This is a frequent question in relation to properties in Cyprus, and one which has caused significant confusion to buyers and sellers alike. A property CAN be transferred through sale to another individual even if a Title deed has not yet been issued, and this is a rather common occurrence in Cyprus.
Surprisingly, when owning a property in Cyprus, it is not necessary to have a Title deed to prove your ownership. While in the UK this would seem very out of place, in Cyprus it is standard practice due to the time needed by the Land Registry to issue a Title deed for every new property completed.
A Title deed is a document which is issued from the Land Registry in Cyprus which will evidence property ownership and also indicates the relevant information associated with the property, such as its location, its registry number and its value.
Due to the historical delays in issuing Title deeds, the Cyprus Government has legalized three extra procedures for selling properties without Title deeds.
The first procedure relates to the purchase of new properties from Developers. The purchase will be completed through the Contract of Sale. The Law in Cyprus allows for a procedure where the buyer of the property will submit the Contract of Sale (with the developer) to the Land Registry for the purposes of specific performance of the contract, which then records it as a burden on the property. The effect of this is to safeguard the property for the buyer and no other person can subsequently dispute the arrangement.
The second (most commonly via re-sales) is to assign the rights of the existing Contract of Sale of the seller, and developer, to the new buyer. Therefore, through the assignment of the rights of the first buyer (the seller) to the second buyer, the second buyer will purchase the property and when the Title deed is ready, the Land Registry (where the procedure is recorded) will issue the Title deed to the second buyer directly.
The third way (available for re-sales) is by a cancelation of the original Contract of Sale between the seller and the developer and to create a new Contract of Sale between the developer and the new buyer.
In a worst-case scenario when the Land Registry will not issue the Title deed due to financial issues that relate to the developer, the procedures mentioned will be used as the tools for the buyer (commonly referred to as “trapped buyers”) to take over the Title issuing procedures and through legal help complete the Title issuing procedure and obtain a Title deed to his/her name.
All in all, the rather strange Cypriot phenomenon of property transactions being completed without the existence of Title deeds is not an obstacle for interested persons to proceed with the sale or purchase of a property in Cyprus as the Cypriot Government has created the necessary legal framework to bypass that difficulty and enable the property transactions to be completed safely.
If you are considering selling or buying property in Cyprus and you are troubled with the matter of the Title deeds, Judicare Law International can provide an initial free consultation on 01438 840258 or via email enquiry to admin@judicaregroup.com
Judicare can also arrange a free no obligation teleconference via Zoom/ TEAMS.
Getting in touch will allow Judicare to understand your individual circumstances and discuss with you your concerns and objectives. Working with you they can then decide upon the correct strategy to approach and find the solution which is right for you.
