WITH reference to previous Parliamentary Written Questions E-0110/09 by Syed Kamall, E-6793/08 by Mary Honeyball and E-6513/08 by Caroline Jackson, and with a view to the new legislation that is about to be put in place by the Cypriot Government to address the problem of withheld title deeds, would the Commission answer the following questions:
How many individual properties whose sales contracts are lodged at the Land Registry in Cyprus are encumbered with developer mortgages? How many of these have been sold to Cypriots and how many to non-Cypriots?
What is the current balance of the total mortgage debt of Cypriot developers and the percentage increase, year on year, over the last three years?
Daniel Hannan is a writer and journalist, and has been Conservative Member of the European Parliament for South East England since 1999. He has appeared in numerous television programs and has his own YouTube Channel which contains more than 130 videos. You can also find him in the news section of the Daily Telegraph.
British couple Janet and Keith Smith (Source: Cyprus Mail)
A BRITISH couple is planning to sue property developer Tsaggaris Developers of Avgorou, after he allegedly sold them an unfinished and illegally built house, demanded additional payments and then waged a campaign of harassment that has “destroyed” their lives.
Janet and Keith Smith say the harassment began after they learned their first lawyer was simultaneously representing the developer, and had stalled their planned legal action. Having appointed a new lawyer, the couple said their home was attacked, cement thrown in their pool and their car tyres slashed.
Fortunately, the Smiths seem to have found an ally in the President’s Under Secretary, Titos Christofides, who has promised to support them by preventing delays in the court case and launching full investigations into the lawyer and the developer.
“At the end of the day this is a tragic story,” Christofides said yesterday. “I think that they are right, but they are in a difficult position from a legal point of view. We (the President’s Office) cannot solve the problem but we try, as far as our office’s responsibilities go, to make sure that it is solved in an honest and proper way.”
He added: “All our sympathies are with them.”
Like many British couples, the Smiths came to Cyprus with dreams of a fresh start in a sunnier climate. In the wake of a family tragedy, they sold their home in the UK and bought a house in Avgorou in Famagusta for €205,000.
Janet Smith said: “We have been coming to Cyprus for years, and after our daughter died we decided to bring our grandson here for a new start. He is fifteen now but he’s been in our custody since he was three.”
However, when they arrived in March 2009 to begin their new life, they discovered that their dream home property was incomplete, drawing electricity from next door and without its own supply of running water.
In the meantime they said the developer started demanding payment to complete the property’s basic infrastructure, such as steps outside and a water tank on the roof. The Smiths also claim he took an advance for a swimming pool and air conditioning which he has not completed.
“The electricity was off more than it was on, and he (the builder) started demanding money for work on the house. At that time we were very vulnerable and so we continued to pay” said Smith.
With escalating costs and their savings dwindling, they sought legal help. However, after months of pressing their lawyer, it transpired that he also represented the builder.
The Smiths found another lawyer, after which the relationship with the builder became hostile, they said, as he allegedly refused to plumb the house into the water mains, or connect the house to the electricity grid.
The couple then fell victim to a campaign of harassment that caused untold misery, health problems and further costs. “Once, the girlfriend of the builder arrived at the house and began verbally abusing me, saying that nobody would support us because we were English, and telling us to go home. I was frightened.” Smith reported the incident to Xylofagou police, who cautioned the woman on February 26.
“It’s destroyed us. It has made me very ill, we’ve run out of cash and we’re being harassed out of the country.” said Smith, who says the ordeal has exacerbated her diabetes and cost them thousands in flights, to and from Cyprus, furniture shipping costs and rent in the UK.
The attacks also had affected their 15-year-old grandson, and just months after moving in they sent him back to the UK to live with one of his aunts because he did not feel safe.
In desperation, the Smiths went to the Presidential Palace and insisted on having their concerns heard.
They are due to go back to the UK later this week, returning to Cyprus for the trial. “I don’t want to disrespect this country, but we feel we don’t want to be here anymore. We just want our money back and to make sure this does not happen to any other families.”
The couple wants to hear from any other house buyers with similar experiences and have invited them to phone on +442476346210 or +447977825768
NORSK Megling will promote Aristo Developers’ stock in Cyprus, alongside its existing portfolio of homes across Europe, the US and Brazil.
Aristo has seen growing interest from the Scandinavian market over the last four months, according to the firm’s marketing manager, Panayiotis Michaelides.
“We see that Norway’s economy has been particularly resilient during the financial crisis with a relatively shallow recession and moderate increase in unemployment,” he said.
“Our exclusive partner, Agnar D. Carlsen, managing director of Norsk Megling, strongly believes the same as we do – Aristo and Norsk Megling joining forces can achieve quite good results under the given circumstances.”
Aristo has been selling to Scandinavian buyers for the last eight years, and has had an affiliate office in Stocholm, Sweden, for four years.
“In light of the fact that we are now about to launch some new signature projects we strongly feel that we need to empower our position on these markets, Norway and Sweden being the two countries we believe have great potential for further growth,” said Michaelides.
ACCORDING to figures released by the Department of Lands and Surveys, 803 contracts of sale were deposited at Land Registries throughout Cyprus during May, the highest number since July 2009.
