Transfer of property in the name of the «enclaved buyer»

On September 2015, the House of Representatives enacted the Immovable Property (Transfer and Mortgage) (Amendment) Law 139(I)/2015 which entered into force on 4 September 2015 with its publication in the Official Gazette of the Republic. The new Law, provides new provisions for the transfer of the property to the purchasers who are enclaved, in case where they are unable and/or the vendor fails to transfer the property in their name in case the property is subject to mortgage and/or encumbrance.

Requirements for the Application

In accordance with the new provisions of the Law, all the following conditions must be fulfilled for the transfer of the title deed in the name of the purchaser.

  1. For a person be eligible to apply for the blocked title deed application the contract of sale and/or the contract of assignment must have been deposited in the Land Registry up until December 31, 2014. Although, in case the contract has not been deposited, the applicant can apply to the Court for the issuance of an order to deposit the contract under the Sale of Property (Specific Performance) Law no. 81(I)/2011.
  2. Furthermore, the purchasers must have completed their contractual obligations to the vendor in order to request for a blocked title deed. This means that they made the full payment of the purchase price, and in case they did not proceed with the entire payment, the Land Registry will require the payment to allow the application to be filed.
  3. There must be a registered title deed of the property.
  4. The purchase has paid the taxes of the property.

Who is eligible to Apply?

As provided by the Law, the following persons have the right to submit an application:

  1. The purchaser under the deposited contract
  2. The vendor under the deposited contract
  3. The Director of the Department of Lands and Surveys
  4. The Assignee and/or the Assignor under the deposited Contract of Assignment
  5. The mortgagee under the mortgage contract
  6. The lender under the loan agreement with the purchaser

Transfer of the title deed in the name of the purchaser 

In case where all the aforementioned conditions are satisfied, and the application has been submitted, the Land Registry will send to all the interest parties a notice of the transfer of the property in the name of the enclaved purchaser giving the right of 45 days to submit an objection and/or application for the transfer of an encumbrance.

After the passing of the period of 45 days, and there is appeal and/or objection are examined and a decision will be issued.

Once the above procedure is completed, a notice will be sent to the purchaser as well as to the vendor calling upon them within sixty (60) days from the date of service of the notice, to transfer the property in the name of the enclaved purchaser. Finally, the purchaser will be called upon within the above period, to pay the fees for the transfer of property to his name.

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