NEWS & ARTICLES

A legislative formula is on the table that will allow the transfer of title deeds to property buyers. Each case will be individually assessed, and where no evidence of fraud is found, the transfer of the title deed will proceed.

In the logic of non-exercise of rights, the legal solution being sought for the problem of trapped property owners aims to grant property titles to buyers who have not acted fraudulently and have been consistent in fulfilling their financial obligations. This is considered the simplest way to resolve the issues of unconstitutionality. 

The matter was examined anew on Thursday (yesterday) in a meeting at the Ministry of the Interior, and the solution being considered is one where the creditor will not object to the transfer of the property at the Land Registry. This logic also supports the proposed law presented in the plenary session of the Parliament by DISY MP Nikos Georgiou, which seeks to facilitate the release of encumbrances (MEMO) on property titles in cases where obligations have been met. 

The regulation being examined for trapped buyers is expected to provide solutions in around 2,000-3,000 cases where buyers have proven that they have fulfilled their obligations to acquire the property. Each case will be examined individually, and where there is no fraud, the title transfer will proceed. To prevent abuse of claims of fraud, the new legislation will define which actions by buyers or developers are considered fraudulent. 

However, the new regulation is estimated to not cover all trapped property owners. This is because there are indeed cases of abuse of the practice, which in the current phase are not included (loan concession to the developer). Moreover, in a number of cases, no transaction can be proven. These concern subcontractors (electricians, plumbers, builders, etc.) whom the developer compensated with the transfer of property.

It is worth noting that trapped property buyers are divided into two major categories: the first where no title has been issued and the second where a title exists. In the first category, urban planning amnesty will allow in many cases the issuance of titles. In the second category, the legislative initiative will provide solutions but not for all cases. 

It is reminded that a Court of Appeal ruling found unconstitutional the provisions of the 2015 law that granted trapped buyers the opportunity to acquire ownership of their property. The court’s decision in the second instance does not automatically invalidate the legislation. However, the decision creates a precedent and affects pending cases in the District Courts. It is estimated that with the provisions of the 2015 law, 10,000 transfers have been executed, and another 10,000 have been initiated. Additionally, there is a large number of buyers who, considering the solution that was given for trapped buyers, proceeded with transactions and actions to fulfill the conditions to obtain a title and are now exposed. 

Source: Politis Newspaper