Throughout the first five months of 2010 the number of contracts of sale deposited at Land Registries throughout Cyprus amounted to 3,544 compared to 2,838 during the same period last year; an increase of 25%, with Nicosia and Limassol keeping domestic demand at a higher level than last year.
However, last years figures were exceptionally low and overall sales this year are still down by more than 60% on the numbers sold during the same period in 2008.
Source: Department of Lands and Surveys
Overseas sales
THERE are also encouraging signs that the number foreigners buying property is increasing, with the number of contracts deposited at Land Registries on behalf during the first five months of the year up by 7% on the same period in 2009.
Nicosia is doing particularly well with property sales to non-Cypriots up by 92% this year followed by Famagusta, where sales have risen by 10%.
But in the other coastal towns, which are largely dependent on external demand, sales are not doing so well. Sales in Limassol are down 6%, in Larnaca they are down by 4% and in Paphos they are down by 3% compared to last year.
Last years figures were exceptionally low and sales to non-Cypriots this year are still down by almost 80% on the numbers sold during the same period in 2008.
SO FAR lawyers in Cyprus have had it easy. We often hear in the media that such and such a developer, estate agent or other professional is “crooked”, but God forbid this being said about Cypriot lawyers.
We dared (!!!) mention this class of professionals a couple of years ago and, in our desperation at the ill goings on, we decided to set up a one-stop shop, advising clients on “correct” lawyers.
One accounting firm has decided to do the same for its own business (registration of companies, directorships etc), using in-house lawyers; but under pressure from the organised lawyers’ groups has changed its plans and its original department of 10 advocates is shrinking fast.
So, by extension, we decided, at least at this point of time, not to proceed with our “one-stop shop”.
But provocation has its limits. Examples are plentiful – but the prime locations of the wrong goings are in Paphos.
Having said that, we stress that we do not accuse all Paphos lawyers, but the town has an unusual high percentage of wrong doings by lawyers, in comparison to other cities in Cyprus.
A contract which was given by us to a lawyer to copy/prepare, was done without even changing the number of the apartment. We can understand this may have been a human error, but our client was charged €2,500 and we were annoyed.
We sold an apartment from a desperate owner (who was dying of cancer). The seller’s lawyer demanded full payment of the sales price prior to signing the contract. We were given the information” that this lawyer wants a cut”, to which we said no. The end result and after three months of waiting, the deal fell through. At the time we could not persuade the seller to change this lawyer, nor for the buyer to place the full purchase price in an escrow account held by a commonly acceptable reliable person (e.g. Bank Manager etc).
A most recent (this week) event was that we have concluded a sale of an apartment in Paphos for €60,000 and received €5,000 as a reservation fee paid to the lawyer. The lawyer of the seller asked for €1,000 extra over and above the agreed price. We communicated with the seller only to be told that he never asked for more money!! Money in the pocket of the Paphos lawyer??
A sales contract in some offices needs anything from 1-2 months to be prepared – a routine contract should not take more than 7 days.
Have you ever tried to find a way out in this sort of a situation? We doubt that you will get anywhere. How can you prove, for example, in the last instance that the extra €1,000 required by the lawyer would not have gone to the seller (if we report this to the Disciplinary Committee of the Lawyers, we stand to be sued for damagers for libel etc)?
A senior politician told me recently “Antonis have you not understood that this is a lawyer-run country”? He is absolutely right, whatever bill goes through the House there must be “something” to the benefit of the lawyers.
Suffice to say that a majority of our MPs are lawyers.
We are copying this article to the Disciplinary Committee of the Lawyers Association for whatever it is worth, but then without any concrete evidence we do not have a chance.
We are ending this article by adding that we must stress that there are numerous good offices in Paphos, which offer better quality of work than in other towns, but you must know who is who (with special regard to the foreign clients in particular this is very difficult).
The British High Commission in Nicosia publishes a list of English speaking lawyers, a copy of which may be found in the article ‘Lawyers, law firms and legal advice’. Anyone requiring “correct” legal advice, information or representation on any matter is urged to contact a lawyer on the High Commission’s list.
A NUMBER of my constituents have raised concerns regarding the lack of protection of citizens’ property and legal representation rights when purchasing an immovable propriety in Cyprus. Various cases of fraud in the Cypriot housing market have been recently highlighted in the Cypriot press and on UK television.
The chronic delay in the issuance of title deeds and loopholes contained in the Specific Performance Law create serious problems for purchasers regarding ownership, finance, re-sale and other matters. Developers, retaining their title deeds, are free to reschedule or extend existing mortgages without the buyer’s permission.
In the event that the developer becomes insolvent, citizens who have legitimately bought property in Cyprus may see their homes repossessed.
I am aware that the Commission has already responded to questions put forward by my Parliamentary colleagues on this subject (Joint answer to Written Questions E-6513/08, E-6793/08 and E-0110/09) but separately, albeit related to this, it has also been brought to my attention the difficulties associated with seeking legal remedies to the problems described above. Accusations have been made that some lawyers engaged to deal with property transactions deliberately or neglectfully fail to perform the relevant checks. Further, on 13 January 2010, the Cypriot Parliamentary Human Rights Committee heard that lawyers were refusing to represent members of the public who wish to take civil action against other lawyers.
Is the Commission aware of the lack of protection regarding property rights and legal representation rights in Cyprus? What action does the Commission propose to take in order to properly protect EU nationals’ rights?
