Transparency and Security in Cyprus Property Sales 

In the ever-evolving landscape of real estate transactions within Cyprus, a significant milestone was reached with the enactment of Law 132(I)/2023 in December 2023. This pivotal legislation introduces comprehensive amendments to the Sale of Immovable Property (Specific Performance) Law 81(I)/2011, aimed at bolstering the regulatory framework governing the sale of immovable properties, particularly those encumbered by existing mortgages marking a decisive step towards enhancing the transparency and security of property transactions.

Objective and Scope of the Legislation

The primary objective of Law 132(I)/2023 is to refine the procedures associated with the sale of immovable properties, ensuring a robust mechanism for the protection of both sellers and purchasers, especially in scenarios involving properties with existing mortgage liabilities. This legislation emerges as a crucial tool in clarifying and streamlining the process, thereby fostering a safer and more transparent real estate market.

Key Provisions and Requirements

One of the hallmark features of the recent amendments is the introduction of mandatory procedures for the registration or submission of sale contracts at the Land Registry. Notably, the amendment mandates the submission of a written declaration, co-signed by the Bank and/or Lending Company along with the seller, and duly acknowledged by the purchaser. This requirement is articulated through specified Forms A and B, which are integral to the procedural framework. Alternatively, the contract may be supported by a written declaration from the purchaser following Form C of Law 132(I)/2023.

These forms serve a dual purpose: firstly, they ensure the Bank’s commitment to release the property from the mortgage and/or any other encumbrances upon receiving the agreed amount. Secondly, they safeguard the rights of purchasers by ensuring their awareness of the existing mortgage, thereby promoting transparency and informed decision-making.

Furthermore, the amendment imposes a critical obligation on parties to obtain a search certificate from the Land Registry specific to the property in question. This certificate must be an integral part of the sale contract, with the issuance of the search certificate required to be no more than five (5) working days prior to the contract’s signature date. This provision aims to provide current and accurate information about the property, further enhancing the security and reliability of property transactions.

Compliance and Penalties

Law 132(I)/2023 underscores the importance of strict compliance with its terms. Non-adherence to the stipulated procedures by either the lender or the seller triggers significant consequences. Specifically, it stipulates the imposition of an administrative fine up to €10,000 for sellers and up to €100,000 for Banks. These penalties are indicative of the legislation’s stringent approach towards ensuring compliance, reflecting the seriousness with which the Cyprus legal framework views the integrity of property transactions.


Law 132(I)/2023 represents a paradigm shift in the regulation of property sales in Cyprus, especially concerning properties with existing mortgages. By enhancing the procedural clarity and safeguarding the interests of all parties involved, the amendment is poised to significantly contribute to the stability and security of the real estate market. For purchasers and sellers alike, the legislation provides a structured and transparent framework, ensuring that property transactions are conducted with the highest degree of integrity and due diligence. As such, it is a commendable step towards addressing the complexities and challenges inherent in the sale of immovable property, setting a new standard for regulatory oversight in the real estate sector.

Our Cyprus Law Firm is fully equipped to navigate the complexities introduced by this new amendment. Our team offers a broad spectrum of legal services tailored to meet the needs of individuals and entities engaged in property transactions. From ensuring compliance with the new regulatory requirements to representing clients in negotiations and legal disputes, our expertise in Cyprus & EU law positions us uniquely to provide unparalleled legal support.

Whether you are a seller, purchaser, or a financial institution, Chambers & Co is committed to delivering expert legal advice and representation. We aim to facilitate smooth and secure property transactions, safeguarding your interests under the new legal framework. For professional legal assistance that aligns with the latest developments in property law, Chambers & Co remains your trusted partner.