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EU petition launched on Title Deeds

Lucie Robson
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A PAPHOS based group lobbying for government action on withheld Title Deeds has taken their EU canvassing one step further.

The Cyprus Property Action Group (CPAG) has launched an online petition to the European Parliament on articles 17 and 38 in EU law, which it says are being violated by the ‘unregulated’ property sector in Cyprus. Respectively, the articles refer to property and consumer protection.

“It gives no one at CPAG any satisfaction, that after nearly two years of lobbying the government we now have to resort to these other channels of appeal,” CPAG spokesman Denis O’Hare told The Cyprus Weekly. “It is due to the failure of the Cyprus government to act in the best interest of the people, both Cypriot nationals and the tens of thousands of foreign buyers who have done so much to support the economy over the years.”

CPAG was set up in 2007 with the aim of working with the government to address irregularities in the property sector. It cooperates closely with the Cyprus Land & Property Owners Organisation (KSIA). Their joint objective has been to protect the important property sector and to avoid damaging the image of Cyprus as an attractive property market. But after a continued lack of response to their overtures, including the presentation of a government commissioned report on the pitfalls of the sector, CPAG has decided the time has come to canvass beyond the Cyprus government.

“We are flabbergasted and mystified at the utter lack of response from the government on this,” says O’Hare.

CPAG has drafted an example petition to provide an outline text that can be altered if the petitioner thinks it necessary. It does not pay the Cyprus property market any compliments describing home buyers without deeds as ‘routinely defrauded’ and ‘financially exploited by developers’.

The lobby group thinks that potential impact of the petition is huge.

“The European Parliament recently froze hundreds of millions of euro in EU payments to Spain as a result of illegal practices in that country perpetrated against property buyers,” says O’ Hare. “This was largely a result of buyers petitioning the European Parliament through a similar type of petition that we have set up.”

It is estimated that 100,000 properties in Cyprus are without Title Deeds and developers have taken out €4 b of mortgages on the plots where they are built. Most are concentrated in the Paphos and Protaras areas.

But O’Hare says that the picture is getting even uglier.

“First of all, we were shocked to discover that the land where fully-paid for homes are located is mortgaged. Now we have learned that there are some cases where the developer hasn’t made any effort to pay back their loans for years. The lending banks in Cyprus do not really care because they are secure in the knowledge that, ultimately, the buyers may have to pay off the developer’s loan to obtain Title Deeds. If they can’t pay, then the home can be repossessed. We know of cases where people have been advised by banks that this could be a next step. In the meantime, the banks make a fortune at little risk.”

But with CPAG informing worried home owners without deeds that their properties are at serious risk, can they back this claim up with any cases of properties being re-possessed?

“We have not heard of anyone’s homes being repossessed yet,” says O’Hare. “It won’t happen immediately. But the situation is worse than that. Many home owners are blissfully unaware that there are mortgages on their property which are not being serviced and on which interest is accruing. That a bank can carry out these practices just beggars belief in any just or civilised country, especially an EU member state.”

Copyright © 2009 Cyprus Weekly

End in sight to Title Deed saga?

Charles Charalambous
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sylikiotis
Neoclis Sylikiotis - The Cyprus Interior Minister

Speaking at the annual general meeting of the Land and Building Developers Association (LBDA), Sylikiotis said the legislation aimed at removing the main reasons why developers effectively block the issuing of Title Deeds to the rightful owners of new property.

He went on to say that legislation was in process that would bring an end to the problem affecting the 100,000 properties bought by Cypriots and around 30,000 foreigners, most of whom are British.

The main reason in most cases is that currently land owned by developers can be mortgaged again and again, leaving those who bought properties without their Title Deeds for anything up to 20 years. The average waiting time, even for Cypriot buyers is 12 years.

“Draft bills have already been submitted to the Legal Service for scrutiny, covering the enactment of urban land-redistribution, the transfer of development rights between properties, and the registration of mortgages,” Sylikiotis said.

“Often, land developers – who are probably members of your association – unfortunately end up being part of the problem faced by thousands of Cypriots, EU citizens and others. It is therefore necessary – and here I’m referring to the question of the issuing of Title Deeds – for every organisation involved in land development, including all members of your association, to acknowledge its own responsibilities for the problematic situation we are facing today, rather than adopting the convenient attitude that all responsibility lies with someone else, and none with itself.”

The government has come under increasing pressure especially from foreign buyers who have grouped under the Cyprus Property Action Group (CPAG).

CPAG has taken a number of steps to fight back including lobbying the British government and the European Parliament.

“This is a complicated issue, one which is continually raised with me and discussed. It is also raised regularly in the European Parliament and the UK Parliament,” admitted Sylikiotis.

