Government urged to act on title deeds

THE unresolved problem of title deeds is a serious issue that needs to be dealt with, the Cyprus Land and Property Owners’ Association (KSIA) said yesterday.

Speaking at their annual general meeting, KSIA president George Strovolides said there were over 100,000 people without title deeds.

“This unresolved issue is dangerous and more regulation on the market will benefit all sides,” he said.

Strovolides said he has brought the issue to the attention of the Interior Minister, who he said pledged to accelerate a solution.

KSIA has also been in contact with the Association of Property Developers and the Cyprus Bar Association about the issue.

There are more than twice as many Cypriots without title deeds as there are foreigners, and they too have become more concerned recently about how owners without title deeds could be protected if the global credit crunch hits the property sector.

On average, it takes 10-15 years for owners in Cyprus to obtain title deeds on new properties, because in many instances the developer has remortgaged to build new developments. This gives the banks legal rights to the development in the event of bankruptcy, even if people have paid in full for their homes.

During yesterday’s AGM, Strovolides also brought up the issue of property taxes.

He said he had given a list of proposals for tax reform to Finance Minister Charilaos Stavrakis.

According to KSIA data, state revenue from real estate tax was only £36 million in 1998, but was now around £500 million.

“KSIA believes this is a most unfair tax for owners and only creates an incentive for tax evasion,” he said.

He called on the government to reduce capital gains tax from 20 per cent to 10 per cent, and to abolish transfer fees.

“The aim of these suggestions is not the deprivation of revenue from the state, but to maintain growth in the property sector,” Strovolides said.

The Cyprus Mail is the only English-language daily newspaper published in Cyprus. It was established in 1945 and today, with its popular and widely-read website, the Cyprus Mail is among the most trusted news sites in Cyprus. The newspaper is not affiliated with any political parties and has always striven to maintain its independence. Over the past 70-plus years, the Cyprus Mail, with a small dedicated team, has covered momentous events in Cyprus’ modern history, chronicling the last gasps of British colonial rule, Cyprus’ truncated independence, the coup and Turkish invasion, and the decades of negotiations to stitch the divided island back together, plus a myriad of scandals, murders, and human interests stories that capture the island and its -people. Observers describe it as politically conservative.