Notes on the title deed prohibiting voluntary transfer

[AnaStasy]

Hello!
I really like one apartment I want to buy. However, the title deed has a note that its voluntary transfer or mortgage is prohibited because the building took some extra green areas.
I checked with the Land Registery and they confirmed the title deed cannot be transferred at this time. They said, however, I still can buy the property.
I am confused about how this can be done. I understand it in a way that we will have a contract for sale and I will pay the money, but the propery will still be owned by the current owner (since I cannot transfer the title to my name). Is it correct?
If so, what exactly does this contract give to me? As I understand, the current owner will still be the owner until the title is transferred, right?
So, technically, he can dispute the contract, or maybe he has some wife/husband/children who can then claim the property. What will happen in this case? Will the law be on their side since the title deed is not on my name?
Also, I know that they started trying to solve the issue about 2 years ago and the suggested solution is to buy out these green areas. However, all owners (about 30 apartments) will need to agree and pay. As far as I understood, they did not want to pay the suggested amount and were hoping to solve it for less money or for free. But at this time, it looks like they will still need to pay if they want the clean title deed.
The current owner is suggesting to reserve some amount of money from the property price until the issue is solved but I am not sure how possible is the resolution.
Maybe you have some experience with such cases? What could be the probability of such an issue to be potentially solved?
Thank you very much for any direction and/or response!

[Nigel Howarth]

Hello AnaStasy and welcome to the forum.

Advice: DO NOT BUY THE APARTMENT.

When it comes to property in Cyprus, buying and owning are two different things.

Although you can buy a property and pay for it in full, you do not own it until its Title Deed is registered/transferred in your name.

You will not be able to own the apartment until the issue with the green area, which is preventing Title being transferred, is resolved.

However, if you do buy the apartment, you can leave it in your will, but you cannot use it as collateral for a loan,

Regards,

[AnaStasy]

Hello Nigel! Thank you very much for you such a fast response and advice! It is very helpful!
I am actually ok to not being able to use it as a collateral for some time (until the issue is resolved).
I am more worried that during this period of time the current owner of the title deed or their family can dispute the contract. Or let's say additional family member can claim the ownership of the apartment. Or (hopefully not) but if something happens to the owner, the apartment will be inherited by their family since the title deed will be still on their name.
As I understand, it is all possible scenarios until I get the title deed on my name (even regardless of the contract of sale and fulfillement of payment).
Is my understanding correct?

[Nigel Howarth]

Hi AnaStasy

There's no need to worry, as soon as your contract is deposited at the Land Registry you're OK.

But you still need your independent lawyer to check that there are no outstanding claims on the apartment, such as mortgages, unpaid communal fees, etc.

You should also be aware that a property without a Title Deed costs less than a property with a Title Deed - you're in a good position to negotiate.

Also, it may be worth investigating if you could pay the price of buying out a percentage of the green area that relates to your apartment to get a Title Deed.

Regards,

[AnaStasy]

Thank you so much! I appreciate your help!