The Government has submitted 4 white papers in order to help solve the title deed issue problem. In addition there is a private member’s bill submitted to the House by Ionas Nicolaou MP.

• A building amnesty is proposed for those buildings/individual units that have not been erected in accord to their building permit. It refers to those cases, where the approved building density has exceeded up to 30%, increased in height, increase in floor numbers, increase in building density, not keeping the maximum distances etc - The amnesty will be given to those cases that the Special Committee (to be appointed) will approve, with the main criteria being that the “illegality” does not affect the interest of near properties. This is not a straightforward procedure, but in all cases (save changes of use etc) there is a certain route laid out how one can secure a title and transfer on one’s name.

• Depending on the extent of the violation (whether it is considered as being serious or note) there will be three types of titles. The “final title” (i.e. the one with no violations), the “incomplete” title (that is the title on which the violations are minor) and the violations will be so recorded on the title and the “incomplete title” (i.e. the title will include serious violations and they will also be recorded on the deed). This third type of title will not be allowed to be sold/transfer, mortgaged etc, until and unless such violations are removed. In this way practically all will get a title of one type or another. The local authority has now the right to ask for a title to be downgraded or upgraded, if any illegalities appear (or removed) after the title issue.

• Titles with non serious violations will have to pay compensation for the violation as this is so set by the Lands Office and approved by the Committee. We must make clear here that excess building density in excess of 10%, the erection of an added floor, the intrusion of one’s building to a neighbour’s plot etc, are considered as being serious violations and as such these titles will attract the “incomplete title” (in addition the rights of third parties, local authorities etc to take action).

• Some red tape is passed to the private enterprise and some procedures are shortened, but not to the extent that we wished.

• The specific performance law is proposed to be changed, increasing the deposit time from 2 to 4 months, special provisions are introduced so that contracts can be deposited later and more protection is given to the buyer in case of mortgages etc.

• The certificate of final approval is now unrelated to the occupation of a building (subject to certain conditions) and this must relieve many buyers.

• The supervising engineer must inform the local authority if the project is being developed not in accord with the permit (during construction).

• The division permit will be issued at the same time as the building permit, saving thus around 6-8 months for the title time issue.

• The certificate of approval can be sought by any interested party, including buyers, mortgagors etc, if the developer does not submit such an application.

We have studied the proposals which are now the subject of discussion by interested groups and parties and it is expected that once the deliberations finish (expected this October/November) a final proposal will be submitted to the House by the end of the year. Although we believe that these measures will help ease the situation, they do not go far enough. It is like changing a part of an aged engine, as opposed to changing the whole engine, or even carrying out an overhaul. Of course the greater the change the more difficult is to get the proposals approved. We are stack unfortunately with a bureaucratic system, which has been embedded in the civil service, which, under the present circumstances, it is not easy to change. As time passes, we feel more and more feel that the U.K. or Greek system on titles is better. In these countries the securing of the permit is one thing and the title issue is another (as opposed to our system which implies that 100% of the building permits conditions must be adhered to before the title issue). We have stressed to the Government and others to adopt a liberal system to get the backload of titles and permits issued, so that we can proceed with a clean plate in the future. Even if the authorities turn a blind eye for certain violations, it will not be the end of the world. This is an approach adopted by other European countries and recently the Italian Prime Minister asked his compatriots to carry out any illegalities (with payment), subject to payment of heavy fines after 1.1.2010, a similar approach has been adopted by Greece and Spain is considering the same. The securing of ownership is prime and notwithstanding the financial issue, the social site effects are very serious for the well being of the property owners in Cyprus, other considerations apart.

We will keep you informed of developments as they surface – Regrettably the Government has not come up with any proposals regarding the non issue of titles, due to the financial problems of the sellers/developers. We understand that some sort of negotiations are taking place between the Ministry and the Banks, but, it is a difficult situation to address. Perhaps one solution will be for the financiers to release the mortgages, provided the sellers have other collateral to offer. For the Government to come in and pay off the mortgages (as suggested by some readers) is next to impossible, not only because it is costly and impractical, but it will set a precedent for others, who will have the right (under our constitution of equal treatment) to demand - More thought is needed we are afraid.

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