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Cyprus Specific Performance Law 132(I)/2023: Buyer Protection

  • May 4, 2025
  • 4 min read

Updated: Jul 28

Cyprus Law 132(I)/2023 changed the way a sale contract should be prepared where the property is already affected by a mortgage or another registered burden. The change matters. It moves part of the risk check to the front of the transaction.

It does not make every purchase safe. It does not replace legal due diligence. And it does not turn a deposited contract into a title deed.

What changed on 12 December 2023

The amendment applies to contracts for the sale of immovable property signed on or after 12 December 2023. For those contracts, the seller must attach a Land Registry search certificate for the property as an integral part of the agreement.

The Department of Lands and Surveys now describes the timing precisely: the certificate must be dated within five working days of signing, whether before or after the signature date. A certificate obtained weeks earlier is not the certificate required by the amended process.

The point is simple. The buyer should see the registered position at the time of the deal, not rely on an old search, a sales brochure or a verbal assurance.

The search certificate is disclosure. It is not the whole investigation.

A current search can reveal registered ownership, mortgages, memos, prohibitions and deposited contracts. That is essential information. It still leaves other questions open.

  • Does the property match the approved plans?

  • Are the planning and building permits in order?

  • Is there a separate title deed, and if not, what has delayed it?

  • Are there unauthorised works, additions or pool issues?

  • Does the contract deal properly with release of the mortgage, completion documents and default?

  • Can the seller or developer actually perform the promises being made?

  • Are the payment instructions consistent with the mortgage-release mechanism?

This is why the search must sit inside a proper Cyprus property due-diligence review, not replace it.

Where the property is mortgaged

The amended framework uses written forms to deal with a mortgage over the property being sold. The documents are technical, but the commercial point is not.

Form A is a written declaration by the mortgagee and the seller, acknowledged and signed by the buyer. It states a specified amount and identifies the seller's bank account. If the buyer pays that amount into the stated account, the mortgagee is expected to issue the payment confirmation known as Form B and release the property from the mortgage, or discharge the mortgage as the case requires.

Form C is different. It records the buyer's written decision to deposit the contract without Form A. That may allow the deposit to proceed, but the buyer is proceeding without the protection of the Form A payment-and-release mechanism. The reason should be understood before Form C is signed.

Do not treat these forms as standard attachments to be signed at the end. The amounts, account details, mortgage position, completion timetable and contract clauses must agree with one another.

Deposit of the sale contract

A qualifying contract should be deposited at the competent District Lands Office within six months from signing. A court order may be needed for late deposit. Waiting until completion, or assuming the seller will handle the filing, can leave the buyer exposed.

Deposit supports the buyer's rights under the Specific Performance framework. It is not registration of ownership. The title remains in the registered owner's name until the transfer is completed.

What changed again in 2026

In February 2026, the Department announced a three-month compliance period running from 16 February to 16 May 2026 before activating administrative fines. The published seller fines for a missing or out-of-time search certificate vary with the sale price and reach €10,000 in the highest band.

Stamp duty is a separate point. Cyprus repealed stamp duty for documents signed from 1 January 2026. A document signed by at least one party before that date may remain within the previous stamp-duty regime. Repeal of stamp duty did not remove Land Registry filing requirements, VAT, transfer fees or other transaction costs.

What a buyer should ask for before signing

  • The current title deed or parent-title information.

  • A Land Registry search certificate timed for the proposed signature date.

  • The draft sale contract and any Form A, Form B or Form C documents.

  • Planning and building permits, approved plans and available completion certificates.

  • A clear schedule of the reservation, deposit, staged payments and completion balance.

  • Written confirmation of how any mortgage, memo or prior contract will be dealt with.

  • The seller's or developer's company and authority documents where relevant.

  • A cost schedule covering VAT, transfer fees, filing costs and legal disbursements.

For related reading, see our guide to Cyprus title deeds, the common legal pitfalls in Cyprus property purchases and our separate explanation of assignment agreements.

Frequently asked questions

Does Law 132(I)/2023 guarantee that I will receive a title deed?

No. The law adds safeguards and a mortgage-release mechanism, but the actual result depends on the title, mortgage, permits, contract, payments and compliance by the parties. The file still needs independent review.

How recent must the search certificate be?

The Department states that it must be dated within five working days of the contract signature date, before or after, and attached to the contract.

Can a sale contract be deposited if the property is mortgaged?

Yes, but the mortgage position and the use of Form A or Form C matter. The buyer should understand which mechanism is being used, where the money will be paid and how the release will be documented.

Does Form C give the same protection as Form A?

No. Form C confirms that the buyer wishes to deposit without Form A. It should not be signed as a routine shortcut.

Does depositing the contract make the buyer the registered owner?

No. Deposit protects contractual rights under the statutory framework. Ownership changes when the transfer is completed and registered.

Official sources

General information only. Last reviewed 1 August 2026. A Cyprus property opinion requires the actual title, searches, permits, contract, mortgage documents, parties and payment structure.
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