A foreclosure reserve price is a legal minimum based on a statutory valuation, not a promise that a buyer will receive a particular discount. Review the auction notice, property records and payment requirements before bidding.
This guide concerns the mortgage-creditor procedure in Part VIA of Law 9/1965, checked on 3 October 2026. It does not describe every form of forced sale. The DLS Forced Sales Section also handles court-related sales, undivided-share sales and other specified matters.
What happens before an auction?
| Provision | Verified condition or procedure |
|---|---|
| Section 44B | The whole mortgage debt must have become payable, with default continuing for at least 120 days; other applicable suspensions remain relevant |
| Section 44C(1), Type I | A debt statement accompanies a demand allowing at least 45 days for payment; for a licensed institution, Type I is sent at least 30 days after Type Theta, where that notice is required |
| Section 44C(2), Type IA | Notice of intended auction is served at least 45 days before the stated sale date and time |
| Section 44D, Type IB | The debtor has a ten-day window to identify an appointed valuer; Type IB may precede, follow or coincide with Type IA |
| Section 44Z | The creditor may choose a physical or electronic auction; statutory publication and service rules apply |
Type Theta has statutory exceptions: section 44B(2) does not require it where the creditor has obtained a court judgment against the mortgage debtor or a Part VI sale application has already been lodged. Do not treat the table as an unconditional sequence or calculate a universal four-to-six-month completion time from it.
Section 44D provides for independent valuations and a third-valuer procedure where the two initial valuations differ by at least 25% of the lower valuation. The statutory market value used for the reserve is not automatically a current asking price or a buyer’s independent estimate.
How are reserve prices set?
Under section 44E, the initial attempt is by auction, with a reserve not lower than 80% of the market value determined under section 44D. The property cannot be sold below the applicable reserve.
- For six months after completion of the first auction, the reserve floor remains 80%, regardless of the subsequent sale method.
- For the next three months, the floor is 50%.
- Section 44IA permits the creditor, after six months without a sale, to buy at the statutory market value using the latest valuation or a fresh valuation procedure. Continued sale attempts under sections 44Z/44H retain a reserve not lower than 50%.
These floors are not an automatic reduction on a particular date or evidence of an average market discount. Read the reserve stated in the actual notice.
Where can I find electronic auctions?
ACB E-Auctions operates an electronic auction system through registered auction officers. The administrator describes itself as a wholly owned subsidiary of the Association of Cyprus Banks. Its platform permits online participation without physical presence.
Use the platform’s auction listings, participation instructions and FAQ. Confirm the creditor and auction officer from the specific listing rather than assuming every bank-branded portfolio has the same seller or procedure.
Who may buy?
Section 44H(5) prohibits sales to specified connected people. These include holders of more than 2% of the licensed institution’s share capital and specified connected persons, representatives, spouses, parents and descendants up to the third degree; officers, directors and employees of the mortgage creditor; and officers, directors, representatives or relatives up to the fourth degree of the auctioneer. Ask a lawyer to check the complete prohibition against your circumstances.
Separate Cap. 109 acquisition rules may apply to a buyer within the foreigner definition; EU and EEA citizens are excluded from that definition, while a foreign-controlled Cyprus company can fall within it. Incorporating a company is not an automatic permission workaround. See the foreign-buyer guide.
How do I participate?
The following steps summarise ACB’s own platform procedure, rather than every physical or electronic sale:
- Register. Users with a Cypriot identification number registered in the Population Register or Registrar of Companies use CY Login. Users with a non-Cypriot identification number select an auction and upload supporting identity information for officer approval. Account activation uses SMS. These routes are based on identification records, not simply citizenship or residence.
- Apply for the chosen auction. Accept the terms and upload the applicable supporting documents. The officer checks the application. Obtain property information and professional advice before committing funds.
- Pay the posted guarantee. The standard window is no earlier than five working days before the auction and no later than 15:00 two business days before it. A debit/credit-card commitment can instead be made by 07:00 on the preceding working day. The separate supporting-document deadline remains relevant.
- Use an accepted payment method. ACB lists wire transfer, a banker’s draft delivered by arrangement, or a card commitment. The funds/card must be the bidder’s, and the administrator must receive the full guarantee, including coverage of transfer costs. Attach the payment receipt as instructed.
- Bid after approval. Access to the bidding screen requires an additional mobile security code. At the end of bidding, the displayed ranking is final; the officer issues the auction report within the applicable time limits.
Check the notice and officer instructions for the specific property’s guarantee and all deadlines. The participation guarantee is distinct from the accepted purchase price and additional transaction costs.
What happens after bidding?
ACB’s FAQ says the highest bidder must contact the mortgage creditor promptly. Completion entails paying the accepted price and relevant registration charges, less the guarantee already paid. Its procedure must be completed within 20 days from the auction date. Non-compliance can lead to forfeiture of the guarantee, cancellation and liability for a loss in a later sale. ACB transfers the guarantee to the creditor and does not itself perform the property transfer.
If unsuccessful, or if the auction is not held or is cancelled, ACB says the guarantee is returned. Wire-transfer refunds are reduced by transfer costs and may take 2–5 business days to reach the account. Card commitments are released; banker’s drafts are collected by arrangement. This is not a promise that every refund arrives immediately or without deductions.
Section 44IB requires the creditor to apply to the competent District Lands Office for title transfer within 30 days after completion of the sale, with the statutory documents. That is a separate procedural deadline from ACB’s bidder payment/completion requirement. Ask for a written transaction-specific tax and fee calculation; do not assume an ordinary private-sale transfer-fee discount applies automatically.
What should buyers and borrowers check?
Buyers should ask a lawyer to examine the title, encumbrances, notices, access and occupation status, and costs. Section 44Theta has specific rules for earlier and later encumbrances; an auction label does not substitute for checking the records. Ask for a property inspection where possible and budget from actual quotations.
For borrowers, section 44C(3) allows an application to the District Court to set aside the intended-sale notice within 45 days of receiving Type IA, on the statutory grounds. Those grounds and related mediation, insolvency and housing-scheme conditions need case-specific assessment. This is not an unconditional right to stop every auction or a complete statement of every available remedy. Seek advice promptly using the actual notices and dates.
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