The Cyprus Immovable Property Law (Chapter 224) prohibits owners of property listed on a title deed from transferring or mortgageing the property if it is issued with an “unauthorised building works” certificate. The presence of such a notation on the title deed effectively deprives the property of its value on the open market.
A certificate of unauthorized construction indicates serious violations of urban planning regulations. These violations often arise due to poor quality construction or unfinished work, such as insufficiently high balcony railings or the absence of fire protection systems, which can pose a safety risk. Less significant deficiencies, such as the absence of a “green zone”, do not pose a threat, but still limit the ability to fully use the property.
Under the law, “blighted” properties cannot be transferred or mortgaged, but can be willed or gifted to close relatives. This change was a positive step in the fight against unscrupulous sellers, preventing them from dumping their worthless and potentially dangerous property on unsuspecting buyers, while still leaving the seller responsible for correcting the violations.
In 2021, the Cyprus government passed a temporary law (54(I)/2021) that allowed owners, most often developers, to temporarily transfer or mortgage properties despite the existence of unauthorized building certificates. This law was in force from 14 April to 31 December 2021, and almost 13,000 transactions were carried out during the amnesty period.
The government’s motives for the temporary amnesty remain unknown, but there are examples of unscrupulous developers managing to sell “unsuitable” properties to unsuspecting buyers during this period.
To check the status of the property, you can refer to the title deed of the property, which is in Greek. The document will contain a note if the property has a “Certificate of Unauthorized Construction Works”, with a reference to the certificate number. If the property has a certificate of unauthorized construction work, you can contact the local planning department to determine the nature and level of the violation.
There are several options for eliminating violations:
- Some property owners band together and jointly pay for the work needed to correct the violations.
- Property owners can band together and file a lawsuit against the developer.
- Acquisition of bank-repossessed properties – if the bank has already confiscated one or more properties, it is possible to obtain the right to use them.
These measures will help owners restore the legal value of their property, reducing risks in the future.
