A summary of the recent legal decision that affects thousands of property owners in Cyprus
The Trapped Buyers application is a legal procedure that allows property buyers in Cyprus who have paid for their properties in full but have not received their title deeds to apply for the transfer of ownership to their name. The application was introduced in 2015 as a temporary measure to resolve the problem of thousands of buyers who were unable to obtain their title deeds due to various reasons, such as the developers' debts, mortgages, or planning violations. The application was supposed to expire in 2016, but it was extended several times.
Why was the application canceled by the court?
The application was challenged by several banks and developers who claimed that it violated their constitutional rights and interests. The Supreme Court of Cyprus issued a final ruling on July 22, 2024, that declared the application unconstitutional and invalid. The court found that the application infringed on the rights of the creditors and the developers, who were not given a fair hearing or a chance to object to the transfer of ownership. The court also found that the application violated the principle of legal certainty, as it retroactively affected contracts and transactions that were concluded before the application was enacted.
What are the implications of the court's decision?
The court's decision means that the Trapped Buyers application is no longer valid and cannot be used by any property buyers who have not received their title deeds. The decision also means that any transfers of ownership that were made under the application are null and void, and the original owners (the developers or the banks) retain their rights over the properties. The decision leaves thousands of property buyers in a legal limbo, as they have paid for their properties but have no legal ownership or protection. The decision also creates uncertainty and confusion in the property market, as it affects the value and the status of many properties that were sold under the application.
What are the possible solutions for the trapped buyers?
The government of Cyprus has expressed its disappointment and concern over the court's decision, and has pledged to find a new legal framework to address the issue of the trapped buyers. The government has also urged the banks and the developers to cooperate and to show goodwill and flexibility in finding a mutually acceptable solution for the trapped buyers. The trapped buyers are advised to seek legal advice and to explore their options, such as applying for a court order to obtain their title deeds, negotiating with the creditors and the developers, or joining a class action lawsuit against the responsible parties.
Alternative Options to Claim Your Title Deeds
The following are some of the possible ways to claim your title deeds in Cyprus, other than the trapped buyers procedure. However, these options may not apply to every situation, and they may have their own risks and costs. Therefore, property owners should carefully evaluate their options and seek professional guidance before proceeding.
- Buying out the developer's debt. One option is to negotiate with the developer and the bank or creditor, and agree to pay off the developer's debt in exchange for the title deeds. This option may be suitable for property owners who have enough funds to cover the debt, and who want to avoid the hassle and uncertainty of the trapped buyers procedure. However, this option may also entail some disadvantages, such as paying more than the actual value of the property, or being liable for any hidden charges or taxes that the developer may have incurred.
- Applying for a court order. Another option is to apply to the court and request an order to compel the developer and the bank or creditor to transfer the title deeds to the property owner. This option may be suitable for property owners who have a strong legal case, and who can prove that they have fulfilled their contractual obligations and that the developer has breached the contract.
- Seeking a settlement agreement. A third option is to seek a settlement agreement with the developer and the bank or creditor, and agree on a mutually acceptable solution to resolve the title deeds issue. This option may be suitable for property owners who want to avoid litigation and find a compromise that benefits all parties. However, this option may also require some concessions, such as paying a reduced transfer fee, accepting a partial or conditional title deed, or waiving some rights or claims against the developer or the bank or creditor.
Conclusion
In conclusion, property owners in Cyprus who want to claim their title deeds may have some alternative options besides the trapped buyers' procedure. However, these options may not be available or feasible for every case, and they may have their own advantages and disadvantages. Therefore, property owners should always consult a qualified lawyer before taking any action regarding their title deeds, and weigh the pros and cons of each option carefully.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.