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Claims lodged against property in Cyprus

As part of the Title search (see Property Conveyancing) your lawyer may uncover that a mortgage has been lodged against the home you're thinking of buying.

But in addition to a mortgage, your lawyer may find other property claims, known as liens and liabilities burdening the property. The general name for these is "encumbrance" and they have the same effect as a mortgage inasmuch as they prevent you from owning the property until the claim has been removed by the person or company that lodged it.

E.g. Mortgaging a property results in the mortgage lender lodging a property claim as security for the payment of the debt. This gives the 'lien holder' the right to sell the property to satisfy the debt if it is not paid. On the other hand, a lien is removed when a mortgage is paid.

The most common types of property claims (encumbrances) are:

1. A mortgage.

2. A registration of a judgment made under the Civil Procedure Law (known as "memorandum" or memo).

3. An application for registration of immovable property in the debtor’s name.

4. A writ of sale of immovable property.

5. A registration of a bond relating to a loan from the Central Co-operative Bank.

6. A registration of a supplementary bond relating to a further loan from the Central Co-operative Bank.

7. A deposit of a contract of sale of immovable property (see Specific Performance).

8. A conditional attachment of property made by the Registrar of Cooperative Societies.

9. A judgment or order of any Court directing the alteration or cancellation of a registration of immovable property.

10. A publication of the apportionment of the cost of the construction of a street.

11. A charge on immovable property in respect of a registration of immovable property fee.

12. A judgment or order directing the sale of immovable property.

In addition to encumbrances, there may also be a "prohibition" lodged against the property. Prohibitions prevent the property owner from transferring or mortgaging any of his property and include:

1. An interim order of any Court restraining a defendant from parting with or charging his immovable property.

2. An order of any Court appointing a guardian of a prodigal.

3. Adjudication of any person as "mental patient".

4. An interim receiving order.

5. A receiving order or an order for the winding up of a company.

If your lawyer uncovers any property claims, liens, liabilities during the Title search, they should discuss them with you and appraise you of your options.