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Paphos marina on hold

Nigel Howarth
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A LEGAL battle has erupted over the tendering process for the new Paphos marina at Potima Bay area of Kissonerga that may result in its construction being put on hold.

The Pandora Group (Leptos) was awarded the contract last June following a hotly contested bidding process with Aristo and Pafilia. But Aristo, the runner-up in the contest, objected to the award alleging irregularities in the submission of documents required for the tendering process.

Aristo’s objection was upheld and a committee was set up to examine the situation. Subsequently Pandora’s contract was annulled and the contract to build the marina was awarded to Aristo.

In the latest development Pandora has decided to take the matter to the Supreme Court on several legal grounds. The Group claims it was not consulted during the revision procedures where their initial tender was re-examined. It also claims that the government will lose €2 million a year in rent if the marina contract is awarded to Aristo.

The marina has been the subject of much speculation over the years. With a capacity of 1,000 vessels, the Ministry of Commerce, Industry and Tourism said that it would help enhance quality maritime tourism. However, many critics of the scheme doubt that the facilities will ever be built and have accused the authorities of simply trying to boost property prices in the area with the promise of a marina.

Bizarre twist as entire O’Dwyer court ordered out

Nathan Morley
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COURT proceedings on the first day of the high profile Conor O’Dwyer assault case were adjourned yesterday after defence lawyers expressed concerns that the hearing was being secretly tape-recorded.

In a bizarre twist to the ongoing saga, the entire gallery at Famagusta District Court was ordered out of the chamber and told by Judge Evi Antoniou to “take mobile phones, recording devices, micro cameras or any surveillance equipment to their cars and then return.”

The move came just moments after the session started, when defence lawyers expressed their serious concerns that a message written by O’Dwyer on a local internet forum on Monday stated, “I am producing video evidence for all to see.”

In the same online posting, O’Dwyer also urged supporters to attend the hearing.

“If anyone wants to come along to see justice being served then it would be great to meet you there,” he wrote.

A printed copy of O’Dwyer’s Internet message was presented to the judge, who held up the paper in the air and demanded an explanation.

After several sharp exchanges between the judge and O’Dwyer’s lawyer Yiannos Georgiades, the hearing was postponed until April 30.

The judge also ordered that both parties in the case were not to approach each other, nor enter into any communication or conduct surveillance on each other.

A court translator then added in English, “You must not get close to each other at all.”

After the hearing, O’Dwyer told the Cyprus Mail, his Internet posting had actually meant that he would present video evidence to the court, and not record the actual session.

Despite O’Dwyer’s online call for people to come along, only a handful of supporters turned up at the court and neither O’Dwyer nor the defendants were called to the stand.

Commenting on the hearing, lawyer Yiannos Georgiades said he had never encountered such an incident in court in his career.

The case revolves around claims that a local developer, his son and another man are charged with causing grievous bodily harm to O’Dwyer following an incident outside a disputed house on January 13 last year.

O’Dwyer, 39, spent a week in Larnaca hospital after the alleged attack.

However, in a rare public statement last year, the developers accused O’Dwyer of allegedly masterminding a plan to extort a newer, more expensive property, and exorbitant damages from the company.

The company also added that they had “failed to adhere to his blackmail requests“.

In a separate development, on Monday O’Dwyer blasted Famagusta District Police for refusing to accompany him to the disputed property to take photographs.

According to O’Dwyer, officers point blank refused his request and even told him he may face arrest if he was found to be trespassing.

The case is unusual as every twist and turn in the saga has been published online on his website www.lyingbuilder.com, which has recorded tens of thousands of hits over the past year.

Concerns have been privately raised by some observers that the sheer volume of information made available by O’Dwyer on the internet could influence the outcome of the case.

Copyright © Cyprus Mail 2009

Cyprus property sales on ominous downward trend

David Crowther
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THE number of contracts deposited at the Land Registry gives a good indication of how many new properties are being sold in Cyprus. In the first eleven months of 2008, 14,403 contracts were deposited. This compares to the 19,478 and 15,500 deposited over the same period in 2007 and 2006 respectively.

But what is even more worrying than the drop in property sales is the current downward trend, which is shown by the dotted line on the chart below. Looking forward to the prospects for this year, the signs are very ominous.

Cyprus property sales 2006 - 2008

Property sales surged throughout the whole of 2006 and for most of 2007. They levelled off and started their decline towards the end of 2007. This downward trend continued throughout 2008 with just 782 contracts being deposited at the Land Registry last November.

If sales of new property in Cyprus continue to decline, property developers are not going to have sufficient money flowing into their business to service their debts; a number of them will certainly collapse.

