THE FIRST office of Sotheby’s International Realty Affiliates LLC will open in Cyprus by the end of the year, under an exclusive 25 year licensing agreement that will cover the Eastern Mediterranean region.
Founded in 1976 providing independent brokerages with a
According to a number of press reports, the European Commission has sent Cyprus an official request for information on its laws governing estate agents; it considers these may not be compatible with EU internal market laws.
Cyprus passed a law in July 2007 that imposed conditions on the professional requirements of estate agents from other EU member states. These conditions concern qualifications, professional experience and require would-by estate agents to pass an exam proving knowledge of Cypriot legislation in the subject area.
The European Commission believes these may be contrary to the EU laws on freedom to provide services. Cyprus has two months to respond.
Press reports at: Hemscott, CNBC and Forbes
From Stockwatch Limited:
The European Commission has decided to send Cyprus an official request for information on its national legislation restricting the activities of estate agents.
The Law adopted in July 2007, after an initial letter of formal notice was sent in July 2006 concerning the provisions of Law 273/2004, does in fact pose certain conditions upon the recognition of the qualifications of the professionals of other Member States and imposes limits upon the exercise of this profession by legal persons, as well as upon the freedom to provide services in this sector.
According to the announcement, the Commission considers that these provisions may be incompatible with Directive 2005/36/EC on the recognition of professional qualifications, and with Articles 43 and 49 of the EC Treaty guaranteeing the freedom of establishment and the freedom to provide services within the European Union respectively. The letter of formal notice is the first step in an infringement procedure under Article 226 of the EC Treaty. Cyprus has two months to reply.
“This new Law imposes certain conditions upon the recognition of the qualifications of professionals established in the other Member States. These conditions concern qualifications, professional experience and require would-be estate agents to pass an exam proving knowledge of Cypriot legislation in this area, and therefore raise problems of conformity with Directive 2005/36/EC on the recognition of professional qualifications”, the announcement said.
“Furthermore, the freedom to provide services in this profession is subject to the obligation to collaborate with an estate agent established in Cyprus, which is contrary to the provisions of this Directive and the principle of the freedom to provide services as laid down by Article 49 of the EC Treaty”, it added.
“Lastly, the Law requires legal persons active in this area to exercise this activity as their sole corporate purpose. Furthermore, the person or persons exercising the activity of estate agent in a company are required to exercise this activity exclusively in the company that employs them and may not act independently of their employer either for other persons or companies, or on their own account. These two provisions raise problems of compatibility with Article 43 of the EC Treaty, guaranteeing freedom of establishment”, the announcement concluded.
From the Cyprus Mail:
THE European Commission will ask Cyprus about national legislation restricting the activities of non-Cypriot estate agents, it said yesterday.
It has also sent out a reasoned opinion to Cyprus over the non-recognition of professional qualifications from other EU countries.
In the case of estate agents, a formal a notice was sent in July 2006 concerning the provisions of the law, which imposes certain conditions on the recognition of the qualifications of professionals of other member states, and imposes limits upon the exercise of this profession.
The Cyprus law was amended in 2007, but contains new provisions and conditions that the Commission says may be incompatible with EU directives on the recognition of professional qualifications.
Cyprus has two months to reply to the latest letter.
“These [new] conditions concern qualifications and professional experience and require would-be estate agents to pass an exam proving knowledge of Cypriot legislation in this area,” the Commission said.
“Furthermore, the freedom to provide services in this profession is subject to the obligation to collaborate with an estate agent established in Cyprus, which is contrary to the provisions of this Directive and the principle of the freedom to provide services.”
It said the Cypriot law also requires legal persons active in this area to exercise this activity as their sole corporate purpose, the Commission said.
The reasoned opinion sent on the issue of the non-recognition of qualifications in other professions, was also sent to eight other EU member states.
Reasoned opinions were sent to Ireland, Greece, France, Cyprus, Luxembourg, Hungary, Austria, Portugal and Slovenia, for failing to transpose the Directive to national legislation.
The Directive is the result of the reform of the system of recognition of professional qualifications undertaken by the Commission in order to promote flexibility on the labour markets, further liberalise the provision of services, make the recognition of qualifications more automatic and simplify administrative procedures.
It covers such professions as doctors, nurses, dental practitioners, veterinary surgeons, midwives, pharmacists and architects.
By Jean Christou
Copyright © Cyprus Mail 2008
A lot of the letters I receive from members of the public, as well as MPs and MEPs writing on behalf of their constituents, are about problems people have experienced buying property abroad.
I’m really pleased that lots of British citizens are investing like this throughout the EU – making the most of how easy it is to travel, live and work in different countries – but it’s clear that buying property in other EU states is not always without risk.
Legal systems in other countries are different to those in the UK, and language difficulties can be a cause of confusion. Prospective buyers should ensure that they take all the steps needed to avoid disappointment and sometimes serious financial consequences.
Two of the most popular destinations for UK house buyers are Cyprus and Spain. The FCO’s travel advice pages for those countries warn potential purchasers of the risks involved with purchasing property in these countries and we strongly recommend that people seek qualified legal advice from a source independent from the seller before committing to a purchase.
There have been – and still are – cases where dishonest estate agents and lawyers have knowingly taken advantage of the unwary. But I must emphasise that the FCO cannot become involved with private property disputes and it is important that independent legal advice is sought.
The travel advice for Cyprus contains a link to a document of frequently asked questions on property in Cyprus, containing information useful to anyone considering purchasing a property. The travel advice for Spain also has links to the British Embassy in Spain’s website, which holds further details.
A MAN waiting 13 years for his title deeds has claimed the developer is “fobbing him off” by promising an end in sight to the saga.
