Complicated situation around obtaining real estate titles in Cyprus
The ongoing issue surrounding certificates of ownership for Cyprus real estate that have been fully paid by buyers and used as collateral by Cyprus developers is continuing.
Besides having debts in Cyprus banks, developers also owe a lot to tax authorities. So the Cyprus authorities are not eager to issue title deeds for immovables that have been used by developers to secure their loans.
The situation is quite complicated, and implies that someone has to suffer losses. Eventually the victim will be either the Cyprus bank that will have to write off overdue and defaulted loans, or Cyprus real estate buyers that have been unlucky to pay out the whole amount of their purchase, and now having really slim chances to obtain the title deed.
New laws have been implemented in Cyprus to enable the release of encumbrance in relation to fully paid real estate. However, the authorities refuse to give their final approval until the municipal debts are fully settled.
Obviously, someone has to make the first step to find the way out of this stalemate.
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