Many will welcome the shake-up in the industry, which will hopefully result in many of the rogues masquerading as property developers being forced out of business. But when this happens the banks to which they have mortgaged their land will look to recover the debt, and those who have bought property on that land are at risk of losing their homes.

Just last week I heard that the administrators had been called into a property developer in the Larnaca District. Could this be an indication of worse things to come?

The Cyprus Government recently assured the British Government that it intends to introduce a Bill to address this issue. But exactly when that bill will be introduced, what it contains and how it will prevent people from losing their homes remains to be seen.

Cyprus golfing villas progress

Nigel Howarth
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THOUSANDS of villas could be built in Cyprus over the next few years if the licensing of 14 golf courses gets the go ahead from Government. The news comes at a difficult time for the construction industry, which is already being affected by the huge number of unsold properties on the market.

The procedure to obtain licences for the golfing developments has now entered its final stages. On January 26th the Council Committee will re-examine the revised policy proposal, which will then be submitted to the Council of Ministers. Once the criteria for the golf courses have been agreed and finalised, the Committee will allow the applications to be examined during in the first 15 days of February.

“In the meantime, the Council will examine certain reservations that have been expressed by businessmen during their last meeting with Commerce Minister, Antonis Paschalides“, Commerce Ministry General Manager, Efstathios Hampoullas told StockWatch.

Those reservations concern the maximum sum the businessmen will have to submit to the government to secure a license; currently the minimum sum is €5 million. But this may be increased when the benefits to the businessmen involved in the projects have been re-assessed.

The Committee also needs to finalise the proposal for the use of reclaimed water for irrigation.

Irrigation and bank guarantees

According to Mr. Hampoullas, there are two main points contained in the new provisions:

The proposal “provides that the irrigation and water supply of the project must be carried out by desalination plants that will use electric power from renewable sources of energy. The plants will be made either in cooperation or as individual units by the businessmen“.

Also, the government introduced one more provision: “the double guarantee not only for the golf courses but also for the desalination stations. It is about a sum that will be increased every year so as to be in line with the season”. “The bank guarantee is deemed necessary in case that a businessman is no longer willing to deal with the operation and maintenance of the course. The government will be able to take advantage of it“, Mr. Hampoullas said.

Licenses

The revised proposal provides for up to 14 licenses to be granted. Most of these are in Limassol and Paphos. Others have been submitted for Tersefanou in Larnaca and another for the Ayia Napa municipality. Licenses for projects have been given to Kouklia and Geroskipou and new applications have been submitted for the Randi Forest project and the project in Tsada.

Theodoros Aristodemou, Demetris Karapatakis, Plato Lanitis and Nicos Shacolas have all expressed their interets in these projects.

Provisions

According to Mr. Hampoullas, the number of villas to be built will depend on the size of the course. However, the minimum area for each villa will be at 120m2 and the golf courses 5,000m2. Each course must be provided with green areas of 200 donums and sports facilities.

The Cyprus Sports Organization will control of the sports facilities and the Cyprus Tourism Organization will control the leisure facilities.

“Cyprus will become a more competitive destination since golfers like to visit different countries and to organize several tournaments“, he said.

Tourist facilities

The hotel development will remain as it is with 5-star hotels or tourist villages of ‘A’ category or luxury.

The tourist development will not exceed 20% of the total permitted public area, while the hotel will be built on three floors and have a maximum height of 3.10 metres.

Brits buying property in Cyprus get new government advice

Nigel Howarth
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THE UK Government has recently made some changes to the guidance it issues to UK citizens buying property in Cyprus.

This revised advice can be found on the British Foreign & Commonwealth Office (FCO) website on its Travel Advice for Cyprus page in the General – Purchasing Property section. However, the overall level of advice provided by the FCO renains unchanged.

To help avoid the potential problems associated with purchasing property on the island I urge anyone planning to buy property in Cyprus to take heed of this advice, which I have reproduced below for your convenience:

Purchasing Property

THERE ARE RISKS involved with purchasing property on the island of Cyprus. Many British nationals who buy property face problems due to misleading advertising, or because they do not have title deeds, or they have purchased off plan and the property has not been completed, or their property or neighbouring properties have been constructed illegally or taxes have been charged incorrectly.

THE PROCESS of achieving legal redress in Cyprus can be very protracted compared to the UK. You are strongly advised to proceed with caution and to seek qualified legal advice from a source that is independent from anyone else involved in the transaction, including the seller, before purchasing property anywhere in Cyprus. You should also note that the Cyprus legal system is not the same as that in the UK.

