In a decisive move to restore confidence and legal clarity to the property market, the House of Representatives has unanimously approved a landmark amendment law designed to resolve thousands of long-standing cases involving ‘trapped’ property buyers. This legislation introduces a constitutionally sound mechanism for purchasers to finally obtain their title deeds, even when faced with developer debt or other legal encumbrances.
The Legal Necessity for Reform
The urgency of this reform follows a pivotal Supreme Court decision issued in June 2024, which found key articles of the previous 2015 “Trapped Buyers” legislation to be unconstitutional. That ruling, which violated fundamental protections for property rights and freedom of contract, left thousands of existing applications legally stalled.
The new act, Amendment Law 110(I)/2025, which was approved on June 25, 2025, and published shortly thereafter, addresses this vacuum by establishing a clear and structured legal framework aimed at preventing legal challenges and completing transfers.
Who Benefits Under the New Law?
The ‘trapped buyers’ are individuals or entities who fully paid for their property but were denied legal ownership due to developers’ outstanding mortgages, lack of building permits, or other prohibitive issues. The new law provides relief based on specific contract criteria:
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Contract Lodgement: The purchase agreement must have been lodged at the District Land Registry by December 31, 2014.
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Court-Ordered Lodgement: Alternatively, contracts concluded by December 31, 2024, are covered if they were subsequently lodged via a court order based on an application filed by that same date.
Key Amendments to Fast-Track Ownership
The legislation introduces several critical changes to expedite title deed issuance and overcome existing obstacles:
I. Overcoming Encumbrances (Mortgages & Memos)
If a property has a mortgage or prohibition registered before the buyer’s contract was deposited, the purchaser now has two options:
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Creditor Consent: The purchaser must secure written consent from the encumbrance holder (creditor). Once obtained, the Director of the Land Registry is legally authorized to cancel that encumbrance and transfer the property to the purchaser, even if other encumbrances exist later in time.
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Court Intervention: If the creditor is unreasonably or unjustifiably refusing consent despite the purchase price being paid in full, the buyer may apply to the District Court within 45 days of the refusal to obtain an order for the removal of the charge.
II. Title Deed Issuance Timeline
For existing applications where a separate title deed has not yet been issued (due to planning or building permit issues):
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The Director of the Land Registry will proceed with examination if the issuance of a title deed is deemed feasible.
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The applicant must submit necessary technical certificates (e.g., permits) within eight months of receiving notification from the Director.
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Failure to submit documents within a period of two years and eight months from the law’s commencement may result in the application’s rejection.
III. Extended Payment Grace Period
In cases where the full purchase price has not yet been paid, the buyer is now granted 60 days (up from the previous 30 days) to deposit the outstanding balance into the Land Registry’s escrow account following written notice.
This landmark reform, driven by the Interior Ministry and the House legal committee, is expected to significantly improve transparency and reliability in Cyprus’s property transfer system, marking a critical step toward rebuilding public confidence.
The information in this article is general and does not constitute legal advice. For specific advice on title deed issues, readers should consult a qualified legal professional.
Source: Cyprus Property News