A fresh legislative update passed unanimously by the Cyprus House of Representatives on Thursday is expected to offer long-awaited relief to nearly 9,500 property buyers who’ve been caught in legal limbo—having paid for their properties in full but left without title deeds due to outstanding developer debts.
According to a statement from the Interior Ministry, the new law is designed to restore protections for so-called “trapped buyers”—individuals who purchased real estate but were unable to legally register it under their names because of mortgages or other claims tied to the original seller. Their applications had stalled following a Supreme Court ruling in June 2024 that deemed parts of the previous legislation unconstitutional.
The revised law now provides a clear legal mechanism to override unjustified resistance from banks or other creditors who continue to block title deed transfers. If the buyer has settled the property payment in full, they may apply for a court order compelling the transfer. Once the court order is filed with the Department of Lands and Surveys, all other proceedings involving the property are put on hold until the order is resolved.
Importantly, the law allows courts to bypass lender approval when it’s deemed unreasonable. Lenders or encumbrance holders will be required to provide written consent for title deed transfers—but if they refuse without just cause, a court can intervene. Buyers then have 45 days to initiate the petition process, which aims to break the deadlock once and for all.
DISY MP Fotini Tsiridou described the law’s passage as a “landmark moment” that corrects a long-standing injustice. AKEL MP Aristos Damianou acknowledged that while the law may not be perfect, it’s a necessary step forward that will help at least 3,000 property owners immediately.
The problem dates back years and involves thousands of individuals who purchased homes or apartments from developers who had already mortgaged the land. Since the bank’s claims typically take precedence, these buyers were denied ownership rights—despite fulfilling their contractual obligations.
The new legal pathway ensures that, once encumbrance holders give consent or a court orders it, the Land Registry can clear existing encumbrances, allowing the title deed to be officially issued in the buyer’s name.
The Interior Ministry emphasized that this is a decisive move toward restoring fairness in the real estate sector—one that balances legal rights, consumer protection, and market functionality.
Source: Cyprus Mail