In the end of June 2025, Cyprus' House of Representatives approved crucial amendments to the Immovable Property (Transfer and Mortgage) Law. This change aims to resolve the long-lasting issues related for the trapped purchasers, counting approximately 9,500 affected individuals. These are individuals who have fully paid for their properties but still lack title deeds due to developers' debts and legal complexities.
Under the Law, once the purchaser has paid fully the purchase price, the sale agreement can be lodged with the Land Registry, even if there are outstanding encumbrances-provided written consent is obtained from the mortgagee or other encumbrance holders. Then, the Director of the Department of Land Registry will lift the encumbrances so the property can be transferred to the purchaser.
In addition, if a mortgagee or encumbrance holder unreasonably withholds consent, the purchaser may seek a court order deeming such refusal “unreasonable”, thereby allowing the transfer of the title deed into the name of the purchaser to proceed.
In cases where a separate title for the property has not been issued, the law specifies a time limit of eight months for the submission of the relevant documents. Once submitted, authorities have two years to issue the title deed, finalizing the transfer to the rightful owner.
Also, as per Law 132(I)/2023, effective from December 12, 2023, the Law requires additional documents for submission to the Department of Land Registry when purchasing a property bearing encumbrances:
- Form A: A joint declaration from the vendor and mortgagee that the property will be released once 95% of the purchase price is paid.
- Form B: Issued by the mortgagee upon full payment, permitting the District Land Office to transfer the title deed in case of failure of the Mortgagee to discharge the mortgage.
- Form C: A purchaser's acknowledgment of existing mortgages, allowing the purchaser to proceed to the lodging of the contract without completion of Form A and Form B.
Furthermore, the legislation introduces administrative fines—for example, up to €100,000 against mortgagees who don't comply—while requiring a recent (not older than five working days from the signing of the agreement) search certificate as part of the sale agreement.
These amendments mark a major step forward in Cyprus' real estate legislation. By protecting purchasers' rights, ensuring timely issuance of the title deed, and holding mortgagees accountable, the government aims to rebuild trust and momentum in the property market.
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