Cyprus property title deeds

We have come across some articles where it was stated that "80% to 90% of all owners of Cyprus properties do not have title deeds. Even 95%. These statement and similar statements are irresponsible, are rejected and are made by unqualified persons who do not know the true facts and the procedure relating to Cyprus property title deeds. These articles cannot be linked to buying a home in Cyprus in general and it is not the norm here in Cyprus as some of these articles may contend.

The purpose and reason for this article is to inform our members and visitors concerning this very issue of Cyprus property tile deeds and not however to be drawn into a debate about misleading and an unresearched topic.

Let us fist understand the legal terminologiy. Title is the legal term used denoting the right to ownership of the property and the title deed are the legal documents showing who owns the property. It is these deeds, these legal documents that convey or transfer the title to immoveable property from on person to another. Transfer of ownership in Cyprus is a simple process involving the Cyprus Land Registry office who issues the Cyprus property title deeds.

Immovable properties in Cyprus do indeed have title deeds and we say this with certainty.

When you purchase for example an apartment "off plan" or under construction obviously there is no Cyprus title deed at that present moment as the apartment has yet to be completed. Let us look at the process. I have a piece of land and I wish to build a block comprising of six apartments on the land. I have a Cyprus title deeds. Yes indeed I have as thousands upon thousands of all other owners. Once I have built the six apartments all six will need to have their own Cyprus title deeds as it was my intention to sell all such apartments to different people. If this was not my intention then I would not need to have a separate Cyprus title deeds for each but merely endorse my existing title deed that erected on the land are now these six apartments. As however I intend to or have already sold the six apartments "off plan" or in the process of building them I now need to have a separate Cyprus title deeds for each. This process of issuing a new Cyprus title deeds for each apartment cannot commence until such time as the six apartments have been built. It is this process that we in Cyprus are complaining about. Government officials or inspectors have to first cross check the properties against the plans and permits to ensure that all is in order. This obviously is time consuming and only once this has been completed does it come down to processing and the issuing of the title deeds. This process too is very lengthily to complete. The government officials contend that the delay is due to the huge and growing backlog at the Cyprus land registry. We agree that this coupled with the delays by the municipalities in issuing certificates of approval in causing the delay in the issuing of Cyprus property title deeds.

We reitorate once again that Cyprus properties do indeed have property title deeds but that there is a huge delay in the issuance thereof as outlined above. According to Cyprus legislation "no person shall occupy or use, or cause, or permit, or suffer any person to occupy or use, any buildings unless and until a certificate of approval has been issued in the respect thereof by the appropriate authority". Without a certificate of approval a purchaser or owner cannot thus legally live in the property. If you purchased one of my six apartments referred to above do not thus accept delivery of the apartment unless I have provided you with a certificate of approval. You can and ought thus to include a clause to this effect in your contract of sale. In fact you can take it a step further and include a damages clause to be paid to you by the owner if this does occur. In addition to this you can and ought to include a further clause in your contract that if the Cyprus property title deeds are delayed due to the developers default you will be paid additional damages.

For all the above and many more suggestions on our website we recommend that obviously you do not negotiate these terms or clauses personally but rather engage the services of a solicitor and obtain advice as you ought to do anywhere in the world and not in Cyprus alone.

We join issue with the persons who have voiced their concerns that the procedure for the issuing of the Cyprus property title deeds is to be addressed and to be simplifiied so that purchasers do not have to wait for several years before their Cyprus title deeds are issued. In fact we firmly believe that there is now than ever before a very real need for the government to visit and address those issues and change or to at the very least reduce the process.

We have often heard of clients telling us that the reason why they have not been issued with Cyprus title deeds is that the developer mortgaged the land on which the properties have been built. Our answer is that you have not done your homework prior to signing the contract and purchasing the property and thus the reason. Get your solicitor to do a search before signing. If there is a mortgage then obtain a waiver by the mortgagee in terms whereof the mortgagee agrees to release the property once the title deeds are issued. Again we recommend that your solicitor attends to this for you and advises you accordingly.

If you cannot achieve any of the above we suggest that you "walk away".

Our advice to all concerned in Cyprus is that title deeds in my hands serves as security for myself and my family if I wish to acquire rights in real estate, not to mention the certainty it provides for the investment of large amounts of money in big developments which in turn stimulates and encourages even more investment in other sectors of our economy.

Finally may we also mention that if you purchase property as stated above that you register your contract of sale with the Land Registry as this too affords you additional protection in terms of Cyprus law.

On the other hand and as we stated of the outset there are thousands upon thousands of properties which have Cyprus title deeds and if you elect to purchase one of these properties you could finalise the sale and have the deeds registered in your name in no time. In fact if you walk into the Land Registry office with your paperwork in order, the property will be transferred into your name on the same day and you can collect the Cyprus property title deeds in a matter of days. We had an instance where the actual deeds were available in four days.