Buying in Cyprus: Why Due Diligence Matters More from 18 May 2026

The Department of Lands and Surveys (DLS) has ended a long-standing practice: it will no longer inform buyers about mortgages, prohibitions or other encumbrances on a property when a sale contract is lodged. At the same time, from 18 May 2026, when the transitional period ends, sellers who fail to attach a recent Search Certificate to the contract face administrative fines, according to a DLS notice reproduced by KPMG. Together, the two changes move responsibility for checking a property firmly to the stage before signing.

Why the DLS stopped notifying buyers

Following a legal opinion from the Attorney General after a relevant court decision, the DLS clarified that it has no legal obligation to inform buyers about encumbrances at the lodging stage. It considers such information untimely, because it reaches the buyer only after the contract has been signed, and says the practice caused substantial delays in lodging contracts.

The Search Certificate becomes the key document

Under Law 132(I)/2023, every sale contract concluded since 12 December 2023 must include, as an integral part, a Search Certificate for the property issued no more than five working days before signing. From 18 May 2026, a seller who fails to do this faces a fine based on the sale price, from €500 to €10,000.

The DLS also points out that information on a property's legal status can be obtained in advance, under Article 51A of the Immovable Property (Tenure, Registration and Valuation) Law, Cap. 224. It urges interested parties to obtain it in good time, before entering into any contract.

New lodging forms

The single application form DE 129 has been replaced by three new forms: DE 314 for sale contracts, DE 315 for exchange agreements and DE 316 for land-for-development agreements. The new forms require the essential terms to be referenced by page and paragraph of the contract, and they no longer list encumbrances in detail, since that information comes from the Search Certificate. Applications on the old DE 129 form will be accepted until 4 June 2026.

A due diligence checklist for buyers

Before paying a reservation fee or signing a contract:

• Get a Search Certificate early, through your lawyer, and check it for ownership, mortgages, memos, prohibitions and previously deposited contracts.
• Check the seller's certificate attached to the contract is dated within five working days of signing.
• If the property is mortgaged, make sure the contract is accompanied by Form A, under which payments go into the seller's account designated by the lender, and the lender is obliged to release the mortgage once the price is paid.
• Check the planning and title position: whether a separate title deed exists, and whether permits and final approval are in place.
• Deposit the contract at the District Lands Office within six months of signing to secure the protection of the Specific Performance Law.

What this means

For buyers, the state will no longer flag problems after the contract is signed, so checks must happen before any money changes hands. For sellers and agents, a compliant Search Certificate is now mandatory in practice, with fines from 18 May. For lawyers, the new lodging forms change the paperwork from June.

This article is for information only and is not tax or legal advice.