Cyprus Reform Unlocks Trapped Purchasers' Applications

In a landmark move to address one of Cyprus’s most persistent property challenges, the House of Representatives has unanimously passed an amendment Law that effectively resolves thousands of trapped purchasers’ cases. These long-standing cases have prevented thousands of purchasers from obtaining their title deeds and official recognition as the legal owners of their properties.

Who are the "Trapped Purchasers"?

“Trapped Purchasers” are individuals or entities who purchased property in Cyprus by often paying in full for their property but have never received their title deeds due to existing mortgages, developer debts, building permit issues or any other legal encumbrance or prohibitions.

Legislative Background and Need for Reform- Amendment Law No.110(I)/2025 of ‘The Transfer and Mortgage of Immovable Property Laws of 1965’

The Ministry of the Interior, in collaboration with the Parliamentary Committee on Legal Affairs, Justice, and Public Order, formed an ad hoc working group to draft legislation aligned with the Constitution and judicial decisions.

This legislative reform was both urgent and necessary, following a landmark Supreme Court ruling in Civil Appeal No. 285/2018, issued on 20 June 2024. In that decision, the Court found that Articles 44IΘ to 44KB of 2015 legislation were unconstitutional, as they violated Articles 23 and 26 of the Constitution, which protect property rights and freedom of contract. As a result, thousands of trapped purchasers’ applications became legally unprocessable, leaving thousands of purchasers in a state of legal limbo.

The new law introduces a new, constitutionally sound framework and key amendments to protect the trapped purchasers. Specifically, the recently enacted law sets conditions for applying the provisions of Articles 44IH and 44IΘ to Article 44KZ, which regulate the transfer of property into the purchaser's name. It aims to restore legal clarity and provide a structured, constitutionally compliant mechanism to address the long-standing challenges faced by purchasers who, despite having fulfilled their contractual obligations, were denied legal ownership of their properties.

Key Amendments:

Contract Timing Requirements:

The purchase/sale contract of the Property must have either:

• Been concluded and lodged at the District Land Registry Office in accordance with the provisions of the Sale of Immovable Property (Specific Performance) Act, by 31 December 2014; or
• Been concluded by 31 December 2024 and subsequently lodged at the competent District Land Registry through a court order, in accordance with the provisions of the Sale of Immovable Property (Specific Performance) Act, based on an application filed with the competent District Court no later than 31 December 2024.

Title Deed Issuance:

For the application of trapped purchaser, a separate title deed must have been issued for the property.

For existing applications of trapped purchasers submitted before the entry into force of the Amended Law N. 110(I)/2025, and no separate title deed has been issued yet for the property due to issues with building or planning permits, the new law offers that the Director of Land Registry shall proceed with the examination of applications, provided that issuing a title deed for the property is feasible. The title deed must be issued within two (2) years and eight (8) months from the date of the amending Law and following relevant notification from the Director to the applicant. If the documents are not provided within the specified timeframe, the Director has the authority to reject the application. Thus, the applicant now has eight (8) months from the relevant notice by the Director to submit the necessary technical certificates (e.g., planning permit, building permit, etc.).

Encumbrance Issues on the Property:

If the property has legal encumbrances (like mortgages) or prohibitions (like Memo) registered before the contract was deposited (precede the lodgement) to the Land Registry, purchasers must either:

• Provide written consent from the holder(s) of those encumbrances (creditors or entity holdings) for their release, cancellation or removal. Once the written consent is obtained, the Director is authorized to cancel the encumbrance, allowing the property to be transferred to the Purchaser even if there are subsequent encumbrances; or
• The purchaser has the right to apply to the Court and obtain a court order confirming the involved parties (creditor or encumbrance holder) are unreasonably and unjustifiably refusing to provide the required written consent for the release, removal, or cancellation of the encumbrance as stated above, and that the refusal is abusive or unjustified and simultaneously ordering the removal of the said encumbrance, provided that the purchase price has been paid in full. The submission of the application to the District Court must be made within forty-five (45) days from the date of such refusal took place.

Extended Payment Deadlines:

In cases where the sale/purchase price for the property has not been paid in full, the Director shall serve a written notice to the purchaser, requesting that the outstanding balance be paid within sixty (60) days (previously was thirty (30) days) into the Land Registry temporary account (escrow account).

Conclusion

In conclusion, the recently amended Law marks a pivotal moment in Cyprus’s ongoing efforts to address one of its most complex property challenges. Designed to withstand constitutional scrutiny, the new law introduces a clear and structured legal framework aimed at resolving the problem of trapped purchasers.

This reform lays the groundwork for a more transparent and reliable property transfer system and constitutes a critical step toward rebuilding public confidence in Cyprus’s property market and legal framework.

At Philippou Law Firm, we specialize in assisting clients with issues related to their title deeds.

Contact us today for a free consultation and let our experienced team guide you every step of the way.