Earlier today, a new article was shared detailing the revamped legislative proposal aimed at addressing the persistent issue of the so-called “trapped buyers” in Cyprus.

This matter involves numerous individuals who, despite having completed payments for their properties, are unable to receive their title deeds due to existing mortgages held by the sellers. This situation emerged after the Court of Appeal ruled the former protective law as unconstitutional.

The draft bill, crafted by the Parliamentary Legal Affairs Committee, is a step towards alleviating this problem. It is set to be reviewed by the committee members today, with intentions to finalize the text for submission to the House of Representatives this Thursday. This urgency is driven by the impending expiration of the current suspension on property repossessions, previously granted by the Association of Banks and the Association of Credit Acquiring and Servicing Companies, which is set to lapse at the end of July.

Significantly, the new proposal recognizes the large number of buyers affected, but reportedly only benefits less than half of them. In a past session, Interior Minister Constantinos Ioannou indicated that 9,497 buyers are without title deeds due to the nullified legislation. Some progress has been made for about 2,500 individuals in cases where properties are unencumbered or encumbered after the sales contract filing. Yet, approximately 5,400 cases remain pending until title deeds can be determined for those units. For another 4,080 cases involving encumbrances placed post-contract, consent from the party responsible for the encumbrance will be necessary.

The bill proposes essential amendments to the Immovable Property (Transfer and Mortgage) Law, focusing on reinstating protections in a constitutional format for “trapped buyers.” The state acknowledges the complexity of the problem and the need for a timely resolution, striving to uphold the property rights of all parties: buyers, sellers, and mortgage lenders.

It outlines that contracts signed and registered by December 31, 2014, with the District Land Registry, or those agreed and filed with the District Court by December 31, 2024, are eligible. In cases with prior registered encumbrances, written agreement for waiver or cancellation must be obtained from the beneficiaries of those charges.

Additionally, inspired by a suggestion from MP Panikos Leonidou, there is a provision allowing courts to grant necessary consent through an order should a party unreasonably withhold it—even after the buyer has fully paid. Although not initially proposed by the ministry, this is deemed crucial amid wider legislative shifts.

Within the new framework, for applications lacking title deeds, a feasible issuance is necessary. This proposal stipulates that any existing application stays suspended until review completion. If a title deed isn’t facilitated within given frames, the application is prone to rejection unless thorough documentation is furnished. Moreover, if it’s deemed unviable to issue a title deed for any other legal reasons by the deadline, the Director holds the authority to dismiss the application.

While the proposal is vital, it is important to note that it does not encompass everyone affected. Fewer than half of the 9,497 trapped buyers will find resolution, excluding the potential 15,000 hindered by significant planning issues. Roughly 2,500 cases have already been sorted or are on the verge of resolution under current frameworks. The rest still struggle, awaiting clarity on title issuance or consent from financial parties involved with post-contract mortgages, sometimes requiring court decisions for transfer completion.

Despite governmental reservations about the bill’s impact on existing laws, its implementation appears imperative. For new applications, a title deed must exist prior, and pending applications face rejection if pending documents aren’t submitted within eight months or a title isn’t issued within 32 months. Applications may also face denial if title issuance is legally deemed impossible.