- Cyprus Property News Magazine - http://www.news.cyprus-property-buyers.com -

Trapped buyers (update 2)

trapped buyersTHE DECISIONS of the Paphos and Limassol District Courts regarding the trapped buyer’s law have created confusion and anger amongst property buyers in Cyprus.

It needs to be remembered that the Transfer and Mortgage Law 9/65 was amended in 2015 by introducing Articles 44IH-44KZ and the main purpose was to protect trapped buyers.

The amended law and subsequent transfer of title deeds using this law were challenged by the banks and the courts were of the opinion that the decision of the Director of the Land Registry to transfer the property into the names of the buyers violated Articles 23 and 26 of the Constitution, as these decisions were taken without the consent of the bank.

Two weeks after the issuance of the decisions, it seems that the Cyprus Land Registry has been instructed not to proceed with transferring any title deeds under the trapped buyer’s law. It seems that the Cyprus land registry will still work on applications which have already been submitted and they will accept the submission of new applications, but they will not proceed with any transfer of title deeds until the situation has been clarified.

It remains to be seen whether the Land Registry, developer or the buyers will appeal the District Court decisions to the Supreme Court of Cyprus. An appeal against a court judgement must be filed within 42 days from the issuance of the judgement, if there is still time.

Marina Massoura
Lawyer
L.G. Zambartas LLC

Update 1 – 16 June

In a statement issued earlier today the Interior Minister Constantinos Petrides said:

“An intensive consultation is taking place between the interior ministry and the attorney-general so that a lawful arrangement can be found that would free the trapped buyers of mortgaged real estate. I think we’ll have something more substantive to say in a few days.”

The outcome of these consultations will finally resolve the situation for the many thousands who were duped into buying property in Cyprus that was built on land that its developer had earlier mortgaged to the bank.

Update 2 – 19 June

The Law Office of the Republic of Cyprus has decided to appeal the recent District Court decisions regarding the trapped purchasers’ law.

It is understood that the purchasers are also appealing these decisions.

Further, it has been decided that law will continue to be applied until the Supreme Court issues a decision. This means that the Land Registry will continue examining applications under the trapped purchaser’s law and continue transferring title deeds.

In addition to the above, the Members of the Parliament are proceeding with amending the law so that all parties (bank, developer and purchasers) are legally protected.

Marina Massoura
Lawyer
L.G. Zambartas LLC