A court ruling has ended the Land Registry’s practice of informing property buyers, when they file a sale contract, about real burdens affecting a property.
Following the new situation created by the ruling, Attorney-General Giorgos Savvides clarified in a legal opinion that the Land Registry is not legally required to inform buyers, when they file a sale contract, that real burdens exist on the property.
According to the legal opinion, the Land Registry’s practice will be stopped because informing buyers after a sale contract has been concluded is considered late, while the practice also causes significant delays in the filing process.
Under the Sale of Immovable Property (Specific Performance) Law, for sale contracts concluded and filed after December 12, 2023, the seller must include as an integral part of the contract a search certificate for the property covered by the agreement.
The certificate must not have been issued more than five working days before the date the contract was concluded.
Buyer protection rules
Despite the Attorney-General’s opinion, which reduces the information given to a property buyer when a sale contract is filed, the above provision was included in the law to strengthen buyer protection.
The 2023 legislation strengthens protection by introducing a procedure allowing buyers, where a mortgage has already been filed, to pay the sale price into the seller’s bank account with the mortgage lender and have the property transferred into the buyer’s name.
This can be done regardless of real burdens or prohibitions affecting the property or its owner, provided those follow the contract in order of priority.
According to information sent by the Land Registry to affected bodies, from May 18, when the transitional period expires, any omission will lead to an administrative fine on the seller, to be set according to the sale price.
“The information regarding the legal status of a property can be secured in advance, after following the procedure provided for in Article 51A of the Immovable Property (Tenure, Registration and Valuation) Law,” the Land Registry said.
It also urged interested parties to obtain the required information before entering into any contract.
Applications change
The Land Registry has also revised the sale contract application to speed up procedures and reduce the time needed to accept and file contracts.
Separate applications have also been prepared for the filing of exchange and land-for-development contracts. They have been uploaded to the department’s online portal and can be submitted electronically.
The new forms provide a clearer and standardised structure for the contracting parties and property details.
They also introduce a requirement to state, by page and paragraph of the contract, its essential information, aiming to make it easier to identify key details and avoid errors and omissions.
The Land Registry clarified that the land-for-development form provides for a separate reference to the provider and the developer, as well as the relevant consideration, strengthening the handling of more complex cases.
The practice of listing real burdens in detail is also being abolished, while the relevant information will be secured through an application for a search certificate.
The changes are expected to improve the time needed to accept and process applications, with the aim of better serving the public.