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Cypriot Court Ruling Clamps Down On Unlawful Property Occupation After Lease Termination

Ownership of a property is a core component of legal rights in any jurisdiction. When possession is granted with the property owner’s consent—such as through leasing or another contractual arrangement—it is deemed lawful. However, once that consent ceases, as in the case of a terminated lease, the former tenant becomes an unlawful possessor. Continuing to occupy the property without permission constitutes a trespass, infringing on the owner’s fundamental right to enjoy and manage their asset.

Issues In The Cypriot Legal Landscape

In Cyprus, this issue has acquired concerning dimensions as property owners, including those of commercial and other types of real estate, face extended periods of illegal occupancy by former tenants. These individuals exploit delays in the resolution of civil cases, effectively retaining possession of the property without any payment. This practice not only abuses legal procedures but also violates the property owner’s rights, preventing them from utilizing their asset while allowing the unlawful possessor to benefit without obligation.

The Statutory Framework Under Article 281

Article 281(1)(a) of the Penal Code, Chapter 154, clearly states: “Whoever, without the consent of the person in whose name the land is registered, occupies or enters the land, is guilty of a criminal offense and is liable to imprisonment for up to five years or to a monetary penalty of up to ten thousand euros, or both.” This provision emphasizes that the possession of land is not merely a civil issue but also one that is subject to criminal sanctions when undertaken without consent. Its deterrent intent reinforces the protection of property rights while preserving the balance between owners and possessors.

Appellate Court Landmark Decision

In the case examined under Criminal Appeal No. 94/2022, the Appellate Court provided a definitive interpretation regarding unlawful possession following the termination of a contractual relationship. The court overturned the initial acquittal and condemned the respondent for unlawfully occupying property registered in another’s name without consent. The decision highlighted a case in Larneka where the respondent had occupied a commercial property since October 1, 2019, despite the contractual relationship having ended, nullifying any basis for continued possession.

The court concluded that the lower court erred in finding no evidence of abandoned consent. It was made clear that a past lease relationship does not imply ongoing consent after termination. With the cessation of the contractual agreement, the property owner’s consent is automatically revoked, rendering any further possession illegal. The intent of Article 281 is to prevent abusive retention of property at the expense of the legal title holder, framing unauthorized occupation as a criminal offense and reinforcing the property right.

Implications And Future Outlook

This precedent-setting decision marks a significant step in addressing the longstanding issue of unlawful property occupation by former tenants in Cyprus. By interpreting Article 281 of the Penal Code stringently, the court has affirmed that property ownership is both a civil right and a criminally protected interest. The ruling is expected to deter further abuses and ensure that legal avenues remain effective in restoring owners’ rights swiftly.

Conclusion

The Appellate Court’s decision, handed down on October 31, 2025, is a pivotal measure in combating illegal property occupation in Cyprus. By demonstrating that extended possession without consent cannot be justified on the grounds of previous lease agreements or pending civil disputes, the ruling reinforces legal safeguards and instills renewed public confidence in the judicial system.

doValue Cyprus Strengthens Market Leadership With New Astrobank Portfolio

Expanding Market Influence

Loan and real estate management firm doValue Cyprus has significantly reinforced its domestic presence in non-performing loan servicing by acquiring a new portfolio from Astrobank Public Company Limited. This development follows Astrobank’s recent transition, marked by the transfer of key operations to Alpha Bank Cyprus Limited and the subsequent surrender of its banking licence.

Strategic Acquisition And Swift Execution

Finalized on November 3, 2025, the agreement underscores a decisive strategic shift as doValue Cyprus assumes management of Astrobank’s remaining portfolio. The immediate commencement of portfolio management is a testament to the firm’s commitment to delivering specialized, resilient solutions within the non-performing loan market.

Expertise Driving Market Growth

Chief Executive Officer Varnavas Kourounas emphasized that the latest portfolio acquisition not only expands the firm’s operational footprint but also validates its credibility and deep expertise in the competitive Cypriot financial sector. The strategic move is aligned with the broader growth ambitions of the doValue Group.

Broader Market Implications

Operating as part of the international doValue Group—the largest independent loan and real estate management organization in Southern Europe—doValue Cyprus is well-positioned to leverage its newly expanded portfolio. With approximately €136 billion in assets under management, the group maintains a dominant presence across Italy, Greece, Spain, Portugal, and Cyprus. Moreover, its subsidiary, Altamira Real Estate, runs Cyprus’ largest real estate platform, managing extensive property portfolios alongside the island’s most comprehensive sales network.

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