Encumbrance

How it works

An encumbrance (εμπράγματο βάρος) is a right or restriction registered against a property at the Land Registry. It is attached to the property, not to the owner, and stays registered until it is released or cancelled. The main types are:

• Mortgage (υποθήκη): security for a loan, usually from a bank.
• Memo: a charge registered on the strength of a court judgment against the owner.
• Prohibition (απαγόρευση): a bar on transferring or charging the property, for example under a court order.
• Deposited sale contract: according to the DLS, depositing a contract creates an encumbrance that ranks from the date of deposit.

Encumbrances rank by date, so an earlier mortgage comes before a later buyer's contract. A title deed does not show charges registered after it was issued. The current position appears on a search certificate "with encumbrances and prohibitions", which costs €15 for one property.

Why it matters when you buy

You can buy a mortgaged property, but the mortgage has to be released when you pay. Under Law 132(I)/2023, a contract for a mortgaged property can be deposited with Form A, signed by the seller and the bank: you pay the price into the seller's account named by the bank, and the bank must release the property. After the transitional period that ended on 16 May 2026, the DLS can fine banks that fail to do so, from €5,000 to €100,000 depending on the mortgage amount (DLS).

If an earlier mortgage is never released, you can become a trapped buyer: paid in full, but unable to get the title.