ec responds to complaints about cypriot property practices
News Posted On: 13 February 2012
The Civil Justice Directorate of the European Commission has replied to those who have complained about bad practices in the Cypriot property scandal, and it is a tough one to navigate. Many of those who have sent written complaints about bad practices endured while buying property in Cyprus have received a reply from one Veronica Manfredi, job title "Head of Unit".
After the obligatory thank you for writing, apology for belated reply and of course the "we take this matter very seriously" Manfredi spends the next three paragraphs explaining which EC legislation could be brought in to rectify the situation.
"Although matters of real estate property ownership are primarily within the remit of the Member States and are regulated by their national contract laws, there may be Union legislation applicable to the practices described," she writes.
First score on the board is Directive 2005/29/EC on unfair commercial practices. Manfredi says that the so-called “UCPD” "prevents traders from engaging in misleading and aggressive commercial practices".
"Its provisions require that traders operate in accordance with professional diligence and that they do not distort the economic behaviour of consumers by inducing them to enter transactions they would not have entered otherwise," she continues.
However, she then goes on to say that not all failures to give title deeds can automatically be deemed unfair practice, and that individual cases should be assessed by "competent national authorities and courts, taking into account the applicable national laws regulating real estate property matters". So, right back to square one then?
Manfredi then goes on to explain that the best one to get em on might be "the lack of pre-contractual information to property buyers about the existence of developers’ mortgages on the Cypriot properties offered for sale". This, she says should be assessed against Article 7 of the UCPD concerning misleading omissions. But again, assessed by whom? The Cypriot authorities.
The UCPD only came into effect 12 December 2007 and so can only be brought to bear on sales carried out after it came into effect. Manfredi suggested Directive 84/450/EEC concerning misleading advertising, and Directive 93/13/EEC on unfair terms in consumer contracts for sales carried out before the UCPD came into effect.
One strong beacon of hope comes from the mention of the EU-wide enforcement network established by the Regulation on Consumer Protection Cooperation, for sales that go across borders. But again, Manfredi spoils it by telling us that all they can do is request further investigation from the Cypriots on your behalf.
However, Manfredi goes on to give it a bit more bite, she writes:
"Following previous exchanges of correspondence, the European Commission has sent a request for information to the Cypriot authorities, enquiring as to the actions carried out at national level to address the reported practices and to ensure an appropriate protection of EU consumers.
"The reply of the Cypriot authorities, received mid January, is now being thoroughly analysed. Should the information communicated be unsatisfactory, the European Commission will act to ensure its compliance and the protection of EU citizens and consumers, as appropriate."
Again the spoiler is:
"However, I would like to emphasise that the enforcement of Directive 2005/29/EC, Directive 84/450/EEC and Directive 93/13/EEC is primarily the responsibility of the competent national courts and/or public enforcement authorities. In addition, aspects related to the consequences of illegal practices, such as, for instance, compensation for breaches of national contract law concerning real estate matter and/or abuse of public powers in relation to building permits remain mainly regulated by national law and should hence be brought to the attention of the national competent courts."
Thank you, but this wasn't a point we missed!
It is good to see the EC taking such an interest, and it may lead to some firmer action if constant calls for further action go ignored, but for now it looks like more of the same dancing to me. Anyone who wants to get the ball rolling with the EU wide enforcement network in the UK should contact the OFT on:
Office of Fair Trading
Fleetbank House
2-6 Salisbury Square
London EC4Y 8JX
E-mail: enquiries@oft.gsi.gov.uk
Website: http://www.oft.gov.uk
Anyone not in the UK should go to http://ec.europa.eu/consumers/empowerment/cons_ networks_ en.htm and click the link for their country.
View Cyprus property for sale
Written by Liam Bailey
Back to news articles for this country
Latest Related News Articles in Cyprus
Real Estate Market in Cyprus Re Emerging
2012-05-17
Could the real estate market in Cyprus be re-emerging, possibly according to one company who says th.....
EC Responds to Complaints About Cypriot Property Practices
2012-02-13
The Civil Justice Directorate of the European Commission has replied to those who have complained ab.....
Foreign Purchases Hit 10yr Low in Cyprus
2012-01-06
Sales continually, dropped, flopped or stagnated in the pits throughout 2011, but now, the latest da.....
2012 a Bad Year for Cyprus Property Sales
2011-12-12
This year is shaping up to be the worst year yet in terms of foreign purchases of Cyprus property, w.....
Cyprus Tourism Industry to Receive Welcome Boost
2011-06-01
The tourism industry in Cyprus is set to receive a welcome boost with the announcement that 15 new d.....
Russian and Chinese Buyers Revitalise Demand for Cyprus Property
2011-05-17
Large numbers of Russian and Chinese buyers are providing a valuable boost to the Cyprus property ma.....
Cypriot government needs to simplify housing market
2011-03-01
Those involved in the Cypriot housing market feel that the government needs to take action to revive.....
Cyprus Property Sales Increase in 2010
2011-01-13
After almost 2 years of near-constant misery there are some glimmers of hope in the Cyprus property .....
Cyprus Property Title Deeds Legislation Could be Passed Next Month
2010-09-23
A senior member of the Cypriot government has indicated that the legislation aimed at solving the tu.....
Cyprus Property Sales Increase Continues but Slower
2010-05-26
Data from the Department of Land and Surveys has shown growth in Cyprus property sales is continuing.....