The recent decision by the Cyprus Parliament to amend the “Transfer and Mortgage Law” represents a major step towards simplifying the mortgage liquidation process and eliminating the problem of “trapped” buyers. The new law, proposed by MP Nikis Georgiou , aims to establish clearer and more effective deadlines for the liquidation of a mortgage after the debt has been fully repaid.
According to the new initiative, in the event of full payment of the debt or termination of the obligation related to the mortgage, the pledger (hereinafter referred to as the borrower) is obliged to take the necessary steps to remove the mortgage from the register within 30 days. This decision is intended to eliminate the problem when, despite the repayment of the debt, the mortgage continues to remain on the property, which often leads to unpleasant consequences for the owners.
Until now, this situation remained quite common, and many borrowers did not even know that the mortgage was still registered to their property, creating problems when selling or transferring real estate. Now, given the changes in the law, the borrower is obliged to take action to liquidate the mortgage on time, which should significantly simplify the process and reduce the number of lawsuits and administrative problems for citizens.
If the borrower fails to fulfil the obligation to remove the mortgage from the register within the time limit established by law, he will be obliged to compensate for all damages that he will incur due to improper performance of his obligations. However , if the borrower can prove that the damage occurred after he took steps to liquidate the mortgage, his liability will be relieved.
One of the significant innovations in the bill is the introduction of an electronic method for the mortgage liquidation process. This will simplify and speed up the procedure, making it more accessible and transparent for all participants in the process.
The law also specifies that the borrower will not be required to perform actions to liquidate the mortgage if he agrees in writing to maintain the mortgage. In the event that the borrower decides to revoke his consent, he will be required to liquidate the mortgage within 30 days after receiving written notice of such decision.
