Trapped buyers have been given a fresh lifeline, as Cyprus’ banks have agreed to extend the freeze on property sales and repossessions until the end of July 2025, according to Kathimerini’s Panayiotis Rougalas.
In a letter to Parliament’s Legal Affairs Committee, the Cyprus Banks Association confirmed the move. The association’s director general, Michael Kammas, said that this final extension will give buyers more breathing room, provided they acted in good faith when purchasing their property.
The freeze applies to those who have officially filed a Trapped Buyer Application, a move designed to protect individuals caught up in complicated property deals where, through no fault of their own, their ownership remains in limbo.
This decision comes after DISY MP and chairman of the Legal Affairs Committee, Nikos Tornaritis, wrote to banks and credit-acquiring companies (vulture funds) earlier this month asking them to extend the sales freeze.
While this is positive news for trapped buyers, a permanent fix is also on the horizon. The Ministry of Interior is finalizing a bill aimed at solving the issue once and for all. The draft legislation has already been sent to the House of Representatives for review.
It’s worth remembering that banks and credit companies had voluntarily agreed back in September 2024 to halt sales involving trapped buyers. Initially, this pause was set to expire at the end of 2024, but it was later extended to the end of April 2025. With the latest decision, buyers now have until July 31, 2025, to catch their breath, giving lawmakers more time to roll out permanent protections.
(This article was first published in Knews 28 April 2025)
