A memo is a court judgment registered at the Land Registry that makes the property security for the debt. It lasts ten years and follows the property if it is sold.
Klitos Platis, advocate
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You took out a search certificate for your property, or for a property you want to buy, and found a “memo” registered against it. What does it mean, and what can you do about it?
A memo is the registration of a court judgment. It does not on its own stop a sale, but a sale does not remove it either: it follows the property until the debt is paid or the registration expires. Our property lawyers can check exactly what is registered and how it can be removed.
What a memo is
A creditor with a court judgment in their favour may register it at the District Land Office and make the debtor’s property security for payment of the judgment debt. That is section 53 of the Civil Procedure Law, Cap. 6, and the registration is what the courts and practice call a “memo”.
It applies to property registered in the debtor’s name in which the debtor is beneficially interested.
It is registered by lodging an official copy of the judgment with a dated, signed note describing the property (section 54).
A memo is not a mortgage you signed: it is a judgment against you, registered on your property.
How long it lasts
A registration remains in force, as a rule, for ten years from the date it was first made (section 55). It then lapses, unless the creditor obtains an extension, what is usually called renewing the memo.
An extension is granted only by court order, for up to ten years each time (section 56). The conditions are strict:
- the application is made at least one month before the registration expires;
- the order must be made before it expires;
- the Land Registry is given notice of the application;
- the court must be satisfied that the judgment was not collusive and that the extension will not prejudice the debtor or other judgment creditors.
If the memo on your title is old, the date of the registration and of any extension is worth checking.
What it means for a sale or a purchase
While the registration is in force, the property stands as security for the debt, ahead of the debtor’s debts that had not already been charged on it, and the court may order it sold to satisfy the judgment (section 57).
That applies whatever transfer or mortgage was made after the registration. Whoever bought or took a mortgage over a property with a memo is left only with a claim for damages against the person who transferred or mortgaged it to them.
Before you buy, ask for a recent search certificate and agree in writing how every memo is paid off from the price.
The reverse also holds: a memo registered after a declaration of transfer or mortgage had already been made does not affect the interest transferred, provided the fees were paid on the day of the declaration (section 58).
How it is removed
The cleanest route is payment. When the registered judgment is satisfied, the creditor gives the Land Registry written notice of payment within thirty days, so that the registration is withdrawn (section 59).
If they do not, the law makes them liable for any damage the registration causes the debtor or the debtor’s other creditors by remaining. Keep proof of payment and ask the creditor in writing to give the notice.
Where there are several memos on the same property and one creditor sells it, what is left after that creditor’s debt and the costs goes to the other registered creditors in the order of their registrations (section 62). Our article on appealing a bank’s auction notice looks at how memo creditors are affected when the bank sells the property.
What this means in practice
- Ask for a recent search certificate and see who registered the memo, when, and for which judgment.
- Check whether the registration has expired or whether an extension order exists.
- On a sale, agree in writing that the memo is paid off from the price and that the creditor will notify the Land Registry of payment.
- If you have paid and the memo has not been withdrawn, ask the creditor in writing to give the notice.
A memo does not leave with a sale. It leaves with payment, with expiry, or with the creditor’s notice to the Land Registry.
Questions we are asked
Can I sell a property that has a memo on it?
The law does not forbid the transfer, but the memo follows it: the court may order the property sold even after the transfer, and the buyer has only a claim for damages against the seller (section 57 of Cap. 6). So the safe course is to agree that the memo is paid off from the price before or at the transfer.
How long does a memo last, and can it be renewed?
As a rule ten years from the first registration (section 55). It is renewed, or in the words of the law extended, only by court order, for up to ten years each time, and the application must be made at least one month before it expires (section 56).
I have paid the debt. Why is the memo still on the title?
The creditor must give the Land Registry written notice of payment within thirty days (section 59). If they do not, they are liable for the damage the registration causes by staying there. Ask them in writing to give the notice.
What should my first message include?
The property and its registration number if you have it, who registered the memo and for how much, and whether you plan to sell or to buy. If you have a search certificate, say so.
Can you act for me if I am abroad?
Yes. We act regularly for clients who live outside Cyprus, by email, telephone and video call, and a great deal can be carried out at a distance where the law allows it, including through a power of attorney drafted for the specific transaction.
Sources
Need advice on your own matter?
Your first message costs nothing: within one working day we tell you whether we can help and what it would cost.
klitos@kleanthousplatis.com
Kleanthous & Platis LLC Registered law company Cyprus Bar Association HE 441973
Further reading
This article is for general information only and does not constitute legal advice. Laws and their application can change, and individual circumstances differ. For advice on your own matter, contact Klitos Platis at klitos@kleanthousplatis.com.
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