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15th February 2025
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HomeNews MenuLatest News & UpdatesTrapped buyers property foreclosures paused

Trapped buyers property foreclosures paused

On Friday, the Cyprus parliament received assurances from KEDIPES and the Association of Credit Acquisition Companies and Credit Facility Management Companies (SEDP) that foreclosures on properties bought by trapped buyers will be paused for the next two to three months. The Association of Banks is also expected to confirm this decision.

Last Wednesday, the Parliamentary Legal Committee requested this freeze while discussing a bill aimed at solving issues affecting thousands of trapped property buyers. These issues arose after the Supreme Court ruled parts of the 2015 property transfer and mortgage law, Law N. 139(I)/2015, unconstitutional.

The committee asked banks and credit companies to continue the freeze until the new law is passed. KEDIPES and SEDP responded by confirming no repossessions would take place for buyers who had applied to the Land Registry by March or April. However, notifications to trapped buyers will continue, encouraging them to submit any necessary documents proving their legal rights to the properties.

The government, with input from legal experts and other stakeholders, aims to finalise and approve a law to resolve the issuing of separate property titles for trapped buyers. A working group has been preparing the bill, which is expected to be completed soon and sent to Parliament for a vote.

Changes to the trapped buyers law

The bill includes six key changes to existing laws. Its main goal is to allow the Land Registry to cancel prior encumbrances (e.g., mortgages) and transfer property ownership to buyers.

Other amendments include stricter deadlines for submitting and reviewing applications, the requirement for consent from holders of prior charges, and defining a two-year timeline for issuing Title Deeds.

Approximately 4,000 cases will be addressed, benefiting nearly 2,000 trapped buyers. However, banks and companies seek clearer rules on defining when a title cannot be issued. Disputes remain over timelines and which authority will decide the feasibility of issuing titles.

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1 COMMENT

  1. It would be a an achievement if they managed to resolve this issue, there is not enough peer pressure and most owners are abroad, left stranded due to weak laws and poor advice.

    Where is the responsibility to those who advised these buyers to buy encumbered properties. These same “professionals” are still advising people to buy. There has been no disciplinary actions taken on those who advised thousands of buyers to buy property which have been encumbered by developers mortgages.

    Where were the banks when they were permitting developers not to deposit the proceeds of a sale of a unit on a specific project in the mortgage account of the land that that the specific unit was sold, and they were giving further mortgage / loans to developers to buy more land and invest further. Why do the banks now, hold hostages the buyers of these units?

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