On 17.12.2020, the Parliament adopted the amendment of the Transfer and Mortgage of Property (Amending) (No. 2) Law of 2020 (the "Law") with 31 votes in favour and 17 against.
The law has been amended with the addition of article 61 which stipulates that the application of the provisions of Part VIA of the Law regarding the sale of mortgaged property, is temporarily suspended and more specifically until 31 March 2021 in cases were the mortgage property it is the debtor's primary residence or the debtor's businesses dwelling.
The amendment clarifies that the primary residence means the residence used by the owner and/or members of his family, for a period of more than six (6) months per year, the estimated value of which does not exceed ?350,000.
The amendment also clarifies that businesses dwelling, means a property used by Small and Medium-sized Enterprises which have no more than ten (10) employees and with an annual turnover not exceeding ?2.000.000.
The said amendment followed the decision of the Association of Cyprus Banks to suspend auctions of main residence until the end of March 2021.The said suspension is not valid for mortgaged properties on which a sale agreement has been achieved.
The amended Law was published on 29/12/2020 at Cyprus Government Gazette.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
