Cyprus Passes New Law to Unblock 9,497 Trapped Buyers

Cyprus parliament on 25 June 2025 passed an amendment to the Immovable Property (Transfer and Mortgage) Law that reopens the route to title deeds for so-called trapped buyers: people who paid in full but never received a deed, usually because the developer had mortgaged the land. The Interior Ministry said the law offers a way out for 9,497 buyers whose applications had been stuck since a court ruling in June 2024 (Cyprus Mail).

Why applications were frozen

Under the 2015 Trapped Buyers Law (139(I)/2015), the Land Registry could transfer a deed and cancel the developer's mortgages without the bank's agreement. On 20 June 2024 the Court of Appeal ruled that this was unconstitutional, because it removed creditors' security without their consent, and pending applications stopped.

How the new mechanism works

• Who qualifies: contracts deposited with the Land Registry by 31 December 2014, or later under a court order applied for by 31 December 2024.
• Consent first: the holder of a prior mortgage or other encumbrance must agree in writing; the Land Registry can then cancel the encumbrance and transfer the deed to the buyer.
• Court route: if the creditor refuses and the buyer has paid in full, the buyer has 45 days to ask a court to declare the refusal abusive and unjustified. The court order replaces the consent, and other proceedings over the property are suspended once the application is filed.
• Outstanding balance: any unpaid part of the price goes into a special account, now within 60 days of the Land Registry's notice instead of 30.
• No deed yet: where a separate title deed has not been issued, technical documents must be filed within 8 months, and the deed must be issued within 2 years and 8 months.

Bank representatives objected to the court-order provision during the debate, and what counts as an "abusive" refusal will be for the courts to decide.

Protection is not automatic: buyers should check whether their contract qualifies and get legal advice on their case.

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