March 2010 April 2010 May 2010 June 2010 July 2010
August 2010
September 2010 October 2010
November 2010
December 2010 January 2011 February 2011 March 2011 April 2011 May 2011 June 2011 July 2011 August 2011 September 2011 October 2011 November 2011 December 2011 January 2012 February 2012 March 2012 April 2012 May 2012 June 2012 July 2012 August 2012 September 2012 October 2012 November 2012 December 2012 January 2013 February 2013 March 2013 April 2013 May 2013 June 2013 July 2013 August 2013 September 2013 October 2013 November 2013 December 2013 January 2014 February 2014 March 2014 April 2014 May 2014 June 2014 July 2014 August 2014 September 2014 October 2014 November 2014 December 2014 January 2015 February 2015 March 2015 April 2015 May 2015 June 2015 July 2015 August 2015 September 2015 October 2015 November 2015 December 2015 January 2016 February 2016 March 2016 April 2016 May 2016 June 2016 July 2016 August 2016 September 2016 October 2016 November 2016 December 2016 January 2017 February 2017 March 2017 April 2017 May 2017 June 2017 July 2017 August 2017 September 2017 October 2017 November 2017 December 2017 January 2018 February 2018 March 2018 April 2018 May 2018 June 2018 July 2018 August 2018 September 2018 October 2018 November 2018 December 2018 January 2019 February 2019 March 2019 April 2019 May 2019 June 2019 July 2019 August 2019 September 2019 October 2019 November 2019 December 2019 January 2020 February 2020 March 2020 April 2020 May 2020 June 2020 July 2020 August 2020 September 2020 October 2020 November 2020 December 2020 January 2021 February 2021 March 2021 April 2021 May 2021 June 2021 July 2021 August 2021 September 2021 October 2021 November 2021 December 2021 January 2022 February 2022 March 2022 April 2022 May 2022 June 2022 July 2022 August 2022 September 2022 October 2022 November 2022 December 2022 January 2023 February 2023 March 2023 April 2023 May 2023 June 2023 July 2023 August 2023 September 2023 October 2023 November 2023 December 2023 January 2024 February 2024 March 2024 April 2024 May 2024 June 2024 July 2024 August 2024 September 2024 October 2024
1 2 3 4 5 6 7 8 9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
News Every Day |

New procedures for protection of property buyers

By Marios Konstantinou

For decades, buyers without title deeds have beset the Cyprus property market. Thus, the House of Representatives intervened with legislation to protect the buyer of land and other real estate. The new procedure was established in 2011, 2015, and 2023 legislation. Nevertheless, a recent court ruling on the constitutionality of some of those provisions has complicated matters.

Trapped buyers

Title deeds are legal documents recording land ownership. They show the property owner and contain important information such as mortgages, court decisions, long-term leases (over 15 years) and other charges.

In Cyprus, it was possible to buy real estate without title deeds. This typically happened when the seller had mortgaged the property and could not transfer the title. Even if the buyer paid the price, there was no guarantee that the seller would use the money to repay the mortgage. Buyers were left exposed, with the term “trapped” or “enclaved” buyers used to describe their predicament. In essence, they did not have proper title to their property.

The situation was far from satisfactory. The House of Representatives intervened with three pieces of legislation: first, the Sale of Immovable Property (Specific Performance) Law 81 (I)/ 2011; second, Law 139 (I)/ 2015 amending the Transfer and Mortgage of Immovable Property Law 9/ 1965, and, third, Law 132 (I)/ 2023, amending the 2011 Law. We will call these the 2011, 2015, and 2023 Laws and explain how they work.

The specific performance procedure: 2011 and 2015

Under the 2011 law, buyers could protect themselves if they bought without title deeds by repaying the mortgage and then asking the court for an order of specific performance against the seller. This order made the seller comply with their obligations. The Department of Lands and Surveys (DLS) could delete or lift the mortgage. To succeed, however, the buyer had to deposit the contract of sale to the DLS within six months. The legislation on mortgages was amended accordingly by the 2015 Law.

The new procedure

At the end of 2023, the House of Representatives legislated again on the issue of trapped buyers, amending the 2011 law. The 2023 law changed the operation of the 2011 law and the 2015 aw on mortgages.

The new procedure according to the new Cyprus property law is as follows: When selling real property, the seller must include a search certificate from the DLS showing any burdens on the title as part of the contract. The search certificate must not be five days older than the contract date.

Type A procedure: Type A is a document in the 2023 law where the lender (bank) confirms that if the buyer repays 95 per cent of the mortgage, they will issue a payment confirmation and delete the mortgage. Any deposit from the buyer goes to the mortgage repayment, and the lender has to accept it.

Type A and Type B procedure: The Type B document in the 2023 law confirms from the lender (receipt) that the buyer has repaid 95 per cent of the mortgage. Under the Type A and Type B procedures, the lender deletes the mortgage, and the DLS transfers the property to the buyer. If the lender does not delete the mortgage, the buyer will deposit the Type B document signed and sealed by the lender, and the DLS director will transfer the property to the buyer.

Type C procedure: The 2023 law contains a Type C document that allows the buyer to declare that they will deposit the contract of sale without a Type A declaration.

The new procedure applies to contracts signed on and after December 12, 2023. The 2011 law still covers earlier contracts.

Constitutional matters

The 2015 law gives effect to the 2011 legislation and applies to contracts deposited up to December 31, 2024. As we said earlier, under the 2015 and 2011 laws, the director of the DLS can delete a mortgage on a property. The buyer must pay the price in full and apply to the DLS. Using form type IE, the director informs the parties that they intend to transfer the property to the buyer. The relevant provisions are 44 IΘ to 44 KB of the 2015 law.

