Pursuant to an amendment to the Transfer and Mortgage of Property Law (the TMP Law), on 10 November 2022, the Cyprus Parliament introduced a suspension to foreclosure processes until 31 January 2023. The amending legislation amends section 62 of the TMP Law and stipulates that the application of the provisions of Part VIA of the Transfer and Mortgage of Property Law regarding the sale of mortgaged properties is temporarily suspended until 31st of January 2023.
The suspension affects three types of real estate. Firstly, it applies to primary residences of debtors, the value of which does not exceed the total value of €350.000. Secondly, it applies to all commercial properties mortgaged by debtors whose annual turnover does not exceed a total of €750.000. Lastly, the suspension applies to agricultural land whose estimated value does not exceed €100.000.
It is notable that the Cyprus Parliament also considered a proposal to establish a tribunal of special jurisdiction, which would be mandated to hear and adjudicate on foreclosure matters. This proposal did not accumulate the necessary majority and was rejected.
The members of the Cyprus Parliament who advanced the proposal suggested that the suspension of foreclosure of mortgaged properties was merited due to the ongoing and intensifying impact of the war in Ukraine repercussions from the COVID-19 pandemic, which brought into play both financial and social predicaments to vulnerable debtors. At the same time, the proposal seems to be related to the forthcoming general elections in January 2023.