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Interior Minister Constantinos Ioannou presented solutions for resolving issues faced by "stranded buyers" to the Parliamentary Committee on Legal Affairs, addressing about half of the nearly 9,500 pending cases. The proposals aim to help property buyers who have been unable to obtain title deeds due to legal complications, often related to encumbrances on the properties.
Ioannou explained that of the 9,497 cases, 5,417 lack title deeds, and these cases will remain pending while authorities determine if title deeds can be issued. For the remaining 4,080 cases, about 2,500 are eligible for title deeds since they have no encumbrances tied to the properties after the sale. The remaining cases, which involve pre-sale encumbrances, will depend on the consent of those holding claims on the properties.
The Minister stressed that the solution is legally sound and assured that efforts would continue to resolve the issue. He also mentioned the importance of involving banks in future discussions, noting that banks have already agreed to suspend property sales of stranded buyers until January 2025.
The Legal Service proposed an alternative solution via a special enforcement procedure through the courts, which could expedite case resolutions if prioritized. However, concerns were raised about the time this process might take, with some estimating it could stretch for decades if applied to all cases. The Legal Service disagreed, saying the Supreme Court would fast-track cases under this procedure.
Lawyer Harris Paraskevas, representing the Association for the Protection of First Homes, objected to court involvement, calling for out-of-court settlements and emphasizing the role of banks in finding practical solutions. Financial Commissioner Valentina Georgiadou echoed this sentiment, stressing that dispute resolution should involve cooperation between banks and credit redemption companies.
The Trapped Buyers Initiative Group urged all parties to collaborate and show understanding, particularly praising KEDIPES, a government-backed asset management company, for freezing divestitures until a solution is found.
DISY MP Nikos Tornaritis and AKEL MP Andreas Pasiourtides emphasized the need for a solution that protects bona fide buyers. Pasiourtides noted that banks hold the key to resolving the issue, while DIKO MP Panicos Leonidou added that any solution must distinguish between those who have met their obligations and those who have not.
The Legal Committee aims to reach a comprehensive proposal by the end of the year, with hopes that the issue can be resolved before the suspension of divestments ends in January 2025.