THE OWNERSHIP of many properties is disputed across the island, and particularly in northern Cyprus, with many thousands of claims to ownership of properties from people displaced during the events of 1974.  Purchase of these properties could have serious financial and legal implications.  The European Court of Human Rights has ruled in a number of cases that owners of property in northern Cyprus prior to 1974 should continue to be regarded as the legal owners of that property.  Purchasers could face legal proceedings in the courts of the Republic of Cyprus, as well as attempts to enforce judgements from these courts elsewhere in the EU, including the UK.  Potential purchasers should also consider that a future settlement could have consequences for property they purchase in Cyprus (including possible restitution of the property to its original owners).<

The leaders of both communities have agreed to re-start settlement negotiations. Property issues will clearly form a key part of those negotiations. Until those negotiations are concluded and a comprehensive settlement agreed, the issues and risks identified above will continue to apply and buyers should exercise due caution.

IF YOU have purchased a property and are encountering difficulties, you should seek qualified independent legal advice on your rights and methods of redress.  The foreign and commonwealth office does not offer legal advice or become involved with private property disputes, although we may be able to direct British nationals to organisations who may be able to help.

The website of the British High Commission in Nicosia contains information about purchasing property in Cyprus, including frequently asked questions, and information for people who are experiencing difficulties with a property purchase.  This can be accessed via the following link: http://ukincyprus.fco.gov.uk/en/help-for-british-nationals/living-in-cyprus/buying-property.

On 20 October 2006 a criminal code amendment relating to property came into effect. Under the amendment, buying, selling, renting, promoting or mortgaging a property without the permission of the owner (the person whose ownership is registered with the Republic of Cyprus Land Registry, including Greek Cypriots displaced from northern Cyprus in 1974), is a criminal offence. This also applies to agreeing to sell, buy or rent a property without the owner’s permission. The maximum prison sentence is seven years. Furthermore, the amendment to the law states that any attempt to undertake such a transaction is a criminal offence and could result in a prison sentence of up to 5 years. This law is not retrospective, so will not criminalise transactions that took place before 20 October 2006. Documents relating to the purchase of property in northern Cyprus will be presumed by the Cypriot authorities to relate to the illegal transfer of Greek Cypriot property and may be subject to confiscation when crossing the Green Line. Anyone in possession of these documents may be asked to make a statement to the Cypriot authorities and may face criminal proceedings under the 20 October 2006 amendment.  Any enquiries about the full implications and scope of this legislation should be made to the Republic of Cyprus High Commission in London.

TIME SHARE and property salespersons tout for business in Cyprus, especially in the Paphos area. You should read the fine print very carefully and seek legal advice before signing any kind of contract. Under Cyprus law, purchasers of time shares are entitled to a 15-day “cooling off” period during which they should receive a full refund of any money paid if they change their mind.

Britain keeping watch on Cyprus title deeds fiasco

Jean Christou
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BRITAIN will take a close interest in measures taken by the Cyprus government to sort out the problems of property buyers left without their title deeds, a written answer to the House of Lords has said.

Two questions were placed before the Lords last November detailing the concerns of some property buyers worried about the implications of not holding legal ownership to their properties.

For them, the issue became more urgent as the global credit crunch began to bite into the real-estate sector with the possibility of foreclosure by the banks on the developers who still hold titles.

The average wait for title deeds in Cyprus is 10-15 years, and there are around 100,000 home owners still waiting, 30,000 of whom are foreigners.

Answering on behalf of the government, Lord Malloch-Brown said the British High Commission had raised the issue with the Cyprus government.

It had received assurances that the Cyprus government intended to introduce a bill to address this issue.

“The [British] government recognises that this issue has the potential to affect a large number of British citizens who have purchased property in Cyprus, and will continue to take a close interest in the measures by which the Cypriot government attempt to resolve this problem,” the written answer said.

To a second question asked by Lord Jones of Cheltenham, Lord Malloch-Brown said Britain’s travel advice for Cyprus advises British citizens who encounter difficulties as a result of purchasing property in Cyprus to seek qualified legal advice on their rights and methods of redress.

“This would include difficulties in obtaining deeds to property to which the purchaser is entitled,” the answer stated.

It said although the British government was unable to become involved with individual cases, the High Commission in Cyprus did support community associations in Cyprus dedicated to resolving the problems of property buyers, and gives details of those associations on its website.

The main group advising British buyers is the Cyprus Property Action Group (CPAG), which kick-started the lobbying campaign in Britain.

CPAG’s Denis O’Hare told the Cyprus Mail yesterday it was interesting that the Cyprus government had said it was going “to fix” the problem, given that only a few months ago the Interior Minister told the group it could not be fixed.

“This is understandable because of the €4 billion in [developers’] outstanding loans, which stops this being fixed,” he said.

“We will be interested to see if the Minster can come up with a solution, Last year, he said he couldn’t so we want to know how. We can’t see how when there are four billion reasons why he can’t.”

Copyright © Cyprus Mail 2009

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