Many purchasers of properties in Cyprus especially those residing abroad, may wish to know what their rights and protections are in cases of purchase of properties. This is something analyzed in the Sale of Immovable Property (Specific Performance) Law 81 (I) of 2011 which has helped to protect the rights of property purchasers in the following amongst others manners.
The main provisions of the said Law include amongst others:
(i)Remedy of specific performance
A purchaser of immovable property may secure the remedy of specific performance by depositing a duly stamped copy of the contract of sale at the Land Registry within six (6) months from the date of its execution. The purpose of this is to prevent the vendor from transferring the property to someone else etc. This also enables the purchase to apply to the Court for an order to transfer the property in his or her name provided that the vendor refuses to do so.
(ii) Registration of the property in the purchaser’s name, regardless of a prior
Under the new Law the purchaser is given the option for the payment of the mortgage to the mortgagee. When such amount is paid by the Purchaser, the Court may issue an order for specific performance, directing the registration of the property in the name of the purchaser free of the mortgage and any encumbrance.
securing the planning permit, the vendor is obliged to determine the value
ratio of each portion of the building/land to be divided and deposit it in the
Registry. This information is available to the prospective purchaser
provided that the vendor has deposited it at the Registry. It is
important for the purchaser to know that (notwithstanding the fact that the
sale contract is accepted for deposit by the Land Registry without requiring a
planning permit) it is impossible to exercise the right to override the ranking
in priority of the mortgage without the prior determination of the value
ratio. Consequently, any prospective buyer is advised to confirm that a
planning permit exists before deciding whether or not to proceed to a sale
agreement. It is hereby noted that the priority of the sale contract over
a prior mortgage does not apply to contracts concluded before 01.08.2011,
unless the consent of the vendor and the mortgagee is secured.
The Law protects the amount which has been paid by the purchaser in cases where for any reason it is impossible to implement the Contract for the sale of the property. The same can be applied by the Court in the form of an order for compensation. This protection arises to the purchaser from the date of depositing the contract.
For further information on this topic please contactMs. Nada Starovlah (firstname.lastname@example.org) at SOTERIS PITTAS & CO LLC, by telephone (+357 25 028460) or by fax (+357 25 028461)