The new formula designed to help as many Trapped Buyers as possible to get Title Deeds has been handed over to political parties and stakeholders for review. There are currently 9,497 pending cases, while 11,462 titles have already been issued.
A legal framework has been developed by the Ministry of Interior in collaboration with a special working group to help genuine Trapped Buyers obtain Title Deeds. This follows a court ruling that deemed the 2015 legislation unconstitutional.
According to reports, the new regulation discussed by the working group yesterday allows forced transfer of Title Deeds to buyers if no property encumbrances existed at the time the sales document was submitted. This measure aims to support Trapped Buyers who bought in good faith.
In cases where a Title Deed cannot be issued due to planning violations, the Land Registry has been instructed to issue the Title Deed to the original owner if the violations are covered by the latest urban planning amnesty. The goal is to resolve as many cases as possible.
Since the 2015 ruling, 9,497 Trapped Buyers applications remain unresolved. Out of 21,461 applications submitted since September 2015, 11,462 titles have been issued, 502 applications were rejected, and the remaining cases involve 4,080 titles delayed due to planning issues and 5,417 titles still under the name of the original developer.
Trapped Buyers meeting
These issues were discussed at a meeting chaired by Dr. Elikkos A. Elias, Director-General of the Ministry of Interior. Participants included MPs Aristos Damianou and Panikos Leonidou from the Legal Affairs Committee, representatives from the Land Registry, the Ministry of Finance, the Legal Service, the Cyprus Bar Association, the Bankers’ Association, and credit acquisition companies.
“We’re making good progress on amendments to the law so that the Land Registry can resume processing application from Trapped Buyers,” said Dr. Elias. The Ministry’s proposed regulation was reviewed, and participants are expected to submit comments next week. “We will finalise the draft and submit it to Parliament to start discussions and move forward with the legal changes,” he added.
Aristos Damianou, MP and head of the Parliamentary Interior Committee, noted the complexity of the legal issue. He explained that buyers acting in good faith who have fulfilled their financial obligations should be able to proceed with title issuance and transfer, provided that financial institutions agree. However, he acknowledged there are many procedural requirements.
“We are very close to finding solutions that could significantly address the Trapped Buyers problem,” said Panikos Leonidou, a member of the Legal Affairs Committee. He emphasised that collaboration between all parties, including the Ministry, Parliament, Legal Service, and banks, is key.
When asked about banks’ willingness to continue suspending foreclosures, Dr. Elias confirmed that banks have committed to maintaining the suspension for properties involving Trapped Buyers who have submitted applications.
Translated from an article published in Politis