Government moves closer to resolving issue of 'trapped' property owners
January 23, 2025

Government moves closer to resolving issue of 'trapped' property owners

The government is working on solving the issue of "trapped buyers" in Cyprus—property owners who paid for their properties but can't obtain title deeds due to outstanding mortgages. There are 9,497 cases of trapped buyers, with 5,417 still waiting for title deeds. This problem occurred after a court ruling in June found part of a 2015 law illegal, as it allowed title deeds to be transferred from mortgaged properties, which would harm banks financially. As a result, the land registry stopped reviewing trapped buyers' applications.

The interior ministry is currently making changes to the law to fix this and both the government and banks have shown willingness to find a solution. The goal is to create a law that protects honest buyers and ensures the issue doesn't result in more legal challenges. The goal is to clearly define honesty to avoid problems later and create a law that is fair to everyone.