Cyprus Property Law Amendments: Stronger Protection for Real Estate Buyers

Updated: February 17, 2026

In late 2023, Cyprus adopted Law N. 132(I)/2023, introducing significant amendments to the Sale of Immovable Property (Specific Performance) Law.

The reform strengthens buyer protection and reinforces the principle that once a purchaser fulfils their contractual obligations, the transfer of property ownership must proceed accordingly.

The new provisions entered into force on 12 December 2023 and apply to sale contracts signed after that date.

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Mandatory Land Registry Search Certificate

One of the most important changes concerns transparency regarding property encumbrances.

Under the newly introduced Section 4(a)(1A):

The seller must attach a Land Registry search certificate
The certificate must not be older than five working days before signing (or up to five days after signing)
It must be signed by both parties
It must form an integral part of the contract

The certificate is issued by the Cyprus Department of Lands and Surveys (DLS) and provides official information regarding:

Mortgages
Charges
Other encumbrances affecting the property

Failure to include this document constitutes a violation of the amended law.

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New Procedure for Lodging Contracts with the Land Registry

The amendments introduce a new mechanism to protect buyers when the property is subject to a mortgage.

🔻Type A Declaration (Primary Protection Mechanism)

Where a mortgage exists, both the seller and the lender must provide a document known as Type A.

This declaration confirms that:

Once 95% of the outstanding mortgage amount is paid into a specified bank account,
The lender must issue a Type B confirmation to the buyer,
The Type B document confirms that the property has been released from the mortgage.

If the lender fails to remove the mortgage despite receiving payment:

The buyer may present the Type B confirmation to the DLS,
The DLS will proceed with transferring the title deed to the buyer.

This mechanism is designed to prevent situations where buyers pay the purchase price but remain exposed to pre-existing mortgages.

🔻Type C Declaration (Alternative – Not Recommended)

Alternatively, the buyer may submit a Type C statement, declaring that they wish to proceed without a Type A declaration.

However, this option significantly reduces the buyer’s legal protection and is generally not advisable.

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Contracts Signed Before 12 December 2023

Contracts concluded before the amendments remain governed by the previous legal framework.

Under the earlier regime, buyers could:

Repay the outstanding mortgage themselves, and
Apply for a specific performance order against the seller

However, legal developments have complicated this route.

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Court of Appeal Decision – June 20, 2024

On 20 June 2024, the Court of Appeal of Cyprus ruled (following an application by a bank) that the power of the Director of the DLS to unilaterally delete a mortgage was unconstitutional.

As a result:

Applications by buyers who have not yet obtained title deeds are currently frozen.
The government has initiated consultations with banks and other stakeholders to introduce corrective legislation.

Despite this ruling:

Sellers are still required to attach the five-day Land Registry search certificate.
Buyers should continue depositing their contracts with the DLS to preserve rights under the specific performance procedure.

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Administrative Penalties

The amendments introduce substantial administrative fines for non-compliance.

The Director of the Land Registry may impose:

€10,000 on sellers who fail to include the required search certificate
€100,000 on sellers who fail to release the property from an existing mortgage

These penalties reflect the government’s intention to strengthen transactional security and restore confidence in the property market.

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Practical Impact of the Amendments

The 2023 reforms aim to:

Increase transparency in real estate transactions
Protect buyers from undisclosed encumbrances
Ensure smoother transfer of title deeds
Reduce systemic risks in the property sector

However, the 2024 Court of Appeal ruling has temporarily limited certain enforcement mechanisms, meaning further legislative adjustments are expected.