A significant development has taken place in the Cypriot real estate market, as the Plenary of the House of Representatives approved amendments to the Immovable Property (Transfer and Mortgage) Laws. These amendments aim to provide a legal resolution for thousands of cases involving trapped property buyers, which had remained unresolved due to previous court decisions.
The new legislative framework seeks to address the consequences
of the June 2024 ruling, which declared specific provisions of the
2015 Law unconstitutional. The current amendment is designed to
restore legal certainty and public confidence in the property
market by introducing a clear mechanism for the transfer of title
deeds to purchasers who have fully paid the purchase price but have
yet to secure their legal property rights.
A crucial aspect of the amendment concerns cases in which
pre-existing encumbrances or restrictions burden the property. In
such cases, written consent from the person or entity holding the
encumbrance is required in order to proceed with its cancellation
and allow for the transfer of the property to the purchaser,
regardless of any subsequent encumbrances.
Additionally, the amendment provides that if the beneficiaries of such encumbrances unjustifiably and abusively refuse to provide the required consent, the purchaser has the right to apply to the Court for an order confirming such refusal as unreasonable. This process safeguards the purchaser's right to protect their interests and pursue the issuance of a title deed, even in the face of obstructive actions by third parties.
Special provisions are also made for cases where a separate title deed has not yet been issued. The law stipulates that within eight months from its enactment, the necessary certificates must be submitted by the relevant stakeholders to initiate the title issuance process. From the date of submission of the required documents, the competent authority is granted a two-year period to issue the title deed, which is a prerequisite for completing the transfer of ownership to the purchaser.
This development represents significant progress on one of the most complex and long-standing issues facing the Cypriot economy and real estate sector.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
