The Sale of Land (Specific Performance) Law No. 81(I)/2011 regulates the specific performance of Sale Contracts and provides safeguards for those buying property in Cyprus.

This legislation protects buyers of real estate in Cyprus with a number of provisions aimed at assisting them to secure full and proper registration of the property in their name.

Under Law 81(I)/2011, a buyer of land can only safeguard and enjoy the benefits of the new Legislation by depositing the contract of sale with the Land Registry within six months from the date of execution of the sale and purchase contract.

Although the time limit of six months is set for depositing the contract of sale, one of the safeguards provides for the buyer, who can apply to the Court for the issuance of an order allowing its late deposit.

Depositing the contract of sale with the Land Registry creates a charge on the property providing the buyer with substantial security. In effect, the deposit of the contract of sale for the immovable property acts as an encumbrance on that property from the date of its deposit.

Additional protection is afforded to buyers who can now submit an application to the Land Registry requesting for the transfer of property into their name in accordance with the new provisions of the Transfer and Mortgage of Properties Law No. 9/1965.

In effect, the new legislation introduces provisions for the transfer of property to property buyers who despite having fulfilled their contractual obligations under the contract of sale with the seller, the seller is unable or fails or neglects to transfer the property in their name because the property, or part of it, is subject to an encumbrance and/or mortgage and/or prohibition in favour of a bank or other lender.

We are happy to provide further information with regards to the matters described above and the procedure to be followed.

For any real estate enquiries please contact Constantinos Messios.

May 2016

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.