“Deals are being done and work started on the basis of an understanding, and because of this, when dealing with a Briton, for example, we must be careful not to send the wrong message,” he added.

He then referred to other proposals, including draft legislation, that have already been prepared as part of responding to the current situation.

“Regarding the transfer of mortgages, without wishing to build up expectations, a draft bill has been approved by the Legal Services, and I hope we will soon be able to submit it to the House of Representatives for scrutiny and approval. At the same time, we are in the advanced stages of working out amendments to the legislation covering construction and town-planning, as well as the registration of property ownership, with the aim of achieving the overall and particularly ambitious objective which some people are describing as a town-planning amnesty,” he added.

The Minister made it clear that he was not fudging the question of Title Deeds: “I am requesting figures from the Land Registry on a monthly basis in order to monitor how the issuing of Title Deeds is progressing, and with the new legislation in preparation, I am hopeful we can make progress on this issue soon.”

While acknowledging that “some colleagues” may have been responsible for the problems relating to Title Deeds, LBDA President Lakis Tofarides also blamed cumbersome government bureaucracy.

“There is not one civil servant working in the Land Registry who can issue a Title Deed on their own,” he said.

He suggested that if the government decided it did not have sufficient resources in place, it could outsource the work. In his view, cost would not be an issue, as “the government will earn millions of Euros by getting the Title Deeds issued resolved.”

Copyright © Cyprus Mail 2009

Cyprus property sales continue to fall

David Crowther
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ACCORDING to Cyprus Land Registry figures, the number of contracts for the sale of property fell by almost 55% in April this year compared to last. This follows the earlier reported 65% fall in January, February and March of this year compared to the same period in 2008.

Although the areas most hit by the decline are Paphos, Larnaca and Famagusta, which are highly dependent on sales to overseas buyers, Nicosia and Limassol have also been affected.

The Land Registry figures confirm the considerable decline in the once booming Cyprus property sector and corresponds with similar falls in government tax receipts from property sales and new loans provided by the commercial banks.

Cyprus developer appears in court

Nigel Howarth
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THE ASSAULT case involving a Cyprus property developer and Conor O’Dwyer finally got underway at the Famagusta District Court yesterday, with judge Evi Antoniou presiding.

The case concerns an alleged attack on Mr O’Dwyer by a local property developer, Christoforos Karayiannas, his son Marios and a third unnamed man causing him grievous bodily harm. The alleged incident took place more than a year ago in the village of Frenaros near Ayia Napa and resulted in Mr O’Dwyer being hospitalised for six days.

Earlier proceedings were postponed after defence lawyers expressed concerns that it was being secretly tape-recorded. And when the case restarted on April 30th, it was postponed yet again when one of the defendants failed to appear.

Yesterday, the court heard Conor O’Dwyer describe details of his alleged beating and the Police presented several items of blood stained clothing O’Dwyer was wearing during the alleged assault.

Conor O'Dwyer pictured in hospital following his alleged beating
Conor O'Dwyer pictured in hospital following the alleged assault

The dispute that led to the alleged assault centres on the cancellation of Mr O’Dwyer’s contract by the property developers some half way through payment, even though the house that he and his wife had bought in Frenaros was already registered in his name at the Land Registry.

O’Dwyer had complained because he said the developers were not keeping to the original plans he was paying for. They then cancelled the contact accusing him of not paying the next instalment. The developers then sold the house to someone else, telling O’ Dwyer they were keeping his £75,000 sterling for damages.

Countering Mr O’Dwyer claims, a statement from the developers alleged that O’Dwyer had masterminded a plan to extort a newer more expensive property and exorbitant damages from the company.

“After the cancellation of the contract, Mr. O’Dwyer set his plan in motion seeking for his revenge. A revenge originating from the fact that the value of the house he would have bought increased due to the current value housing boom.”

Mr O’Dwyer has published details of his dispute on a website at www.lyingbuilder.com and last year spent 74 nights camping outside the Cyprus High Commission in London in his quest for justice.

The court case against the three accused continues tomorrow.

Property market recovery in 2012?

Nigel Howarth
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A RECENT  mini-poll conducted by the online Cyprus Property Magazine revealed that more than 60 percent of those who voted believe that the property market will not recover until 2012 or later, while less than 1 in 10 believe it will recover this year.

Sales of property have fallen by 65% this year and with Capital Gains Tax revenue receipts down by 83% compared with last year, the outlook is looking bleak.

Cyprus Property Market Recovery - Poll Results
Cyprus Property Market Recovery - Poll Results

The Buy Sell Home Price Index indicates that prices fell by 1.7% during the first quarter of the year. But  their figures conflict with those from other sources that say that the prices of tourist properties have fallen by as much as 20%.

