Cyprus seeks solutions for property buyers 'in limbo' after court ruling

The government is working to help property buyers who are now in a difficult situation after the Court of Appeal ruled the 2015 Real Estate Transfer and Mortgage Law unconstitutional. This law previously allowed buyers to obtain titles to properties they purchased, even if those properties had existing mortgages.

Interior Minister Constantinos Ioannou acknowledged the legal complexities and stated that the government, in cooperation with Parliament and the Legal Service, is seeking alternative solutions despite the court's binding decision.

Neoclis Neocleous, Director of the Land Registry, confirmed that his department is collaborating with the Legal Service and the Ministry of Interior to address the issue.

The Association for the Protection of Bank Borrowers (SYPRODAT) warned that many property buyers are now at risk of losing their investments. SYPRODAT urged buyers to take immediate action if they receive notices of sale. The court's decision removed the Land Registry's power to transfer property titles to buyers who had registered their purchase contracts by December 31, 2014, if those properties were mortgaged before being sold.

The court ruled that the law violated the property rights of banks, which held the mortgages on these properties. As a result, the Land Registry has halted related procedures while awaiting guidance from the Attorney General.

SYPRODAT emphasized the importance of finding a solution, recalling that a previous initiative led by then-Interior Minister Socrates Hasikos had successfully transferred around 11,000 properties to buyers, preventing auctions. However, the recent court decision nullified these measures, which SYPRODAT claims were exploited by banks.

The association called on the government to act quickly. The Interior Minister is working on a new bill expected to be submitted to Parliament by September. SYPRODAT also advised borrowers to stay vigilant in protecting their rights.

[With information from CNA]