30 June 2025
The Department of Lands and Surveys will be sending letters to all buyers who have submitted relevant applications, providing them with clear, case specific instructions regarding the next steps for the trapped property buyers in Cyprus.
This significant development concerns individuals who have fully paid the purchase price of their property but have been unable to obtain legal ownership due to the existence of mortgages, charges or other encumbrances affecting the seller.
Buyers are encouraged to await official communication from the Department of Lands and Surveys and not to take independent action until they are formally informed of the applicable procedure and the next steps to be followed.
We are closely monitoring the situation and remain at the disposal of our clients for any assistance they may require in connection with their applications or general property matters.
If you require assistance regarding real estate matters please contact our senior associate Cathy Georgiou.
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.