Buyers Protection

Buyer Protection

To protect the interests of the buyer from wrongdoings by the seller (and vice versa) the Cyprus government has passed the so-called Specific Performance law. The law gives the buyer the 'right to own' the property once both buyer and seller have fulfilled their obligations to each other as defined in the Sale Agreement (sale contract) and the Title Deed has been issued.

This means that a properly drawn up Sales Contract is very important. The Contract of Sale requires that the buyer and the seller fulfil their obligations to each other as described therein. The seller should be protected from any breaches of contract that the buyer may make (e.g. if the buyer is late in making a payment, then he may have to pay a penalty interest payment) and similarly, the buyer, should be protected from any breaches of contract that the seller may make (e.g. the buyer should be able to claim compensation if the developer fails to deliver the property by the contractually agreed date).

But apart from any protection that a properly drawn up sales contract gives, the Specific Performance law enhances this protection (once all the contractual obligations of the buyer in the sales contract has been honoured) as follows:

IF, the buyer’s lawyer deposits the contract of sale with the District Lands’ Office within two months of signing it, then this creates a 'claim' against the property that the buyer is buying. This claim prevents the seller from changing his mind about selling it to the buyer or selling it again to someone else. So provided that the seller is able to transfer ownership, then within six months of being notified by the buyer he has to transfer ownership to the buyer’s name. If the seller refuses or delays the buyer can apply for a Court Order instructing the District Lands' Office to carry out the transfer of ownership immediately.