Amendment Seeks New Level of Property Transaction Transparency

MP Kostis Efstathiou has put forward a legislative amendment aimed at enhancing clarity in property deals, shielding buyers from unanticipated legal and financial traps that can leave them stuck in difficult situations.

This proposed revision to the Sale of Property (Specific Performance) Law would obligate the Department of Lands and Surveys (Land Registry) to declare any existing encumbrances—such as mortgages or liens—before finalizing a sale. All parties would receive an official statement confirming whether any such burdens apply to the property in question.

Proposal amending the sale of property laws (Greek)

Proposal amending the sale of property laws (English)

The initiative follows a Court of Appeal ruling in February, which stated that the Land Registry currently bears no duty to inform prospective buyers about prior sale contracts. This outcome raised alarms for many would-be homeowners, particularly the thousands ensnared by encumbered titles.

Hidden Encumbrances: A Widespread Issue

Over the years, numerous property purchasers in Cyprus have fallen victim to insufficient legal advice or misplaced trust. Many encountered difficulties because their lawyers did not perform rigorous checks—or they chose not to use an independent attorney at all. As a remedy, the government introduced the so-called “Trapped Buyers Law” in 2015, aiming to hand over Title Deeds to buyers who had honored their contracts but could not secure the official documentation.

This safety net shook in June 2024 when the Appeals Court found the law unconstitutional. By that time, around 11,462 Title Deeds had been successfully issued, leaving 9,497 cases pending across different Land Registry branches.

Ongoing Efforts to Assist Stuck Buyers

The Ministry of Interior has proposed new rules intended to resolve pending issues. According to Minister Constantinos Ioannou, the updated framework could address roughly half of these cases. Under the draft regulations, a forced Title Deed transfer can take place, but only if no encumbrances existed when the sale agreement was first recorded.

However, the government still needs a game plan for the other 50% of buyers who paid in full, acted in good faith, and yet remain without formal property ownership. For those seeking less risky investment opportunities, exploring Cheap Apartments for Sale Cyprus could be a more transparent path.

Rebuilding Market Confidence

Efstathiou’s amendment aims to restore confidence in Cyprus’s real estate sector by enforcing stricter disclosure obligations on the Land Registry. Should it become law, buyers would be better protected from existing mortgages, loans, or legal disputes attached to the property.

It’s a crucial stride toward ensuring future transactions are more secure and that fewer buyers find themselves in protracted legal limbo. Interested in new builds or alternative listings? Visit our latest Famagusta properties for additional options.