Cyprus: New law allows buyers to pay for their house twice

The government of Cyprus has passed a new law that aims to help property “owners” who are unable to obtain their title due to the fact it was secretly mortgaged by the developer who “sold” the property.

Under the new rules, property “owners” will now be able to obtain their title if they agree to repay the developers’ debts as well as keeping up payments on their own mortgage.

The law is part of a series of bills that aim to address problems in the country’s real estate market which have left thousands of buyers without title deeds and many more in negative equity.

Comment

Earlier this month, we argued Cyprus was the worst overseas property market in Europe. The new law does little to address the underlying problems and risks adding fuel to fire of an already inflammatory situation.

If it wasn’t such a serious issue, it would be tempting to enter the changes into some kind of real estate legislation comedy awards.

Source: Global edge

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