We would like to inform you about the latest amendments inSale of Immovable Property (Specific Performance) Law of 2011 that could significantly impact your property transactions. As of the December 12, 2023 the amending law132(I)/2023 which came into effect to offer enhanced protection for buyers in real estate deals

Here’s what you need to know:

• Updated Documentation Requirements: A new requirement has been introduced for sale contracts, mandating that the seller include a certificate of search from the relevant Land Registry as an essential part of the contract. This certificate must be issued within five business days before signing the contract in order to guarantee that all information is up-to-date and accurate. Additionally, in cases where there is a registered mortgaged or a contract of sale, the relevant Land Registry will only accept the registration of a new contract if it accompanied by a written declaration from each mortgage lender and seller confirming that the mortgage will be released upon payment of 95% of the purchase price against the mortgage debt. Alternatively, the purchaser may submit a declaration, as outlined in the Law, allowing the Land Registry to proceed with registering the new contract of sale without requiring the Mortgage Lender Declaration.

• Improved Buyer Protection and efficiency: All payments made by the purchaser to the seller under the sale contract must be directed to the bank account specified in the Mortgage Lender Declaration. Once the mortgage lender receives the full amount outlined in the declaration, they are required to issue a statement in accordance with the law and release the mortgage. If the lender fails to do so, the Director of the Land Registry will release the mortgage without the lender’s involvement.