Nevertheless, these provisions have recently been held unconstitutional. In Civil Appeal 285/ 2018, on June 20, 2024, the Court of Appeal held that the power of the DLS director to delete a mortgage effectively destroys the lender’s (bank’s) right to property. The right to property is protected by Article 23 of the Constitution. Moreover, deleting or lifting a mortgage is against the right to freedom of contract, protected by the Constitution under Article 26.

This decision is not good news for trapped buyers. The Land Registry has since frozen the examination of applications from trapped buyers. Following the Court of Appeal’s decision, the processing of applications is under a moratorium and cannot continue.

The government is trying to find a solution, possibly with new legislation. The best way for buyers to protect themselves now is to ensure that the five-day search certificate is included in the contract of sale and never buy without first getting legal advice.

Summing up, legislation tried to resolve the situation with trapped buyers, creating a procedure allowing the DLS to delete a mortgage and transfer property to the repaying buyer. This power of the DLS was declared unconstitutional. Thus, the government is re-examining the matter. Buyers must not buy without title deeds (resale properties that do not have yet a title deed) or at least without getting legal advice from a Cyprus property lawyer.

Marios Konstantinou is a partner at George K Konstantinou law firm in Limassol

Минск

Путин: РФ и Белоруссия могут дополнять друг друга в промышленных проектах

The Western auto industry is now locked in a 'Darwinian' make-or-break battle with China, the chiefs of 2 major automakers warn

Cyprus Business Now: high rents, financial support to wine industry, PwC’s Academy Business Professionals Certificate

America’s Greatest Tradition

Single family residence sells for $2.4 million in San Jose

Ria.city






Read also

Passenger jet captain suddenly dies mid-flight forcing plane to make emergency landing while flying from US to Turkey

“Fox and Friends” Hosts Flip Over New York Times Article On Trump’s Decline

Daniel Dubois vs Anthony Joshua rematch set to be pushed back as IBF order heavyweight eliminator

News, articles, comments, with a minute-by-minute update, now on Today24.pro

News Every Day

Single family residence sells for $2.4 million in San Jose

Today24.pro — latest news 24/7. You can add your news instantly now — here


News Every Day

Single family residence sells for $2.4 million in San Jose



Sports today


Новости тенниса
WTA

Рыбакина узнала место в рейтинге WTA после разгрома в финале топового турнира



Спорт в России и мире
Москва

КХЛ. ЦСКА — «Салават Юлаев». Прямая трансляция: смотреть онлайн



All sports news today





Sports in Russia today

Москва

Смородская о сборной России: «Тренировки или матч против какой-то там неофициальной сборной Пакистана – все это не вдохновляет. Лучше с нашими клубами сыграть»


Новости России

Game News

A Quake 2 Remaster dev has rebuilt the game's unique PlayStation port from scratch and released it as a free add-on


Russian.city


Москва

Релиз трека. Релиз новой песни. Релиз сингла. Релиз Музыкального альбома.


Губернаторы России
Сергей Собянин

Собянин: Соцкоординаторы оказали пациентам больниц и их близким 250 тыс. услуг


Владислав Овчинский: В Хамовниках построили школу-лабораторию «Новый взгляд»

За прошедшую неделю подмосковные росгвардейцы выезжали более 2100 раз по сигналам «Тревога» с охраняемых объектов

Похищенного кенгуренка вернули в родной зоопарк

Релиз трека. Релиз новой песни. Релиз сингла. Релиз Музыкального альбома.


Джиган подарил Оксане Самойловой козу

«Мама к этому философски отнесется»: родные Глеба Самойлова готовы к худшему

Раскрутка Сайта. Раскрутка сайта Москва. SEO раскрутка сайта. Заказать раскрутку сайта. Раскрутка сайта ru.

«Человек поет такие песни! Вы бы никогда не подумали, что он такой козёл!» Певица Бьянка рассказала о домогательствах известного певца в студии «Шоу Воли» на ТНТ


Кудерметова проиграла в финале парного турнира в Пекине

Даниил Медведев выходит в 4-й раунд ATP Шанхая после победы над Арнальди

Кудерметова и Хаочин проиграли в матче за титул в парном разряде WTA 1000 в Пекине

Соболенко вышла в ⅛ финала турнира WTA-1000 в Ухане



Подмосковные росгвардейцы задержали подозреваемого в краже партии товаров из гипермаркета

Выиграй поездку на Like Party «ДЕВИЧНИК»

XI Всероссийский конкурс «Лучшая инклюзивная школа России-2024»

"Фортуна" на льду: как многодетная мама развивает уникальную хоккейную команду для слабовидящих детей


КОМПАНИЯ «СИМПРЕАЛ» СТАЛА ГЕРОЕМ ПРОГРАММЫ «БИЗНЕС В ДЕТАЛЯХ» НА РБК

Паркинг в аэропорту «Внуково»

Лукашенко заявил, что коррекция ядерной доктрины РФ усилит Москву и Минск

Павел Дуров заявил, что его девушка Юлия Вавилова, прилетевшая с ним в Париж, была беременна и потеряла ребенка из-за стресса


Стартовало народное голосование премии «Бизнес-событие» сентября

Региональный этап фестиваля по борьбе среди школьников пройдет в Подмосковье 20 октября

Суд арестовал водителя грузовика за массовое ДТП с тремя погибшими в Серпухове

Румыния закрывает генконсульство в Ростове-на-Дону



Путин в России и мире






Персональные новости Russian.city
ГУАП

В Инженерной школе ГУАП реализуется проект по реверсивному инжинирингу для авиации



News Every Day

Single family residence sells for $2.4 million in San Jose




Friends of Today24

Музыкальные новости

Персональные новости