Trapped buyers could lose their homes in Cyprus
The Limassol & Paphos District Courts that ruled the trapped buyers’ law as unconstitutional will have enormous repercussions for individuals who have been tricked into buying property on land in Cyprus that developers had previously sold to the bank.
Thousands of property owners in Cyprus who bought in good faith will be negatively affected. The so called trapped buyer’s legislation was introduced in 2015 as part of the Troikas bailout agreement with objective to transfer properties to purchasers who had rightfully fulfilled their obligations to the vendor, but did not receive its Title Deed.
A Title Deed is a legal document confirming ownership rights of a property. Until such time as a Title Deed holds the name of its purchaser, they do not legally own the property.
Typically this occurred when a developer had mortgaged the land on which he was building and an encumbrance was registered against the property in question and the developer was unable to repay this mortgage and other debts.
For more information on Cyprus land & immovable property procedures, read our step-by-step guide to purchasing a property in Cyprus.