Undoubtedly, the real estate market in Cyprus is thriving, and property transfers—whether by donation or sale—are on the rise among locals, EU nationals, and third-country residents. In Cyprus, real estate ownership has long been closely associated with wealth and social stability.
This article aims to provide a clear and practical overview of the most common questions surrounding the transfer of immovable property in Cyprus. It outlines the procedure, the legal effect of a transfer, and the available legal remedies in case of disputes.
Legal Framework
The primary piece of legislation governing property transfers is the Immovable Property (Transfer and Mortgage) Law of 1965 (Law 9/1965), which has undergone several amendments, including the much-discussed 2019 revisions concerning foreclosures.
Required Documents for Transfer
To proceed with a property transfer, the Form N270 from the Department of Lands and Surveys must be properly completed and submitted along with the following:
- Title Deed (Certificate of Registration of Immovable Property)
- Tax Clearance Certificate for immovable property (requires completion of Form N313)
- Municipal or Community Authority Clearance
- Sewerage Board Clearance Certificate
- Water Board Clearance Certificate (pursuant to the 2019 amendment to the Transfer and Mortgage Law)
- Capital Gains Tax payment receipt (only applicable in the case of sale—Form ΤΦ401)
If the transfer is made by power of attorney, under Article 10 of Law 9/65, duly signed, stamped, and certified power of attorney documents must also be submitted.
Encumbrances (e.g. Mortgages or MEMOs)
The property in question may be subject to encumbrances, such as a mortgage or memo. These typically pose a legal barrier to transfer, as Article 12 of Law 9/65 prohibits the transfer of encumbered property.
However, mortgages are an exception. According to Article 31 of the same law, the transfer may proceed provided that:
- The mortgage deed is submitted; and
- The beneficiary (buyer) signs a declaration acknowledging awareness of the existing mortgage.
This essentially demonstrates that the lender consents to the transfer and allows the property to remain mortgaged under the new ownership.
Ownership & Legal Title
Beyond the procedural requirements, it is essential that the transferor (seller/donor) is the registered legal owner of the property.
In Ayios Antronicos Development Co Ltd v. The Republic (1985) 3 CLR 2362, the court emphasized that Article 4 of Cap. 224 excludes the application of common law and equity principles. Therefore, the appellants’ claim that they acquired ownership via a sale contract was rejected—ownership is only acquired through registration.
Legal Effect of a Transfer
According to Article 20 of Law 9/65, upon submission of the transfer declaration, the transferee (beneficiary) is entitled to possess the property. Every transfer declaration includes an implied term that:
- The transferor has the right to transfer, and
- The transferee is entitled to enjoy the property without interference, unless otherwise agreed.
Article 19 defines the official date of transfer as the day the declaration is accepted, subject to:
- Payment of transfer fees, and
- Consent of the Director of the Department of Lands and Surveys, who exercises discretion under Articles 13 and 14.
If the Director does not consent, no legal right is created, as Article 40 explicitly provides that no real right is acquired unless registered in the District Land Registry.
Legal Remedies – Right of Appeal
Article 51 of the Law grants a right of appeal against decisions of the Land Registry Director in the context of property transfer proceedings.
The relevant procedural framework is provided by the 1956 Immovable Property Regulations. The following conditions must be met for an appeal to be valid:
- The appellant must be a party with a legitimate interest.
In Peyiotis v. Polemidis (1982) 1 CLR 442, the court clarified that “legitimate interest” should be interpreted similarly to the administrative law standard. - The contested decision or notice must be specifically provided for under Law 9/65.
- The appeal must be filed within 30 days from the date the decision or notice is served on the affected party.
This article is for informational purposes only and should not be considered legal advice.
Panayiotis G. Kyprianou
Lawyer
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