Following the amendments made to Law 132(I)/2023, new requirements for Real Estate Sale and Purchase Agreements apply to those signed after December 12, 2023.

One of the key changes is that an Official Search Certificate from the Land Registry must now be attached to the Real Estate Sale and Purchase Agreement. This certificate must contain the property’s history, including details of any Sale and Purchase Agreements (SPA) and existing mortgages. It must be issued no more than 5 days before the signing of the Real Estate Sale and Purchase Agreement to ensure that the buyer is fully informed about any encumbrances or restrictions on the property.

Additionally, new rules require the submission of Form A or Form C when filing the Real Estate Sale and Purchase Agreement with the District Land Registry.

• Form A: Signed by the Mortgage Lender, Seller, and Buyer, with all signatures to be certified. This form confirms that the payment for the property has been made to the Seller, and that all encumbrances will be removed with the help of the Mortgage Lender’s Type B certificate. If the Mortgage Lender fails to issue the Type B certificate after receiving payment, the Director of the Land Registry may impose an administrative fine following a court decision.
• Form C: Signed only by the Buyer, whose signature must be certified by a certified officer. This form confirms that the Buyer agrees to file the Real Estate Sale and Purchase Agreement with the Land Registry and acknowledges any existing encumbrances on the property.

These changes were introduced following a Supreme Court ruling declaring certain provisions of the law unconstitutional, specifically concerning "trapped buyers" (enclaved buyers). The amendments aim to better protect new buyers from such issues in the future.

If you have any questions regarding real estate transactions in Cyprus or need legal advice, feel free to contact our office. We are ready to provide qualified assistance and advice on all aspects of real estate in Cyprus.

Author: Georgia Nicolaou (Lawyer)