The recent decision of the British High Appeal Court on the Orams case, is well publicized and it will be the cause of political and legal discussions for the next few months. The importance of this case in terms of the Cyprus real estate is that:

1. The Cypriot Courts decisions are enforced in the E.U. and the European Courts and the Cypriot (Republic) courts as being the only courts in Cyprus to be recognised as such.

2. These decisions of the Cypriot Courts can be implemented in the other E.U. courts and for all those who have signed the relevant tredy.

3. Those who occupy, use, develop etc property which belongs to be registered owners prior to 1974 invasion and without their permit, are liable to pay rent for the duration of their use and demolish buildings if these were built not by the registered owners approval.

4. If they do not comply with the court decisions, they stand to lose their own property in their own country, as illegal trespassers and they may have the possibility of getting arrested either in Cyprus or in their own country etc etc (under an international arrest warrant).

It is very difficult however for us who live in the Government controlled areas to treat this decision as a cause for celebration. We do sympathise with the Orams on the one hand, but their “naïve” approach that “the owners have left” and therefore we could take it over ….. is just that naïve …..

What we are considering now is that on the one hand the Orams must demolish the house, the Turkish occupied authorities will not grand them a demolition order and they (Orams) will be in trouble again for not complying with the British court decision and all these in addition to the psychological distress that this couple has had, plus the €1.50 legal bill (x2) = €3.0 mil., plus the rental payment etc etc.

Similarly this decision must have the 14.000 British and other home buyers and investors who have bought in Greek Cypriot land, giving them sleepless nights since this is only the beginning of numerous legal battles to follow.

We, not being refugees and not having real estate which has been taken over by the occupying forces, can look at the whole situation on a more philosophical approach than those who have and look at this situation with a completely different angle. This is not something unique for Cyprus, since the same situation happened when the Iron Curtain collapsed and the original pre 1950’s owners had their property returned by the state and others who took over their property after the second world war.

A new case now is appearing which again will be very interesting to see the outcome. A hotelier at Kyrenia who “lost” his hotel, has detected 50 tourists who have stayed in his hotel and who are now liable to pay damages to him with the same outcome as the Orams – What a mess indeed. It reminds us of 2 British investors 3 years ago who came to see us asking us to carry out a feasibility study on a housing development project which would have taken place at Karpasia (occupied area). When we informed them that this is an “illegal” project, their reply was “by the time any legal action is taken against us, we will finish the project and sell it and the buyers will have the problem if any”!! So this situation in the occupied areas has attracted all sorts of naïve, crooked and not people who are lured by the low prices and the people we refer are mainly British + Israeli “investors”. The end result will be that non originally owned Greek-Cypriot properties will increase in values in the occupied areas, property in Greek-Cypriot land in the occupied areas will worth next to nothing (we will add even to have a negative value since their occupation/possession will mean damages in terms of compensation, court fees etc) and surely it will give the T/Cypriot developers/ contractors etc a very bad time, causing some of them to go bust. Of course we are not celebrating, but this is how things are and how they should be.

Of course this situation will not necessarily help the free (republic controlled) area properties since the bad publicity will confuse the international market which may not necessarily understand what is all about. A recent decision by the European court relating to refugees of the 1918 in Constantinoupolis (Istanbul), is another decision which is worth nothing. The children of the parents who left their property since 1918 (and now the parents died) sued the Turkish Government for damages or have their property returned. The 11 judges (including one Turkish judge) decided that the property should be returned to the children, plus loss of rents etc from 1918. So, by projection, this could apply to the occupied areas and by projection to the investors/buyers on Greek owned property without time limit, since the court decided that the compensation rights passes on to the descendents.

Is at the end of the day the Cyprus problem a legal one? We doubt it, but as the legal system has developed in Europe, it is a way towards a solution by exerting pressure on the wrong doers to make it right.

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