Third-party funding is uncommon in Cyprus. Opinions vary on whether such activities are permissible since this issue has not yet been put before the courts. The Cyprus courts could adopt similar principles to those of English law in relation to this matter in order to allow third-party funding in litigation or alternative dispute resolution proceedings. However, those seeking to adopt such a procedure must be careful since the Cyprus courts might be reluctant to allow it.
The Nicosia Rent Control Court recently ruled on the outstanding rent of a statutory tenant. The court held that a provision for the increase of rent provided for in a tenancy agreement does not apply once the tenancy is converted into a statutory tenancy. However, by interpreting the terms of the tenancy agreement (which had been terminated in this case), the court concluded that it had not provided for an increase in rent during the first tenancy period.
Law 8(I)/2018 came into force in July 2018, amending the Transfer and Mortgage of Immovable Property Law. The new legislation was applied for the first time in a recent Nicosia District Court case, which is considered to be of great importance in assessing how the courts will interpret the new law in future. The case concerned an auction procedure which had been initiated by the sending of the relevant documents and notices to the mortgagor, which filed a lawsuit against Hellenic Bank to suspend a foreclosure procedure.