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October 23, 2007

BRITISH COUPLE WIN NORTHERN CYPRUS CASE

A British couple won the latest and final round of a court case foreseen to have dramatic consequences for the property market in northern Cyprus. David and Linda Orams of Sussex won their battle in the High Court against Meletis Apostolides, a Greek Cypriot who claims ownership of the land in the self-declared Turkish Republic of Northern Cyprus (TRNC), which his family used to own before the Turkish invasion of 1974.

Apostolides had obtained a judgement in a Nicosian court (the Greek Cypriot capital) that ordered the Orams to compensate Apostolides, to demolish their home (which cost them £160,000 including land and construction) and to hand over their land to him. When the Orams refused to abide by this judgement, Apostolides sued them in the English courts. It was a defeat for the couple (who were represented in this stage of the case by Cherie Booth QC, the wife of the prime minister) who were forced to to sell their home in Sussex to pay for Apostolides’ costs and compensation.


The presiding judge, Mr Justice Jack, found that the Nicosia court order was not enforceable in England due to the terms of Cyprus’ accession to the EU in 2004 and to the fact that Greek Cypriot law is de facto unenforceable in the Turkish-occupied north. The judge has ordered Apostolides to pay 75 per cent of the Orams’ legal costs of £863,000, with £75,000 payable within one month. However, Apostolides has been granted leave to appeal, meaning that this case could yet have a few surprises in store.

Speaking outside the High Court following the verdict, Linda Orams praised the English justice system and European legislation and said that she and her husband remained confident ahead of any possible appeal.

The result was greeted with joy by many foreign homebuyers who have defied the legal uncertainties to buy in Northern Cyprus. The Greek Cypriot government estimates that at least 10,000 foreign buyers have snapped up property in the north, much of which is significantly cheaper than its equivalent in the south.

Tom Roche, a property consultant in the Turkish-occupied area told property trade magazine The Overseas Property Professional that the verdict is a stunning victory for all those who own property in northern Cyprus and good news for those thinking of investing there. He added that it is a common-sense judgement that acknowledges the realities of Cyprus: two administrations existing and Greek Cypriot courts and government have no control over the northern island.

Regardless of this verdict and irrespective of the results of any future appeal the legal status of property in northern Cyprus remains rather murky. While many observers are now forecasting a rush among foreign buyers to take advantage of northern Cyprus’ levels of affordability, the reality is that title in the TRNC is often extremely confused and the subject of a good deal of political activity at the highest levels.

Kate Hamilton, editor of Homes Overseas, said that buyers should continue to be extremely wary about buying in the TRNC and should take as many precautions as possible before committing to any purchase.

Posted on: Cyprus

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