The Limassol & Paphos District Courts that ruled the trapped buyers’ law as unconstitutional will have enormous repercussions for individuals who have been tricked into buying property on land in Cyprus that developers had previously sold to the bank.
Thousands of property owners in Cyprus who bought properties in good faith will be negatively affected. The so called trapped buyer’s legislation was introduced in 2015 as part of the Troika’s bailout agreement with the objective to transfer properties to purchasers who had rightfully fulfilled their obligations to the vendor, but did not receive its Title Deed.
A Title Deed is a legal document confirming ownership rights of a property. Until such time as a Title Deed holds the name of its purchaser, they do not legally own the property.
‘Trapped buying’ occurrs when a developer had mortgaged the land on which he was building and an encumbrance was registered against the property in question and the developer was unable to continue paying this mortgage along with other debts.