Cyprus moves to increase transparency for home buyers

The Cypriot government has passed a new bill ensuring property buyers on the island will receive title deeds to their properties, regardless of whether the seller owes money on the home.

The lack of access of some international property buyers to the title deeds of their homes has caused much of the trouble currently occurring on the Cypriot real estate market with unscrupulous developers, who remortgage or default on properties that they then sell on to unwitting investors.

Instances of buyers who assumed they were the rightful owners of the properties, and who have paid a full deposit but not received a title deed, being forcibly evicted from their homes by police or the banks have been rife in the UK media particularly.

Chairman of the Cypriot parliament's House Legal Affairs Committee, Ionas Nicolau, said the new law would allow buyers more rights in situations where they might face eviction due to a fraudulent investment. "The new law will allow the buyer to have title deeds, independent of whether the seller owes money on that property", Nicolau said. "It is important as it will help reactivate the property market in Cyprus."

Although sales of property in Cyprus increased 5% over 2010, transactions have so far fallen 16% in the first quarter of 2011. Authorities hope the increased transparency, hopefully the first step in a concerted effort towards reforming the market, will result in a boost back to 2010 levels.