Department of Lands and Surveys proposes legislative reforms for property requisition and forced sales

The Department of Lands and Surveys of Cyprus has launched public consultations on two new bills aimed at modernizing the legal framework governing property requisition for public utility and forced sales of real estate. Both bills are open for public feedback until September 8, 2026.

The bill concerning the requisition of property introduces clearer procedures for compensation payments, including electronic transfers to beneficiaries or the Accountant General in cases of refusal, death, or incapacity. It establishes a 3% interest rate on compensation, free from taxes and fees, and sets a 12-month deadline for filing court appeals. The scope is also expanded to cover archeological purposes.

The second bill, targeting the forced sale of property, aims to expedite procedures by allowing applicants to engage private valuers for setting market value and reserve prices. Key provisions include a mandatory 15% reduction in the reserve price if an initial auction fails and a cap of two auctions for undivided properties, after which the application is dismissed unless a re-evaluation of potential partition is conducted under existing regulations.