Trapped Property Buyers in Cyprus: Legal Update and Remedies

Table of Contents

1.      Introduction

2.      Legal Background

3.      Key Provisions

4.      Recommended Actions for Buyers

5.      Conclusion

Introduction

In Cyprus, numerous purchasers of immovable property have historically faced a recurring legal problem: they have paid the full or substantial part of the purchase price, yet have not obtained Title Deeds. These purchasers are commonly referred to as “trapped buyers.” This situation usually arises due to pre-existing encumbrances, unresolved debts of the vendor, or non-compliance with statutory planning requirements.

Legal Background

Previous statutory provisions intended to protect purchasers, specifically Articles 44IΘ–44KZ of the Transfer and Mortgage of Immovable Property Law of 1965 (Law No. 9/1965) - were declared unconstitutional by the Supreme Court. As a result, thousands of buyers were left without a viable legal route to secure ownership, leaving property transactions in legal limbo.

On 25 June 2025, the House of Representatives enacted Law 110(I)/2025, amending the Law. This updated legislation introduces a structured mechanism for issuing Title Deeds to eligible trapped buyers, effectively resolving a long-standing legal impasse in the Cyprus property sector.

Key Provisions

Eligibility

A buyer may qualify if:

·         The contract of sale was lodged with the Land Registry prior to 31 December 2014, or

·         The contract was concluded before 31 December 2024 and lodged pursuant to a court order under the Specific Performance Law.

Issuance of Title Deeds

·         Pending applications affected by technical or planning issues can be re-examined by the Director of the Land Registry.

·         Once all required documentation (such as building permits) is provided, the Title Deed must be issued within 2 years and 8 months.

Encumbrances

·         If the property is subject to a pre-existing mortgage or prohibition, the buyer may:• Obtain written consent from the mortgage holder, or• Apply for a court order declaring that refusal of consent is unreasonable, provided the purchase price has been paid in full.

Extended Payment Period

·         The permitted timeframe for settling any outstanding purchase balance has been extended from 30 to 60 days following official notification.

Suspension of Enforcement Actions

·         While the trapped buyer’s application is under review, foreclosure or auction proceedings against the property are suspended.

Recommended Actions for Buyers

To ensure compliance with Law 110(I)/2025, trapped buyers are advised to:

·         Review eligibility based on the amended legislation.

·         Gather all required technical documentation (building permits, certificates, and plans).

·         Engage legal and, if necessary, technical advisors to expedite the Title Deed issuance process.

·         Address encumbrances through negotiation or court action if consent is unreasonably withheld.

Conclusion - Trapped Property Buyers in Cyprus

Law 110(I)/2025 provides a legally enforceable mechanism for purchasers who have previously been unable to obtain Title Deeds, improving legal certainty and strengthening confidence in the Cyprus property market.

At George Liasides LLC, our legal experts assist clients throughout the entire process - from reviewing eligibility and preparing applications to resolving legal obstacles and finalizing Title Deed transfer. Our goal is to ensure that property buyers secure full ownership in Cyprus without future legal complications.