Cyprus Legislation | Purchasing Property
6 years September 5, 2017
Property Buyers in Cyprus Waiting for Title Deeds After Court Suspends Aid
The Cyprus land registry has released its decision to suspend procedures regarding the “trapped buyers” problem that has rendered buyers of properties on the island unable to claim title deeds of the land even after rightfully purchasing the property.
The legislation was designed to help these buyers obtain the title deeds by granting the land registry the right to eliminate, transfer or cancel outstanding mortgages of developers.
This however has been found to contradict the constitution and has been contested by banks under terms that the power given to the head of the land registry was unlawful.
An appeal was filed by Alpha Bank against a Paphos developer and a couple from the UK. However the court upheld the ruling on grounds that the law violated Article 26 of the constitution, which allows citizens the right to enter into any binding contract freely. The court also stated that lawmakers have no right to interfere in contracts that abide by the relevant legislation.
MP Aristos Damianou stated that while he is aware of the difficult situation trapped buyers face, he is certain that another agreement can be found without circumventing lenders entirely. He reassured that the AKEL party has already scheduled a meeting with the legal affairs committee in an attempt to find an alternative solution.