Cyprus Property Law

The Cyprus legal system is based on British requirements, as Cyprus was a British colony until 1960. Further, with EU membership, the Immovable Property Law (Cap. 224) was harmonised with European Union laws and regulations.

The law governs the fundamental aspects of property ownership, including how property is held (tenure), recorded (registration), and valued.

Cyprus immovable property law

Cyprus immovable property law was enacted in 1946. It is regarded as the cornerstone of immovable property in Cyprus, dealing with all matters concerning the tenure, registration, disposition and valuation of immovable property within the framework of the Cyprus land registration system, in which immovable property is defined, drawn, recognised, and valued.

Land Registry Department

The Land Registry Department of Cyprus was established in 1858. It is considered one of the most advanced, reliable, and trustworthy worldwide. It was founded on the British model.

Every interest or right over or affecting immovable property (land, buildings, trees, plantations, rivers, wells, and all rights relating to estate and buildings) is registered. It can be traced in the Registries of the Department.

Purchasers of Cyprus property will be very secure, as any information related to their potential purchase can be traced from Land Registry records before the completion of the transaction. Also, after the purchase, their contract of sale or the transfer of the title deed is registered at the Registry.

Depositing the contract of sale to the Land Registry gives the Purchaser the right to seek specific performance of the terms and conditions of the contract. Thus, once the title deed is issued, register the property and title deed in the Purchaser’s name.

Property law amendments

In late 2023, Cyprus passed Law N. 132(I)/2023, amending the Sale of Property Law (Specific Performance) of 2011 to protect real estate buyers. It ensures that the property transfer will proceed once the buyer fulfils his contractual obligations.

Contracts of sale must include a land registry search

Under the new section 4(a)(1A), the seller must include, as an integral part of the contract, a Land Registry search certificate not older than five working days from the signing of the contract.

It may also be up to five days later than the singing date. This document must be signed by the parties and attached to the contract. It's an official document from the Cyprus Department of Lands and Surveys (DLS) that provides information about property burdens, such as mortgages.

The amending law came into force on December 12, 2023, and applies to contracts for the sale of property signed after that date.

New procedure for submitting contracts at the Land Registry

If the property is subject to a mortgage, the lender and the seller must provide specific documents to enable the registration of the contract.

The required document is called Type A. It is a declaration from the seller and the lender confirming that:

1. Once the buyer or seller has repaid 95% of the mortgage amount to the bank account specified in the letter, the lender must issue a type B receipt to the buyer confirming that they have released the property from the mortgage.
2. If they fail to remove the mortgage despite the payment, the seller and lender confirm that once the buyer presents the type B receipt to the DLS, the DLS will transfer the title deed to the buyer.

Although not recommended, an alternative is to proceed without a type A but with a type C. Type C is a statement from the buyer saying they wish the contract of sale to be submitted without a type A statement. In this case, the buyer will not have the protection that type A gives.

Contracts signed before December 12, 2023, can still benefit from the specific performance order under the old law (pay any outstanding mortgage and seek specific performance against the seller).

Nevertheless, on June 20, 2024, the Court of Appeal (upon application from a bank) held that the DLS Director's power to delete a mortgage was unconstitutional. Applications from buyers without title deeds are now frozen. The government is consulting with banks and other stakeholders to proceed with new legislation.

The seller is still obliged to include a five-day search certificate in the contract of sale. The buyer should still deposit the contract with the DLS to apply for specific performance under the old procedure.

Administrative fines

The Director of the Land Registry office may impose an administrative fine of:

• EUR 10,000 on sellers who do not comply with the search certificate requirement.
• EUR 100,000 on sellers who do not release the property from the mortgage.

If you need more information about the real estate law in Cyprus, please contact our Cyprus property lawyers team.