Civil engineer Graham John Cooper-Selley told the Mail that despite assurances from the Ayios Pavlos Church to finish all the work required to complete the Kitrikes Village development in Armou as per the planning permit, it still has not been issued with a completion certificate, partly due to alleged problems with the construction of a footpath on the site.
The 68-year-old added that the Church, who is the developer, has been promising an end to their suffering for years.
The applicant for a planning permit was Bishop Chrysostomos, who was granted permission in 1999. A building permit was granted in 2002 well after the properties were completed which was also illegal.
“The Contract of Sale stated that title deeds would be issued not later than four years from the date of signing it in June 1995,” explained Cooper-Selley. “There were many problems regarding this project and it soon became apparent that the developer had no intention of honouring his contract to complete the project as per the relevant permits and then apply for the very important Certificate of Final Approval,” he said.
“We have found out recently, that in May last year, a letter was sent by the District Officer to the developer stating that he did not have to complete the works as per the original planning and building permits.”
Last February, the Paphos Bishopric acknowledged the problem and promised that the situation would be resolved, with people receiving their deeds by the end of the year.
And this January, the Ayios Pavlos Church insisted that all the necessary work had been completed and that it was simply a formality for the issue to move forward.
“I am fully confident that the district officer will issue a completion certificate. Once that is done, we can submit the application for the residents to receive their title deeds,” said a spokesman at the time.
Last week, Cooper-Selley couldn’t hide his frustration, wondering how he was still stuck in the same situation.
“The district and planning officers have not been to the site, to the best of my knowledge. If they had, they would have already raised their objections,” he said.
“When I spoke with the Paphos planning officer, he said that the District Officer does not have the authority to alter the original planning permit as has been done here.”
Cooper-Selley accused the Church contractors of not appearing to know what they’re doing. “The Church tells us not to worry and claim that they will obtain the Certificate of Final Completion but I don’t believe they’ll be allowed to get away with what they’ve done to the footpath and they are just fobbing us off again.”
Aditionally, he says the village Mukhtar examined the site and “immediately told me it was unacceptable to him as this footpath is part of the village road and must be entirely negotiable by foot.”
This week, Charalambos Panayiotou at the Paphos Bishopric challenged Cooper-Selley’s claims.
“For the past few months we have worked on three separate occasions on the footpaths and pavements and have followed the instructions of the District Officer,” he explained. “In fact, we have never received an official complaint about the quality of work on the site.”
He said that everything had now been approved and a final inspection was due to take place after the Easter holidays.
He admitted that there have been problems along the way but could not give a timeframe as to when a Certificate of Final Completion would be issued.
“Everybody got an absolutely fantastic deal all those years ago and have been happily living there ever since, enjoying a great quality of life. We checked with them from the beginning if they were happy and offered, more than once, to refund their money if they were not.”
Upon hearing of the case Denis O’Hare, one of the co-founders of the Cyprus Property Action Group (CPAG) said that issuing a Final Completion Certificate, which comes under Article 10 of the Streets and Buildings Law CAP. 96, is one of the most important legislations for the safety of property purchasers.
“This law is however routinely and conveniently ignored by developers, estate agents and even buyers’ own lawyers,” he said in a statement.
He added that the CPAG has been contacted by many buyers who have suffered due to this law not being enforced.
“Without this Final Completion Certificate the title deeds application process cannot even be started, leaving buyers in the risky title deed trap, for many years in some cases,” he said.
“The CPAG has been very supportive and on their advice I wrote to the Interior Minister outlining the problem once again,” said Cooper-Selley. “It has now been 40 days and despite Article 29 of the Constitution requiring a response within 30 days, I have not heard anything back from them.
“If there is no response, I will have no other course of action than to petition the European Parliament for my EU Fundamental Rights to good administration.”
Copyright © Cyprus Mail 2008
THE CYPRUS Land and Property Owners’ Association (KSIA) and the Cyprus Property Action Group (CPAG) have teamed up to explore ways of fighting for the rights of property buyers in Cyprus.
KSIA is affiliated to the Cyprus Chamber of Commerce and Industry (KEVE) and is a long-standing member of the International Union of Property Owners.
HOUSE prices in Cyprus, in the first quarter of 2008, appear resilient in the face of worsening global economic conditions. From January to March 2008, the BuySell Home Price Index recorded a total increase of 3.3% compared to December 2007, bringing the year-on-year increase to 18.6%.
House prices depicted a 3.6% increase during the first month of 2008, more than covering for the December 1.9% fall. Home prices resumed their upward sloping path during February with an increase of 1%, whilst the quarter ended with a decrease of 1.3% for March. The BuySell Home Price Index closed at 143.64 units (March 2008) bringing the Average Home Price in Cyprus to €191,216 (CYP 111,914).
The BuySell Home Price Index was created and is updated monthly on behalf of BuySell Cyprus Real Estate by MAP S. Platis. The Index is announced quarterly and depicts the movement of prices at which residential properties are sold in Cyprus, based on the extensive BuySell Cyprus Real Estate database.
For more information on the methodology of the Index and on Hedonic Prices please refer to: The “Asking Price and Transaction-based Indices for the Cyprus Housing Market (Rebased)” by Dr. Stelios Platis and Marios Nerouppos of MAP S. Platis.
The BuySell Home Price Index constitutes the only valid gauge of the Cyprus housing market and is considered as an effective tool for home buyers, sellers and investors.
Reproduced from the 1st Quarter 2008 Press Release published by MAP S.Platis.
The chart below has been produced using the figures provided by MAP S.Platis.
(Click to view a larger image)
