BUYERS WITHOUT TITLES
According to Law No 139(I)/15 which was enacted recently, the purchasers of properties have the right to apply to the Land Registry for their properties to be transferred to them free of the seller’s mortgages or other encumbrances. The Law aims to protect the buyers by releasing the property from the developer's obligations to their lenders, therefore, it gives the discretion to the Director of Lands and Surveys Department to exempt, eliminate, transfer and cancel mortgages and or other encumbrances applicable on the property.
The Law is applicable on contracts that have been submitted at the Lands Registry up until 31st December 2014. An application for transfer may be submitted by the buyer, the seller, the mortgagee or the lender and has to be accompanied by the necessary supporting evidence. Any pending procedure under Companies Act and Bankruptcy Law is suspended until the full examination of the application which is submitted under the Law.
If all criteria are fulfilled the Director of Lands and Surveys notifies all interested parties, i.e. the buyer, the seller, the mortgagee and the lender that 45 days after the service of the notification the transfer of the property to the buyer will take place.
If none of the involved parties raises an objection to the application the Director will exempt, eliminate and cancel mortgages and or other encumbrances and will transfer the Property to the buyer provided the transfer fee, immovable property tax and local levies are settled.
The relevant application has to be submitted to the Land Registry with the following documents:
1) Application Form which is signed by the applicants or their representative.
2) Copies of passports.
3) Evidence that the Contract of Sale was deposited with the Land Registry before 31/12/14.
4) Evidence that the purchase price had been paid to the Vendor. The evidence may include:
a) Receipts issued by the seller. The original receipts will be needed for inspection.
b) Receipts for bank transfers to the seller’s bank account.
c) Written confirmation from the seller.
d) Affidavit from the buyer confirming payment to the Vendor.