Cyprus unlocks thousands of blocked cases of Trapped Purchasers' applications

By Evi Cherouvim

In a landmark move to address one of Cyprus’ most persistent property challenges, the House of Representatives has unanimously passed an amendment law that effectively resolves thousands of cases of ‘trapped’ property buyers. 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 buyers’?

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

The interior ministry, in collaboration with the House legal committee, formed an ad hoc working group to draft legislation aligned with the Constitution and judicial decisions.

The recently enacted Amendment Law 110(I)/2025 of “The Transfer and Mortgage of Immovable Property Laws of 1965” was formally approved by the House of Representatives on June 25, 2025 and published on July 4. This legislative reform was both urgent and necessary, following a landmark Supreme Court ruling in Civil Appeal No. 285/2018, issued on June 20, 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 buyers’ 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 trapped buyers. 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. Ιt 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:

1.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 December 31, 2014,

or

  • Been concluded by December 31, 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 December 31, 2024.

2.Title Deed Issuance:

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

For existing applications of trapped purchasers were 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 etc, 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 years and eight 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 months from the relevant notice by the director to submit the necessary technical certificates (e.g. planning permit, building permit etc).

3.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 authorised 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 45 days from the date of such refusal took place.

4.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 60 days (previous was 30 days) into the Land Registry temporary account (escrow account).

In conclusion, the recently amended law marks a pivotal moment in Cyprus’ 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 is a critical step toward rebuilding public confidence in Cyprus’ property market and legal framework.

Evi Cherouvim, LLB, LLM in International Commercial and Business Law, is an associate at Polycarpos Philippou & Associates LLC. The firm specialises in assisting clients with issues related to their title deeds. This article provides general information only and does not constitute legal advice.