A recent court case in Cyprus has highlighted the risks buyers may face when purchasing real estate in Cyprus. According to a report by Phileleftheros newspaper, a buyer purchased an apartment only to later discover that it had already been sold to someone else. The case highlights the importance of legal due diligence in real estate transactions and the potential risks buyers are faced with.  before purchasing a property in Cyprus.

Case Summary: Buying a Sold Property & the Role of the Land Registry

As reported, the buyer purchased the apartment after making inquiries with the Land Registry, believing that the apartment was available for sale. He later discovered that the property had already been sold to another person, leaving him in a difficult legal position. Feeling misled, he took legal action against the Land Registry, arguing that he should have been informed about the prior transaction. The case examined the responsibilities of the Land Registry as towards parties to real estate transactions.

The District Court, which was later confirmed by the Supreme Court, found that no legislative provision required the Land Registry to inform the buyer of the existence of prior sales agreements in the records of the Land Registry and noted that the Buyer failed to exercise the option to request information from the Land Registry regarding the property before submitting the disputed sale contract. The court found no obligation on the part of the Land Registry to provide such information without using the formal procedure available.

Additionally, according to the Supreme Court, the Land Registry had no right to refuse the submission of a sales agreement that met the conditions for filing under the relevant legislation (Sale of Property (Specific Performance) Law) and as such, the Land Registry was required to accept it.

The Risks of Relying on Verbal Assurances & Communications

In Cyprus, many property buyers rely on verbal assurances and communication with the Land Registry when transacting in real estate.

As this case demonstrates, relying solely on informal communication can have serious legal and financial consequences. It is ultimately the buyer’s responsibility to ensure that a property is free from encumbrances, disputes, or prior sales before completing a transaction.

Why Legal Due Diligence is Essential

To protect against unforeseen complications, buyers should undertake a comprehensive legal due diligence process before purchasing any property. This includes:

• Conducting a Title Search – Ensuring that the seller has a clear and undisputed legal title.
• Checking for Encumbrances – Verifying whether the property is subject to mortgages, liens, or other claims.
• Confirming the Sales History – Reviewing past transactions to ensure no prior sale agreements exist.
• Drafting a Legally Binding Agreement – Ensuring that all terms of the sale are properly documented and enforceable.

While verbal communication with the Land Registry may be useful, this cannot replace a thorough due diligence and legal support in a proposed transaction.

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