The case originated from a lawsuit filed by a citizen against the Department of Lands and Surveys (the “Land Registry”). The plaintiff claimed that, upon filing a purchase agreement for an apartment, the Land Registry had failed to inform him—as it allegedly should have—that the property had already been sold to a third party. The District Court, which initially examined the case, ruled that negligence on the part of the Land Registry had not been proven. The District Court further stated that no legislative provision imposes a duty on the Land Registry to inform buyers about prior sale contracts. Additionally, the buyer had not utilized the available legal mechanisms to request information about the property from the Land Registry before filing the sale contract.
The Court of Appeal upheld the District Court’s decision, emphasizing that no law, constitutional provision, or other regulation imposes a statutory duty on the Land Registry to inform buyers or their representatives about the existence of prior sale contracts upon the filing of a new contract. The Court of Appeal also noted that negligence could not be established in the acceptance of the sale contract, as the Land Registry had no authority to refuse the filing of a contract requested by the buyer, provided that the conditions for filing under the Sale of Land (Specific Performance) Law CAP 232 (prior to its repeal) were met.
Regarding the Supreme Court’s decision to reject the buyer’s application to file legal questions, the Court ruled that the application essentially sought to reopen the case to revisit issues on which the Supreme Court had no grounds to intervene. The Court found no reason to overturn the Court of Appeal’s decision, as the buyer’s disagreement with the ruling did not constitute a valid basis for further legal review.
Why Appointing a Lawyer is Crucial
This case underscores the importance of appointing a lawyer to assist with property transactions. Here are several reasons why legal assistance is essential:
- Due Diligence: Lawyers conduct thorough due diligence to ensure that the property is free from any legal or financial liabilities. They obtain and review certificates of encumbrances, ensuring that buyers are fully informed about the property’s status.
- Compliance with Regulations: Legal professionals are well-versed in the latest regulations and requirements. For example, under the Sale of Immovable Property (Specific Performance) Law N. 132(I)/2023, it is now mandatory to provide a certificate of encumbrances, dated no more than five days before or after the execution of a sale agreement. The Land Registry will accept the lodgement of the sale contract in both cases.
- Negotiation and Drafting: Lawyers negotiate terms and draft contracts that protect their clients’ interests. They ensure that all clauses are clear and enforceable, reducing the risk of future disputes.
- Risk Mitigation: By identifying potential issues early, lawyers help mitigate risks. They provide strategic advice on how to address any problems that may arise during the transaction process.
- Representation in Disputes: If a dispute does occur, having a lawyer ensures that clients have professional representation to advocate on their behalf. They can navigate the legal system and work towards a favourable resolution.
Conclusion
The recent case before the Supreme Court of Cyprus serves as a stark reminder of the complexities involved in property transactions. It underscores the critical role of legal professionals in ensuring that transactions are conducted smoothly and in compliance with the applicable laws. Engaging a lawyer not only provides peace of mind but also safeguards clients’ interests, ensuring that they are fully protected throughout the process.
In today’s evolving legal landscape, where regulations are continually updated, expert legal assistance is more important than ever. Whether one is buying or selling property, a lawyer’s expertise can make all the difference in achieving a successful and legally sound transaction.
The content of this article is valid as at the date of its first publication. It is intended to provide a general guide to the subject matter and does not constitute legal advice. We recommend that you seek professional advice on your specific matter before acting on any information provided. For further information or advice, please contact Stephanos Ayiomamitis, Partner at our Limassol Office, Tel +357 25363685 or email stephanos.ayiomamitis@kyprianou.com.