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Mortgage On A Property In Cyprus

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Information on Cyprus property mortgages

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Law 9/65

A mortgage means a voluntary encumbrance of a property to secure payment of an existing, future or contingent liability. The "mortgagor or mortgage debtor" is an owner of immovable property who creates a mortgage thereon whereas the person in whose favour the mortgage is created is called "mortgagee or mortgage creditor".

Requirements for declaration of mortgage

Form N.271 (Contract and Declaration of Mortgage) is to be completed in three copies. Where the mortgage is to be declared at a Lands Office other than the Office of the District where the property is situated one extra copy of the form needs to be completed. All copies must be typed and signed by the mortgagor, the mortgagee and any guarantors. More than one property, which belongs to one or more persons, or more properties either belonging to the same and/or different persons may be included in the contract and declaration of mortgage.

Form N.312 (one copy of this form needs to be completed).

Any additional documents in the same number as the copies of Form N.271.

Both Form N.271 and any additional documents are subject to a stamp duty. One form/ document shall be stamped as the original and all the others as copies.

Certificates of registration (titles) of the properties under mortgage are also attached thereon.

Acceptance and registration of mortgage

All documents are to be deposited at any District Lands Office, accepting the mortgage. Both the mortgagee and the mortgagor must appear in person or by agent before the Lands Officer accepting the mortgage and produce their personal identity card. Where agents act on behalf of the parties, an instrument of agency must be produced.

Mortgages are accepted only if the properties to be mortgaged are free from encumbrances and if the mortgagor is not under any prohibition with respect to the mortgaging property included in the mortgage, unless this is expressly provided by the Law (see provision in paragraph below).

It is possible to constitute an unlimited number of subsequent mortgages provided that each subsequent mortgage shall include all properties included in the immediately previous mortgage and no other property.

In the absence of any impediment, and after the parties certify their signatures in all documents, the competent Lands Officer shall confirm the identity of the persons appearing before him/her and read the declaration, whereas the mortgagor is required to pay the relevant fees. The competent Lands Officer shall thereafter sign the documents, affix the Office's stamp thereon and return them to the interested parties. The original of the document is to be delivered to the mortgagee whereas the mortgagor shall be given a copy thereof. A third copy remains with the Department of Lands & Surveys.

The fees payable to the Department are calculated on the amount of the mortgage debt and are paid on the same day in cash or with a bank cheque "good for payment", or a credit card.

Source Department Of Land And Surveys