Legislative Solution for Trapped Property Buyers: What Has Changed and What You Need to Know
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.
How We Can Help You
At Frangos Law, we provide specialised legal services in the area of property law, offering assistance to buyers facing legal issues such as unissued title deeds, pre-existing encumbrances, and refusal by third parties to consent to the transfer of property. Our team possesses in-depth knowledge of the relevant legislation and extensive experience in resolving complex cases through negotiation, administrative procedures, and, where necessary, litigation. Whether you require guidance in filing an application or legal representation to secure your rights, we are here to support you with dedication and effectiveness. Contact us at info@frangoslaw.com to discuss how we can assist you.
