Encumbrances and Memos in the Filing of Sale Agreements in Cyprus

REAL ESTATE LEGISLATIVE CHANGE | ΝΟΜΟΘΕΤΙΚΗ ΑΛΛΑΓΗ ΣΤΗΝ ΑΓΟΡΑ ΑΚΙΝΗΤΩΝ

As of 18 May 2026, an important amendment to the procedure for depositing Sale Agreements with the Department of Lands and Surveys in Cyprus will come into effect. This change is expected to directly affect buyers, sellers, lawyers, and real estate professionals, making proper due diligence before signing a Sale Agreement more important than ever.

What Is Changing?

Until now, after a Sale Agreement was deposited with the Land Registry, the purchaser would be notified of any existing matters affecting the property, such as:

  • mortgages
  • encumbrances
  • court memos
  • prohibitions
  • other charges or restrictions registered against the property

From 18/05/2026, this practice will be abolished.

This means that the Land Registry will no longer notify purchasers of any existing encumbrances, memos, mortgages, or other charges after the filing of the Sale Agreement.

New Obligation Before Signing

Responsibility for carrying out the necessary checks will now be transferred to the contracting parties before the Sale Agreement is signed. This makes the pre-contract stage even more important for all parties involved in a property transaction.

Seller’s Obligation

The seller will be required to provide the purchaser with a recent Search Certificate, which must:

  • be issued no more than 5 working days before signing
  • show all encumbrances, mortgages, memos, and other charges registered against the property
  • be available before the Sale Agreement is signed

This ensures that the buyer is aware of any registered burdens or restrictions affecting the property before proceeding with the transaction.

Buyer and Legal Representative’s Responsibility

Buyers and their legal representatives must now ensure that the necessary legal and Land Registry due diligence is carried out before signing the Sale Agreement.

This should be done through an official search pursuant to Article 51A, allowing the buyer to obtain a clear picture of the legal status of the property before committing to the purchase.

Administrative Penalties

If a Sale Agreement is filed without the required Search Certificate, administrative penalties may be imposed.

The amount of the fine may depend on the value of the transaction, making compliance with the new procedure essential for both sellers and professionals involved in the process.

Why Is This Change Important?

This amendment introduces a more proactive approach to property due diligence in Cyprus. Instead of relying on post-filing notifications from the Land Registry, all relevant checks must now be completed before the agreement is signed.

The new procedure is important because it:

  • strengthens transparency in property transactions
  • makes pre-contract due diligence essential
  • increases responsibility for buyers, sellers, and legal representatives
  • reduces the risk of future legal disputes or complications
  • helps purchasers make more informed decisions before signing

Final Thoughts

The new procedure highlights the importance of carrying out proper checks before entering into any property transaction in Cyprus. Buyers should always request confirmation of the property’s legal status, while sellers must ensure they provide the required documentation within the correct timeframe.

At Euroresidence, we always recommend that buyers and sellers work closely with qualified professionals to ensure that every property transaction is handled correctly, transparently, and in accordance with the latest legal requirements.

For more information or assistance with buying or selling property in Cyprus, contact our team today.

Source: DLS Portal