After years of delays and uncertainty, a new legislative proposal intended to address the plight of thousands of trapped buyers in Cyprus is inching its way toward a vote in Parliament.
Although recent developments suggest some progress, serious concerns remain about how effective this law will be – and whether it goes far enough to deliver justice.
A familiar story: promises and partial solutions
The proposed law targets a long-standing issue affecting nearly 9,500 property buyers who, despite having paid for their homes in full, do not have title deeds. For many, this is due to outstanding developer loans or pre-existing mortgages that were never disclosed at the time of purchase by the lawyers who (allegedly) represented their interests and prepared their contract of sale.
In June 2024, the Court of Appeal ruled that removing such mortgages without the lender’s consent violates the constitutional property rights of those lenders. That ruling severely limited the government’s ability to help buyers, many of whom face the risk of losing their homes.
Now, the Parliamentary Legal Affairs Committee has finalised a draft law designed to offer legal protection to roughly 4,000 of those affected. But even this “solution” has come at a cost.
Compromise with banks: necessary or concessionary?
Support from banks and vulture funds didn’t come freely. They initially rejected parts of the bill that gave buyers the right to seek court orders to remove existing charges on their properties. Following behind-the-scenes discussions, an informal agreement was reached, provided that several conditions were met.
Among the concessions:
- Trapped buyers must act within strict deadlines to obtain information from the Land Registry.
- Tight timeframes will apply for court applications and hearings.
- The courts’ discretion over scheduling such cases will be restricted.
These additions raise concerns that the legal process could still be too complex, burdensome, or fast-moving for average home buyers to navigate effectively – especially for those without legal support.
What about the other 5,000+ trapped buyers?
While this legislation may help some, it leaves thousands of others trapped buyers in limbo. Many are unable to secure title deeds due to planning violations.
These violations not of the buyers’ making, but of the developers who built the properties and who failed to comply with the various permissions and permits authorised for their construction. These buyers remain outside the scope of the proposed law.
MP Nikos Tornaritis has acknowledged the issue and claims that Parliament wants to address it. But there’s little clarity on when (or if) this will happen.
Mixed reactions from lawmakers
Not everyone is celebrating. While MPs have spoken about “bridging differences” and making progress, others have been more cautious. AKEL MP Aristos Damianou stressed that the law only reached this stage through difficult compromise, and even now, the final version is undergoing legal and technical adjustments.
DIKO MP Michalis Yiakoumi struck a more optimistic note, suggesting the bill will move forward soon.
But optimism doesn’t guarantee results, especially when those affected have been misled or neglected for years and in some cases many decades.
Still no solution for thousands of trapped buyers
While the pending vote in Parliament might bring some relief, it’s far from a comprehensive solution. For many trapped buyers, the latest developments represent just another chapter in a long saga of bureaucracy, broken promises, and power imbalances.
Until there’s a clear, fair, and accessible system for delivering title deeds and holding developers and lenders accountable, true justice for all trapped buyers remains elusive.
