Nicosia, Cyprus. The Cyprus Banking Association said 36% of published electronic property auctions in Cyprus are suspended following agreements reached between borrowers and lenders. The association made the statement at a press conference presenting the e-auction electronic auction system.
Platform operator and legal framework
The association said the platform was developed and is managed by ACB E-Auctions Ltd, a company established in 2019 that is a 100% subsidiary of the Cyprus Banking Association. It said electronic auctions operate under a strict legal framework defining the procedure and the role of each party involved.
How the electronic auction process works
The association said the process is governed by the 2019 order of the Finance Ministry on the sale of mortgaged property through an electronic auction system, under which each auction is executed in a fully automated manner without human intervention. It added that to complete the transfer of a mortgaged property, the electronic auction report must be submitted to the Land Registry, and the property is transferred only to the successful bidder.
Shift from physical to online auctions
The association said physical auctions were discontinued in 2022 and that all auctions are now conducted exclusively online.
Users and public information
The association said the e-auction system has about 10,000 registered users from Cyprus and abroad and began operating on November 18, 2019. It said the system was designed to be fully compliant with the 2019 legal order regulating electronic auctions of mortgaged property.
Public outreach and bidding participation
The association said the platform has nearly 5,000 followers on Facebook and uses social media to inform the public about upcoming auctions and provide educational material. It added that when no agreement is reached between a borrower and a lender, it is to the benefit of the mortgaged borrower to attract many bidders, as increased participation tends to raise the final sale price.
What do you think increased bidder participation means for mortgaged borrowers when no agreement is reached with lenders?
