The Law applies to sale and purchase agreements, exchange agreements and exchange in specie  agreements (σύμβαση αντιπαροχής) for immovable properties (the Contracts) signed on or after 12 December 2023 and focusses on safeguarding the interests of buyers.

Sellers are now statutory obliged to include an immovable property search certificate (Search Certificate), which is obtained from the Land Registry Department, detailing any encumbrances on the property being sold. The Search Certificate must be appended to the Contracts and must be dated no later than five working days from the day of execution of the Contracts.

In relation to Contracts which are subject to mortgages or prior lodged agreements, their submission to the Land Registry Department is now contingent upon the provision of a written declaration of Type A  or Type C.

In cases where, there is a registered mortgage encumbering the relevant immovable property, a Contract can be submitted with the written declaration Type A, pursuant to which the buyer and/or the seller can deposit an amount equal to the 95 per cent of the consideration of the Contract (the Amount) into a bank account of the seller and the mortgage lender, by countersigning the written declaration Type A, undertakes to remove or release the said immovable property from the said mortgage and deliver to the buyer a signed written declaration Type B.

Alternatively, the buyer has the option to proceed with the submission of the Contract to the relevant District Land Registry, without it being accompanied by the written declaration Type A by submitting the Contract with written declaration Type C which confirms that the buyer is aware of the existing mortgage.

In case of non-adherence with the Law the Director of the Land Registry Office has the discretionary power to impose administrative fines of up to:

• €100,000 on mortgage lenders who deliberately fail to comply with their obligation of accepting the amount specified in the Type A form and proceed with providing the Type B form for releasing the relevant immovable property from the mortgage; and
• € 10,000 on sellers who fail to provide a Search Certificate as an integral part of the Contact.

Overall, these legislative changes reflect a proactive approach to improve the security and efficiency of property transactions, aligning with broader efforts to strengthen legal frameworks and promote transparency in real estate dealings in Cyprus.

The Sale of Property (Specific Performance) Law N. 132(I)/2023 (only in Greek) can be found here.

Cyprus Land Registry announcement can be accessed here.