For the latest poll “By how much will Cyprus property prices go up or come down this year?” go to the Cyprus Property Magazine and check out the ‘Have Your Say’ poll in the right hand column.

Paphos timeshare companies desperate to clean up image

Bejay Browne
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PAPHOS timeshare and holiday ownership companies are desperate to clean up their aggressive image and want to continue to operate in a regulated and policed fashion.

Brendan Surgenor, CEO of a Paphos-based company specialising in holiday ownership, contacted the Cyprus Mail after a recent story highlighted aggressive touting in the seaside resort.

He pointed out there are three main companies operating these services using touting methods, and they all wish to be licensed and legal.

“I agree that there are some operatives who are aggressive, and there are areas of Paphos where there are far too many concentrated in one place, such as the harbour.

“It would be a good idea if, for example, each company was allowed five representatives, who would be in coloured uniforms with ID badges. Then people would be able to identify them and complain if they were treated aggressively. It could be a case of three strikes and you’re out. This is common practice all over the world.”

Timeshare or holiday ownership can either mean a form of part ‘ownership’ of a property or the legal right to use a particular property, depending on the terms dictated in the contract.

Surgenor has a 20-year history in the timeshare industry, including in Greece, and has been operating in Paphos for four years as the CEO of a company involved in holiday ownership including, Interval International, RCI, and which has exclusive rights to international cruises and excursions in Cyprus.

He stressed, “I’ve approached the Paphos mayor Savvas Vargas on a number of occasions to request a licence as this would be of help to all of us. We want to be policed and regulated, but I was told this wasn’t possible. We want to work with the mayor,” he added.

Surgenor believes holiday ownership is a good thing for Cyprus and says figures suggest it brings in around €10 million a year in tourism revenue. According to Surgenor, even when times are lean, time-share properties are 50-60 per cent full.

Touts are fined €85 a time if they are found to be harassing members of the public. Surgenor has calculated that this money amounts to €3,000-4,000 a month.

“We aren’t ignorant to the situation,” he said, “and we are asking for professional help, I want to get involved with the relevant officials to discuss what we can do.”

The sharer has no claim of ownership over the property, and may have a number of options attached to the agreement such as gifting, internal sale, or the right to rent it out for a specified allotted time.

Established holiday ownership companies in Paphos include, Karoushi, Leptos and Panareti. But they don’t necessarily use touts on the street. Leptos sell their holiday ownership internally and Surgenor believes this is because they don’t want to be associated with these types of problems.

He added, “We are all on very good terms and I often have Cypriot companies knocking on my door, especially since the global financial crisis.”

Surgenor believes timeshare to be an outdated term that only refers to fixed weeklong holidays, whereas holiday ownership is more flexible.

“I would like nothing more than to sit down with the CTO, the mayor and the police and sort out a strategy.”

And what if this meeting isn’t forthcoming?

“I plan to clean up the mess, bring down the numbers of representatives on the streets, and legalise the touts to a specified number per company,” he advised, “There are many dotted around Paphos; it’s not just on the seafront and in the market.”

Surgenor added, “I’m continually asking for a license and the last time we requested one was about three months ago.

“I was again told there isn’t one that could apply to us. Instead, via a member of the municipality who pointed me in the right direction, I have rented a small shop in the market.

“I don’t need as many people on the street, and I have exhibitions inside. People are inquisitive and come into me; it’s getting rid of the need for touts. But it still really needs to be controlled.”

Countries such as Spain, the Canary Islands and Malta are policed and controlled.

Countries such as Spain, the Canary Islands and Malta are policed and controlled, and Surgenor believes this approach is more professional.

“We have highly trained staff who have worked in the industry before, but sometimes there are those who are badly trained, and have no idea what they’re doing. I mean, you can’t have three people in the harbour and 15 touts, it’s ridiculous.”

Surgenor said he represents the views of all the holiday ownership companies in Paphos, and pointed out that most are owned, or connected to Cypriots.

“It will be a lot nicer if we could be registered, and have five out on the streets instead of 40.

“We all want to listen, and don’t want to break the laws, and I would love to approach the mayor again if he would sit down and listen to me. I know he embraces the idea of holiday ownership, but not the presence of touts on the streets, and this way of marketing.”

Surgenor insists he is using other methods of promotion.

“People come into my shop of their own free will, and I’m just opening a second one.”

“It’s now down to the municipality if they would like to meet up. If there is no control, things get out of control; it’s just common sense. My door is always open.”

Copyright © Cyprus Mail 2009

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