A staggering 100,000 properties do not have deeds despite years of legal wrangling and promises from officials that the long running saga would be sorted out.
Currently the law in Cyprus allows developers to retain title deeds even after properties are finished which they use as collateral to gain mortgages. However, should a developer go bust and have to surrender the title deed to the lender, the buyers who have paid in full risk losing their homes.
Also property owners who want to sell have little choice but to sell back to the developer who dictates the price, paying less than the going rate. Some property owners are still waiting for the deeds decades after buying.
In June last year the Cypriot government promised to introduce a new law by the end of 2008. But still nothing has been forthcoming and now the European Parliament is warning officials to get a move on.
The Foreign Office in the UK has confirmed that it has received assurances from the Cypriot Interior Ministry that a bill would be introduced soon to sort it out. This follows a meeting between officials and the British High Commissioner in Nicosia.
However those who don't have deeds to their properties are skeptical. Denis O'Hare from the Cyprus Property Action Group that was set up to campaign on behalf of property owners said he had heard nothing about the new legislation being ready.
Officially Britain warns property investors to be careful about buying in Cyprus. The Foreign Office website states that there are problems with title deeds and that independent legal advice should be sought.
The European Parliament is also investigating the situation to see if there has been any infringement of EU law and has asked the Cypriot authorities for detailed information about the legal provisions and practices relating to property transactions.
The Interior Ministry said it had nothing new to add to the assurances given by Interior Minister Nicos Sylikiotis last year. It refused to give a date when legislation might be ready.
