Cyprus Parliament Approves Lifting MEMOs on Assets in the Occupied Areas
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Cyprus Parliament unanimously passed the “Lifting of Encumbrance /Memo” on occupied assets.
On 8 February 2024, the Cyprus Parliament unanimously passed a law abolishing the right of banks and credit acquiring companies to register a memorandum of encumbrance (MEMO) on Greek-Cypriot properties located in the occupied areas.
The MEMO constitutes a tangible encumbrance on real estate in favor of a creditor (bank or credit acquiring company). Where a Court has issued a judgment in favor of the creditor ordering the judgment debtor to pay a specific / liquidated amount of money, the judgment creditor may register a charge with the Land Registry Department against any immovable property registered in the name of the debtor as security for the recovery of the judgment debt. A MEMO is registered through the submission of a certified copy of the Court judgment with the Land Registry Department where the judgement debtor’s properties are situated. A MEMO remains in force for ten (10) years from the date the judgment was first registered with the Land Registry Department and its duration may be prolonged by an order of the Court for a further period not exceeding (10) ten years each time. All MEMOS shall be recorded in a special book kept at each District Lands Office.
According to the new law, the registration of a court decision in the district land registry (MEMO) and the extension of an existing registration in the district land registry concerning a property situated in areas not controlled by the Republic are not possible.
This law gives the right to borrowers to apply for loans from the Central Agency of Equal Distribution of Burdens, which were unable to do so because of the MEMO registered on their properties.
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