New Law Passed to Free Trapped Buyers in Cyprus 2025
Connor Legal welcomes the official passage of the 2025 Amendment to the Immovable Property (Transfer and Mortgage) Law, approved by the Plenary Session of the House of Representatives on 26 June 2025. This legislative reform finally offers a constitutionally compliant solution for approximately 9,500 “trapped buyers”, whose title deed applications remained frozen following the Supreme Court’s landmark ruling in June 2024, which invalidated core provisions of the 2015 framework as unconstitutional.
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The Problem of Trapped Buyers
The original 2015 legislation amendment (139(I)/2015) aimed to protect purchasers who had fully paid for immovable property but could not obtain title due to developers’ debts, mortgages, or other encumbrances. However, in Appellate Case No. 285/2018, the Supreme Court ruled that provisions allowing unilateral cancellation of pre-existing charges without creditor consent violated Articles 23 and 26 of the Constitution, effectively halting the process for thousands of legitimate purchasers.
Key Provisions of the 2025 Amendment
The new amendment, passed as Law 23.02.066.102/2025, introduces a set of safeguards and practical procedures to resolve this impasse while respecting constitutional boundaries. The most important elements include:
- Conditional Continuation of Trapped Buyer Applications
The framework introduced under the 2015 law (Articles 44IH–44KZ) may continue to apply only if:
- The sale agreement was signed and lodged at the Land Registry on or before 31 December 2014, or if submitted following a court order issued in an action filed by 31 December 2024;
- A title deed has already been issued for the relevant unit;
- Any pre-existing registered encumbrances (mortgages, prohibitions) are resolved by:
- Obtaining written consent from the encumbrance holder; or
- Securing a court order in cases of abusive or unjustified refusal, provided the full purchase price has been paid.
- Timeframe for Supporting Documentation
For applications submitted before the entry into force of the 2025 Law:
- Buyers or developers must provide relevant certificates (e.g. building permits, completion notices) within 8 months of notification by the Land Registry;
- The title deed must be issued within 2 years and 8 months from the effective date of the law;
- If the issuance of a title becomes impossible due to legal or factual barriers, the application may be rejected.
- Procedures Where No Separate Title Has Been Issued
In cases where the title deed has not yet been issued:
- The Director of the Land Registry will temporarily suspend all related legal proceedings (bankruptcy, enforcement, liquidation, etc.) until the application is fully assessed;
- If necessary documentation is not submitted within the prescribed deadline, the application may be dismissed, and any balance paid into a special escrow account will be returned.
- Additional Legal Safeguards Introduced
- Notices for payment or requests for consent are now formalised through revised statutory templates (Forms ID and IHA);
- Clearer procedural rights are granted to mortgagees and credit acquirers to ensure due process;
- The 60-day period for paying the remaining purchase price into the designated account has been reaffirmed, with express rejection rights if the buyer fails to comply.
A Collaborative and Constitutionally Grounded Reform
The law is the result of close cooperation between the Ministry of Interior, the Parliamentary Legal Affairs Committee, the Legal Service of the Republic, the Cyprus Bar Association, and industry stakeholders such as banks and credit acquisition companies. The legislative text carefully balances constitutional property rights with the need to regularise legitimate property transactions.
Connor Legal Commentary
This amendment reaffirms Cyprus’s commitment to legal certainty and constitutional integrity in real estate transactions. While the law introduces more stringent procedural safeguards, it ultimately serves to restore confidence in the legal system and unlock thousands of stalled property title transfers.
Connor Legal remains at the forefront of advising clients — both domestic and international — who are navigating complex property disputes, title deed delays, and trapped buyer scenarios. We provide end-to-end legal support, including:
- Land Registry applications and follow-up;
- Judicial applications for relief against unjustified refusals;
- Due diligence on pre-existing charges and developer risks;
- Representation in Court where needed.
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