ARTICLES
We are proud that DILINOS & ASSOCIATES LLC has a leading role in Cyprus when it comes to cases of Acquisition and Requisition of properties.
Acquisition:
Acquisition in essence is the forced or rather mandatory purchase of a property or part of it by the state. Consent of the owner is not required, as public interests overweigh personal rights. This is the reason acquisitions occur only when there are public interests at stake. For example, private real estate is necessary for the construction of a school or for the opening of a new road.
Compulsory Acquisition Procedure:
In practice, the acquisition of a property order begins first begins with the publication of the acquisition by the Acquiring Authority in the Official Gazette of the Republic. Affected owners are entitled to file an objection within one (1) month from the date of publication of the Notification or service of notice to them, but such objections are sadly rarely successful. After the objections are examined, and if no objection is successful, the Acquisition order is published in the Official Gazette of the Republic within 12 months and a written offer of compensation must be sent to the affected property owners within 14 months, from the date of the Notification of the acquisition. Otherwise, if neither of the above occurs, the acquisition order recedes.
Requisition:
Requisition is the compulsory rental of a property, for public interest purposes. The maximum duration that such an order may last is 3 years (Article 23.8 of the Constitution) unless the order is for military defence purposes, for example, an army training camp, which can be for a period of more than 3 years. Property owners affected from requisition orders do not lose their right to the land as legally speaking it still belongs to them.
The rights of the owner in Cyprus in case of acquisition of his property:
The owner of a property affected by an acquisition order in Cyprus has the following rights:
- Appeal to the Administrative Court. The deadline for registering such an appeal is 75 days from the day a property became aware of the Order.
- To accept the offer of the Acquiring Authority without prejudice. In such a case the acquisition property is transferred in the name of the acquiring Authority as soon as the amount of compensation has been paid to the owner, but the owner retains his full right to apply to the Court to increase the amount of compensation paid to him, within 75 days of day the amount of compensation was paid.
- To not accept the offer of the Acquiring Authority and to apply to the Court for a greater amount of compensation. The final amount to be awarded by the Court bears 3% from the day of the Notification of the Acquisition until the day of payment. The Acquiring Authority may also apply to the Court to determine the amount of compensation. The amount received for an acquisition of a property is tax-free.
- In case the acquired property is not used for the purpose of public benefit for which it has been acquired within a period of 3 years, the owner or rather the former owner of the property is entitled to apply to the Administrative Court and demand the return of his property. Hence, the property will be re-registered to the owner’s name, and the compensation the owner received for the acquisition is returned, without interest.