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Introduction
On 26 June 2025, Cyprus enacted the Transfer and Mortgage of Immovable Property (Amendment) Law of 2025, No. 110(I)/2025 (Official Gazette No. 5045, 4.7.2025), reshaping the statutory framework associated with the protection of so-called "trapped buyers". The term generally refers to purchasers who have honoured their contractual obligations—often including full payment of the purchase price—yet remain unable to obtain registration of title in their name due to pre-existing encumbrances and/or prohibitions burdening the seller/registered owner.
Background: Why the Law Was Amended
The amendment followed the Supreme Court's decision in Civil Appeal No. 285/2018 (20.6.2024), in which the previous buyer-protection provisions were held unconstitutional as contrary to Articles 23 and 26 of the Constitution. The new law seeks to restore a workable mechanism in a constitutionally compliant manner, recalibrating the interests of bona fide purchasers, sellers/developers and secured creditors.
Scope of the Revised Regime
A central element of Law 110(I)/2025 is the replacement of section 44IΗ and the re-definition of the scope of sections 44IΘ to 44KΖ. In broad terms, the revised regime applies subject to specific statutory conditions, including (among others) the existence of a contract of sale lodged with the competent District Lands Office within the timeframes set out in the amendment, and the issuance of a separate title deed for the property.
The Core Change: Written Consent for Prior Encumbrances
The most practically significant update concerns transfers where registered encumbrances and/or prohibitions predate the lodgement of the contract of sale. In such cases, the transfer route is now conditioned upon the submission of "written consent" by the persons in whose favour those encumbrances/prohibitions operate, for the release, discharge or cancellation of the relevant burdens. The definition clarifies that "written consent" may include a written release/waiver issued by an "authorised institution", which includes licensed credit institutions and purchasers of credit facilities.
Court Relief Where Consent Is Abusively Refused
Where written consent is refused, and provided that the purchase price has been paid in full, the amendment introduces an express judicial mechanism. The buyer may apply to Court within forty-five (45) days from the refusal, seeking an order recognising the refusal as abusive and unjustified. If issued, a copy of that court order may be filed with the Director of the Department of Lands and Surveys as a substitute for the required written consent, allowing the process to proceed on that basis.
Suspension of Parallel Processes Pending the Court Order
The law also provides for the suspension of certain pending procedures under the relevant parts of the principal law, as well as under other applicable legal frameworks, until the issuance of the court order—provided that a copy of the court application is deposited with the competent District Lands Office. This deposit operates as a restriction against dealings with the property while the court proceedings are pending.
Procedural Deadlines and Transitional Arrangements
Beyond the consent/court mechanism, Law 110(I)/2025 introduces additional procedural requirements and time limits. These include strengthened conditions for the Director's examination of applications, transitional timelines linked to the issuance of separate title deeds for pending cases, as well as document-submission and payment-related deadlines (including payment of any remaining balance into the special temporary account where applicable). In practice, these timelines can be determinative and require careful tracking from the moment notices are issued and/or applications are filed.
Conclusion
Law 110(I)/2025 represents a material shift in how transfers are handled where prior encumbrances exist, placing written consent—and, where necessary, targeted court relief—at the centre of the process, while tightening procedural steps and timelines. Given the potentially significant impact on buyers, sellers/developers, mortgagees and credit-facility managers, early, case-specific legal assessment is essential.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
