Property Titles: Modification of the Property Transfer and Mortgage Law

The modification of the Real Estate Transfer and Mortgage Law will resolve the problems arising from the lack of Title Deed to the purchasers who have paid for the acquired property and complied with all the necessary obligations, due to the developer’s debts. Precisely, the new legislation authorizes, under certain conditions, the Property Registry to exempt, eliminate, transmit and cancel mortgages and/or other encumbrances. In addition, the provisions of Law No. 139(1)/2015, also known as the ‘hidden mortgage’ law, includes all sales made before the end of 2014.

The Property Transfer and Mortgage Law, N. 139(1)/2015, came into force on September 4, 2015. The provisions of this particular regulation are intended to protect ‘trapped buyers’ releasing the purchased Property of the financial obligations of the developers. . In case you are one of those buyers who has not obtained a Property Title due to the fault of the developer or financial problems. As a result, it is recommended to submit an Application to the Land Registry. Keep in mind that the specific regulation applies to contracts (purchase and sale agreements) that have been submitted to the Land Registry until December 31, 2014.

At this point I would like to point out that ‘trapped buyers’ must provide the necessary evidence to obtain a Title Deed. I will then explain the necessary steps and procedures a ‘trapped buyer’ must follow to have their Application reviewed and then obtain a Title Deed.

Eligible applications:

It should be noted that those who have the right to submit a Request to the Property Registry are the ‘trapped buyer’, the seller (in our case the developer), the mortgage lender and the borrower based on the loan agreement with the buyer.

Pursuant to the provisions of sections 44IH and 44KST, the Director shall review the submitted Application in accordance with the following conditions:

1. The purchase amount has been paid in full.

2. There is a registered title deed to the purchased property.

In the event that a Title Deed to the property has not been issued, the Director shall request the buyer by written notice to pay the balance of the purchase price into a special provisional account, within 30 days from the date of receipt. of this notification.

Awaiting requests:

I would like to point out that following the provisions of the law, an application remains pending until the purchase price has not been paid in full, and a separate Title Deed has not been issued on the object of the contract before the date of the Application.

Objections:

Within 45 days, the following people have the right to file an objection:

• Buyer

• Seller

• Mortgage

• Any other person for whose benefit a lien and/or prohibition has been registered

Obligation to produce proof:

The Director may request any interested person to submit evidence within a specified period at any stage of the process. The person who submits the application is obliged to provide evidence within the period indicated in the respective notice. The Director may impose a fine not exceeding €10,000 on a person other than the applicant who does not provide evidence and the payment of additional fees that shall not exceed €100 for each day that the infringement continues.

Application Review:

The Application is reviewed regardless of whether or not Title Deeds have been issued. I would like to point out that ‘trapped buyers’ are obligated to pay the full amount of the property purchased, or part of it, up to the date they submit their Application.

If the necessary conditions are met, then the Director of the Department of Lands and Surveys informs all interested parties, in our case the buyer, the seller, the mortgagee and the lender, that 45 days after the notification the transfer of the property to the ‘trapped buyer’ will be held.

At this point, I would like to highlight that interested parties may file a new opposition according to the following criteria:

1. The ‘trapped buyer’ obligations to the seller have not been met.

2. The contract between the ‘trapped buyer’ and the seller is invalid or has been terminated following a court order.