Cyprus Tackles ‘Trapped Buyers’ with Crucial Property Law Reform

In a decisive and historic step to resolve a major hurdle in Cyprus’ real estate sector, the House of Representatives has unanimously approved a groundbreaking amendment law aimed at freeing thousands of ‘trapped buyers’ from prolonged legal uncertainty.

Understanding the ‘Trapped Buyers’ Phenomenon

So, who exactly are these ‘trapped buyers’? They are property purchasers who, despite often paying their full purchase price, have been unable to obtain their official title deeds because of unresolved developer debts, outstanding mortgages, or complications such as withheld building permits and other legal restrictions. This issue created a significant bottleneck, leaving countless owners in limbo.

To address this, the Interior Ministry, in partnership with the House Legal Committee, formed a dedicated task force to draft a legislative solution fully compliant with Cyprus’ Constitution and recent judicial rulings.

The New Amendment Law 110(I)/2025: What Changed?

Passed on June 25, 2025, and published shortly after, the Amendment Law 110(I)/2025 revises the historic 1965 Transfer and Mortgage of Immovable Property Laws. This legislation follows an important Supreme Court decision from June 2024, which declared previous attempts to resolve trapped buyers unconstitutional for infringing on property rights and the freedom of contract.

The new law replaces the faulty framework with a constitutionally robust mechanism designed to finally enable trapped buyers to legally claim what they have paid for.

Key Provisions and Amendments

Contract Registration Deadlines

Buyers must have their contracts either:

• Concluded and lodged with the District Land Registry by December 31, 2014; or
• Concluded by December 31, 2024, and subsequently registered through a court order before December 31, 2024.

Title Deed Issuance

The law requires a separate title deed for each property. For applications pending before the new law, if title deeds have not been issued due to planning or building permits issues, the Land Registry Director is empowered to evaluate these cases and proceed when feasible. Applicants have eight months to provide necessary certificates following notification.

Resolving Legal Encumbrances

For properties burdened with mortgages or other registered encumbrances predating contract lodgement, purchasers must obtain written consent from encumbrance holders or secure a court order to release these burdens, provided the purchase price has been fully paid.

Extended Payment Periods

Where buyers have not yet settled the full price, the payment window for clearing outstanding balances into a Land Registry escrow account has been extended from 30 to 60 days.

Why This Reform Matters

This amendment represents a critical turning point in Cyprus’ property market by injecting much-needed clarity, reducing legal disputes, and restoring trust for buyers and investors alike. By addressing the issues head-on—and in compliance with constitutional mandates—Cyprus is paving the way for a more transparent and efficient property transfer system.

For buyers looking for affordable investment opportunities, exploring our Cheap Apartments for Sale in Cyprus and Auction Properties in Cyprus can be an insightful starting point in this evolving legal landscape.

At INDEX.cy, we’re committed to bringing you clear, data-driven insights on Cyprus’ property market, helping you make informed decisions amidst ongoing reforms.

Disclaimer: This article is for informational purposes only. For personalized legal assistance on title deeds and property issues, consult a qualified professional such as Polycarpos Philippou & Associates LLC.