Cyprus Consults on Overhaul of Reserve Prices for Forced Sales of Property

The Department of Lands and Surveys opened public consultation on 7 August 2026 on a bill that would rewrite how the reserve price is set for a forced sale of immovable property, the mechanism behind most mortgage enforcement and co-ownership sale applications in Cyprus. Comments close on 8 September 2026. Nothing has been enacted yet, but the direction of the reform is clear and practitioners handling enforcement or partition applications should take note now.

What the bill changes

The bill, titled the Immovable Property (Restriction of Sales) (Amendment) (No. 1) Law of 2026, would amend the Immovable Property (Restriction of Sales) Law of 2002, Law 82(I)/2002.

Three changes stand out.

First, the valuation of the property and the setting of the reserve price would move from the District Lands Officer to private valuers registered with the Cyprus Scientific and Technical Chamber (ETEK). The applicant instructs the valuer directly. A fee scale for these valuations is to be approved jointly by the Director of the Department and the Cyprus Association of Property Valuers, reviewed every five years.

Second, where a sale fails and a further attempt takes place within five years of the first unsuccessful sale, the reserve price is automatically reduced by fifteen percent. This replaces the current wording, which leaves the timing and the size of any reduction to be worked out case by case. Once five years have passed from the date of the valuation, the District Lands Officer may require a fresh valuation and a new reserve price before any further sale.

Third, for applications made under Article 28 of the Immovable Property (Tenure, Registration and Valuation) Law, Cap. 224, over property that cannot be divided among co-owners, the bill introduces a hard stop. Once five years have passed since the valuation and the property has been put up for auction at least twice without success, the application is set aside. The applicant is notified and asked whether a fresh application is wanted. A fresh application is only accepted if the property still cannot be divided under Article 27 of Cap. 224, and it can again be sent for a new valuation and reserve price under the new rules.

Once five years have passed and two auctions have failed, the application is set aside, not merely adjourned.

The five-year clock does not run where the property's value has been affected by a substantial change in its physical or legal condition, or by any other cause affecting its value. A transitional provision preserves reserve prices already set under the current Articles 4 and 5 where the forced sale has not yet been completed, treating them as set under the new Article 5.

What this means in practice

For mortgagees and judgment creditors currently pursuing or planning a forced sale, the practical effect is a faster and more predictable path to a second or third auction, since the fifteen percent step is fixed rather than negotiated with the Department each time. For co-owners applying to sell an undivided property, the reform introduces a real deadline: two failed auctions within the valuation's five-year life will end the application, and starting again means satisfying the Department afresh that the property still cannot be partitioned.

Firms currently instructing valuations through the District Lands Officer should expect to instruct a private ETEK-registered valuer instead once the bill passes, and to build the valuer's fee, set under the forthcoming scale, into the cost of enforcement. Because the consultation is still open, clients with live enforcement files have a window to make representations on the transitional treatment of pending applications before the rules are settled.

Sources

• Public consultation, Immovable Property (Restriction of Sales) (Amendment) Law of 2026, Department of Lands and Surveys
• Draft bill amending the Immovable Property (Restriction of Sales) Law of 2002, Law 82(I)/2002, Department of Lands and Surveys

This article is provided for general information purposes only and does not constitute legal advice.

Klitos Platis

Advocate, Partner

Kleanthous & Platis LLC, Nicosia · Published 19 August 2026