The Legalities Behind Paying the Purchase Price of a Cyprus Property
Any property seller in Cyprus as per EU legislation may claim ownership rights in the event that a buyer omits or refuses to pay the purchase price of a property, as long as he gives the buyer reasonable warning, making the time of the payment and the principle of the agreement clear, in the event of non-compliance he will terminate the sale contract.
There is a term in the contract preventing the seller from exercising his right to terminate the agreement in the that the payment of interest interest in the event of default or giving the right to the seller to file an action to receive the purchase price or any balance.
After the official termination of the sale contract, the seller is entitled to claim various remedies through legal action, such as:
- A ruling that the agreement was lawfully terminated.
- An order for the deletion of the agreement from the Land Registry records.
- The balance of the purchase price due with interest.
- An order for the delivery and sale of the property in a private agreement, including an order for the buyer not to trespass in the property, including the recovery of any profits, interests and costs.
The issue of the lawful termination of a sale contract by the seller was examined by the Cyprus Supreme Court in a judgment issued in May this year where the decision of the Court of First Instance was appealed by the buyer. One of the grounds of the appeal was that the term for the payment of the price ceased to be essential, giving the right to the seller to terminate the agreement without any notice.
The Court of First Instance issued a judgment in favour of the seller for the following rights:
- The amount of the purchase price outstanding.
- An order for the re-sale of the property.
- An order for unhindered & unoccupied possession.
- For the buyer to remove all personal belongings.
- A declaration that the sale agreement was lawfully terminated by the seller.
The seller claimed he had lawfully terminated the sale agreement through his Solicitors’ letter due to the buyer’s omission to pay the necessary instalments.
The Supreme Court underlined that while the time for the payment of the various instalments was clearly stated in the agreement between the parties, it ceased to be essential due to the behaviour of both the buyer who did not comply with the time of the payments and the seller who did not insist in its strict compliance. As a result, the seller lost his right to terminate the sale agreement for the reasons stated in his Solicitor’s letter and consequently, The Supreme Court set aside the judgment of the Court of First Instance.