Cyprus proposes overhaul of forced property sales and auctions

Cyprus is proposing a major overhaul of the regulations governing forced property sales and auctions. The draft legislation, prepared by the Department of Lands and Surveys, is currently undergoing public consultation until September 8.

Key changes include the introduction of private property valuers to determine market values and recommend reserve prices. This shift aims to reduce the workload of the Department of Lands and Surveys and accelerate the auction process. Only individuals or companies registered with the Cyprus Scientific and Technical Chamber (ETEK) would be permitted to perform these valuations.

To address unsuccessful auctions, the proposal introduces a fixed 15 percent reduction in the reserve price for subsequent sales held within five years of an initial failed auction. The new rules also aim to resolve long-standing issues regarding indivisible properties held by co-owners and provide greater certainty for creditors and property owners alike.