Amendments to the The Sale of Immovable Property (Specific Performance) Law 81 (I) of 2011
Dr. Marina Himoni
The above law has been the subject of amendment in December 2023 with the Sale of Land (Specific Performance) (Amending) Law of 2023 (L. 132(I) of 2023) which was published in the Official Gazette of the Republic of Cyprus on 12 December 2023. The Amending Law of 2023 is read together with the Law of 2011.
The Amending Law has brought forward significant amendments basic amendments that aim to enhance the protection of buyers and of course of particular significance for lawyers that handle transactions for the sale of immovable property who have to be aware of the amendments achieved:
- There has been an effort through the amendments to enhance the protection of buyer with the introduction of a new procedure that provides the right to the buyer, in cases where there is already a mortgage registered unto the immovable property, to submit the amount of the sales agreement to the account of the seller in the mortgagee (lender) and thus have the property which is the subject of the agreement transferred unto the name of the buyer, irrespective of the encumbrances or prohibitions which burden the immovable property or its owner and which follow in priority the agreement.
- Discretionary power is given to the Director of the Land Registry, if a relevant proof of payment issued by the mortgagee (lender) is provided, to discharge a mortgage which is registered unto the property which is the subject of the sales agreement and effect the transfer of ownership of the immovable property which is the subject of the sales agreement unto the name of the buyer, irrespective of encumbrances or prohibitions which burden the property or its owner and which follow in priority the agreement.
- For agreements concluded and submitted after the 12/12/2023, there is a further obligation on the Seller to include as indispensable part of the sales agreement a certificate of search of the immovable property which is the subject of the sales agreement and which has been issued within five (5) working days from the date of the sales agreement (either 5 working days before or after).
In addition to the above amendments, for the depositing of a sales agreement in the Land Registry, after the 12 December 2023, in cases where the encumbrances which the immovable property is subject to are already lodged mortgage or sales agreement and the registered owner is not subject to any prohibition, the depositing of the agreement will be accepted only if it is accompanied by either a written confirmation by the mortgagee (lender) which is known as Type A or a written confirmation by the buyer known as Type C. This provision does not however apply in cases of other encumbrances (e.g. MEMO).
For further information on this topic please contact Dr. Marina Himoni at P. N. KOURTELLOS & ASSOCIATES LLC, by telephone: +357 25 745575 or by fax: +357 25 755525 or by e-mail: mh@kourtelaw.com
Disclaimer
This publication has been prepared only as a general guide and for information purposes. It does not constitute or should not be read as a legal advice. One must not rely on it without receiving independent advice based on the particular facts of his/her own case. No responsibility can be accepted by the authors or the publishers for any loss occasioned by acting or refraining from acting on the basis of this publication.