The question on many people’s minds remains: will the Cyprus government finally take decisive action to resolve the long-standing and deeply unfair issue of trapped buyers? Or is that still a step too far?
What is the trapped buyers problem?
Thousands of property buyers in Cyprus – many of them foreigners – have paid in full for their homes, met all contractual obligations, yet remain unable to secure legal ownership in the form of a Title Deed. Why? Because their developers have existing mortgages or charges against the land, which block transfer of ownership.
After the original trapped buyers law was declared unconstitutional by the Appeals Court, Interior Minister Constantinos Ioannou reported that 9,497 buyers were still trapped – a staggering figure. It’s likely that many more buyers remain unaware that they, too, are in this precarious legal limbo.
What the trapped buyers proposal seems to suggest
Under the revised scheme, buyers would need to seek written consent from whoever placed the charges (typically a bank) to have them released or cancelled. If that consent is refused without justification, and the buyer has paid in full, then a court order can be sought to override the refusal.
Sounds fair in theory – but here’s the reality:
- Buyers must initiate legal proceedings (ching-ching! for lawyers).
- Cases can take years to move through the courts.
- If the buyer wins, whoever placed the charges can appeal to a higher court, leading to further delays and more legal costs (another ching-ching! for lawyers).
Apart from being an money-earner for lawyers, is that really a “solution” for trapped buyers? Or just a legal obstacle course with no end in sight?
Update 15 May
The Cyprus Banking Association (CBA) has objected to court orders overriding the creditor’s consent to remove pre-existing mortgages and charges arguing it’s unconstitutional. The CBA has recommended that the trapped buyer needs explicit consent from the creditor to avoid constitutional issues. Concerns were also raised about vague legal terminology, particularly the use of “abusive” and “unjustified,” which could lead to uncertainty.
What about planning violations?
The situation gets even messier when planning infringements are involved.
In November 2022, then-Interior Minister Nicos Nouris stated that around 15,000 Title Deed applications were still awaiting approval – many of which could never be granted due to planning violations that could not be resolved. In some cases, he even admitted that demolition might be the only option.
So, the question becomes: If a buyer’s property must be demolished, who compensates them?
One friend of mine bought an off-plan apartment in Paphos. When it turned out the developer had breached planning rules, the Title Deed couldn’t be issued. In the end, the buyers had to pool money to fund the necessary remedial work themselves (which cost in excess of €100,000.) Why wasn’t the developer held responsible and made to pay?
How should the government help trapped buyers?
Here are a few practical suggestions the Cyprus government should seriously consider:
Criminalise planning infringements
Hold developers legally and financially responsible for planning violations. Make them either correct the issue or pay a fine large enough to fund third-party repairs – or end up in jail. And if a buyer suffers losses because of these violations? The developer should fully compensate them.
Guarantee title deed system
In Germany, notaries are mandatory for every property sale. The notary handles the legal checks and ensures that once a contract is signed, the buyer is quickly and securely registered as the legal owner in the Grundbuch (land register). The government guarantees this system, which typically delivers title security within weeks – not years.
Cyprus? No notary required. Transactions are handled by lawyers (ching-ching), and buyers can wait years – sometimes decades – to receive their deeds. Often, they only receive a sales contract, not legal ownership.
France operates a similarly strict and reliable system.
Government-run building inspections
Introduce independent, incorruptible inspections during construction, funded by a small levy on planning and building applications. This would reduce future violations and ensure build quality from the outset.
Use of escrow accounts
All buyer payments should go into escrow accounts. This would protect buyers and ensures that banks, tax authorities and suppliers are paid by the developer.
Do not reject new applications without Title Deeds
The government must not reject new trapped buyer applications in cases where Title Deeds have not been issued. There are potentially hundreds, possibly thousands of properties that cannot be issued with Title Deeds due to planning violations. The government must help all innocent buyers trapped by planning violations.
The project supervisor (architect or civil engineer) is the main professional responsible for declaring and ensuring compliance with the Town Planning Permit and Building Permit conditions. Compliance is mandatory before Title Deeds can be issued.
I’m aware of a number of cases where project supervisors have refused to declare compliance because: (i) the development does not comply with the permits (ii) they have not been paid by the developer who engaged them.
Cyprus must step up
If Cyprus wants to be seen as a modern, trustworthy EU country, it must do more than just tinker around the edges of a broken system. It needs bold reforms, firm enforcement, and a real commitment to protecting property buyers – not leaving them at the mercy of rogue developers, dodgy lawyers, bureaucratic delays, or endless court battles.
The trapped buyer situation has dragged on for far too long. It’s time for real action – and not just for the sake of those already affected, but to restore confidence in the property sector and uphold the country’s international reputation.
