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ARTICLE · 12 OCTOBER 2015

The Legislative Framework For "Trapped" Property Buyers

Haviaras & Philippou L.L.C
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The main problem in the Cyprus property market has been the failure of the developers, due to their financial problems, to issue title deeds to the buyers who paid for the property bought (the "Property") or to transfer the title in case is issued.

CyprusReal Estate and Construction
Andreas Haviaras
Andreas Haviaras
Stalo Papoui
Stalo Papoui
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The main problem in the Cyprus property market has been the failure of the developers, due to their financial problems, to issue title deeds to the buyers who paid for the property bought (the "Property") or to transfer the title in case is issued. In this sense the buyer who paid for the Property but did not receive a title is a trapped buyer as he cannot exploit the Property (the "Trapped Buyer").

About 78.000 Trapped Buyers who meet the sale agreement conditions for the property cannot get title over it due to mortgages and or other encumbrances of the seller/developer on the Property.

Since 4th of September however, the Transfer and Mortgaging of Real Estate (Amendment) Law, Ν. 139(1)/2015 came into force (the "Law"). The Law is designed to protect the Trapped Buyers by releasing the Property from the developer's obligations to their lenders. Specifically, the Law restricts the lenders to apply offset of properties mortgaged by the developers which are

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