • To what degree can the Commission assist the affected consumers?
  • Is the Commission taking any action already against the Paphos-based developer ‘Alpha Panareti’ or any other major Greek or Cypriot agents or banks?

Further reading: Recourse and redress for citizens defrauded by property investment schemes in other Member States written question to the European Commission E-002885/2011

About George Lyon

George Lyon is a Scottish Liberal Democrat politician, and has been MEP for Scotland since 2009. From 1999 to 2007 he was the Member of the Scottish Parliament for Argyll and Bute, and served as Deputy Minister for Finance, Public Service Reform and Parliamentary Business between 2005 and 2007.

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