Cyprus Bailout | Troika Demands Issue of Title Deeds

Cyprus Bailout | Troika Demands Issue of Title DeedsCyprus Bailout – Troika Demands Issue of Title Deeds

The Troika Memorandum of Understanding (MoU) for the south Cyprus bailout, between the troika and the south, includes the expectation that the backlog of Title Deeds waiting to be issued for more than one year will be reduced to less than 2,000 by the end of 2014. This is down from the current 130,000 awaiting issue.

The only problem with the south reaching this target is that the process of issuing deeds in many, if not most, of the cases will halt when the purchaser discovers they have a mortgage on their fully paid for properties. These mortgages were often placed on the properties hours before the purchasers signed the contract and this was missed by their lawyer.

When the developers went bust or stopped paying the mortgage, the banks pursued the purchasers, seeing them as soft targets. There are even cases where purchasers have paid outstanding debts only to discover that the bank then issued another mortgage to the developer.

There is no doubt in my mind that Troika’s MoU will not be adhered to, the interesting thing is what they will do about it. Withhold the next tranche of south Cyprus bailout money perhaps? More likely they’ll just extend the deadline and the south’s property purchasers’ plight will be a lesson for others to not follow their example.

[Source: Cyprus Property News]

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