Property law in Cyprus is derived from European common law, and is divided into personal and real property. Property rights are rights over things enforceable against other persons. By contrast, contractual rights are rights enforceable against particular persons. So it's ideal to mention that the real estate bubble on the island is heavily influenced by the lax law in relation to property.
As long as Cyprus home prices continue to increase at an alarming rate, there is no reason for the lenders to worry about the security for the loan they approved and funded. And in this aspect, Property law in Cyprus is not different from the rest of Europe.
Cyprus Property law is characterized by a great deal of historical continuity and technical terminology. The basic distinction in common law systems is between real property (land) and personal property (chattels). The division of land and chattels has been criticized as being not satisfactory as a basis for categorizing the principles of property law since it concentrates attention not on the proprietary interests themselves but on the objects of those interests.
The real estate market after the haircut of 2013 is finally stabilizing. The prices are rising and due to the initiatives the bank is now offering, it is more efficient to proceed with a purchase of a house or building a new house.
For law firms that copes with property law please click here.