In reference to the Supreme Court’s ruling that deemed key provisions of the previous trapped buyer’s legislation unconstitutional, the Cypriot authorities have proceeded with a partial relaunch of the transfer procedure. This new approach, however, is significantly limited in scope and applies only to properties free of encumbrance, leaving many buyers still without effective legal remedies.

For years, thousands of property buyers in Cyprus found themselves unable to obtain title deeds due to existence of prior mortgages or encumbrances registered against the property by the developer or seller.

Applications submitted by trapped buyers will continue to be processed in the usual manner. However, if any mortgages or other legal burdens are discovered to predate the sale agreement, the issuance of a title deed will be suspended until these are resolved. On the other hand, if the property is confirmed to be clear of such burdens, the title deed can be granted without delay.

The revised process now enables trapped buyers to apply for title transfer only in cases where the property is unencumbered. While this is a step forward, it is far from a comprehensive solution. The majority of affected buyers remain excluded, particularly those whose developers have defaulted on loans secured against the sold property.

The restart of the trapped buyer’s procedure is a step in the right direction but leaves a significant number of affected individuals without remedy, particularly those whose properties remain burdened by encumbrances. Without comprehensive legislative reform, buyers will continue to face serious legal and financial problems. A fair and practical solution is essential to protect good faith purchasers and restore trust in the property market.

If you require assistance regarding real estate matters please contact our senior associate Cathy Georgiou.