For years people who bought homes in northern Cyprus have been warned that they were taking a risk, since their property might be re-claimed in future by Greek Cypriots who were forced to leave after Turkish troops invaded the island in 1974.
Now that fear has been realised. Europe's highest court – the European Court of Justice – has ruled that a British couple Linda and David Orams, must demolish the £160,000 villa they built on land at Lapithos in northern Cyprus, following a case brought by Meletis Apostolides, who claimed to be the rightful owner of the land.
The ruling is being seen as an important test case, and although it cannot be enforced in northern Cyprus, which does not recognise the ECJ's jurisdiction, Mr Apostolides now has the right to claim compensation in a British court. It opens the way for thousands of other Greek Cypriots to make claims against people who have bought property in northern Cyprus, where some 4,000 Britons are estimated to have bought homes.
And if talks between the different governments to seek a permanent reunification of Cyprus are successful, the demolition of 'illegal' homes could be one of the conditions insisted on by the Greek side.
In anticipation of the ruling, the Foreign and Commonwealth Office raised the level of its warning about buying property in northern Cyprus. The page of its website on Cyprus includes a section devoted to the issue, which states: "The ownership of many properties is disputed in northern Cyprus, with many thousands of claims to ownership of properties from people displaced during the events of 1974. Purchase of these properties could have serious financial and legal implications."
It adds: "Purchasers could face legal proceedings in the courts of the Republic of Cyprus, as well as attempts to enforce judgements from these courts elsewhere in the EU, including the UK. Property owners and potential purchasers should also consider that a future settlement of the Cyprus problem could have serious consequences for property they purchase (including the possible restitution of the property to its original owners)."
Alexander Garrett is a freelance property writer who contributes regularly to The Observer and British Airways' Business Life.