Suspension of foreclosures involving primary residences or businesses premises or agricultural fields until end of July 2021
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The Transfer and Mortgage of Property Law (Amending) Law of 2021 (Ν. 98(I)/2021) (the Law) was published in the government Gazette on 07.05.2021 in an effort to provide financial assistance and relief to borrowers who have been significantly affected by the COVID-19 pandemic and consequently, are unable to comply with their repayment obligations. The Law expands the existing legislation both in terms of content as well as duration.
The Transfer and Mortgage of Property Law N. 9/1965 (the Law of 1965) has been amended, through the ratification of the Law, with the addition of Article 62. Article 62 of the Law of 1965, as recently amended, provides that the provisions of Part VIA of the Law of 1965 regarding the sale of mortgaged property, will be suspended until 31 July 2021 in the event the mortgaged property falls within one of the three (3) categories listed below:
the mortgaged property is the debtor's primary residence; or
the mortgaged property comprises of the business premises of the debtor; or
the mortgaged property is an agricultural field.
In respect of the three (3) categories of mortgaged properties that fall within the auspices of the moratorium implemented through the Law, the following clarifications have been made:
A primary residence must comprise of a residence used by the owner and/or the owner’s family members, for a period of more than six (6) months per year, with its estimated value not exceeding €500,000.
The business premises of the debtor comprise of a mortgaged 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.
An agricultural field comprises of a plot located in an agricultural or farming zone or in any other zone in which an agricultural activity can be carried out, with its estimated value not exceeding €250,000.
For more information please visit our website microsite on Banking and Finance or contact Ms.Margarita Avraam at This email address is being protected from spambots. You need JavaScript enabled to view it..
