Property In Cyprus
Buying property in Cyprus is a bit more risky than buying in the UK, but there are laws in place that will ensure a smooth transaction if they are followed.
Of course, you should have a property in mind before taking a step toward purchase. Once you have selected the property and have the financing in place, it is time to see a lawyer who is not associated with anyone in the organization from which you are purchasing the property. The lawyer has certain due diligence that must be done before advising a buyer to proceed.
This includes:
Probably the biggest mistake made by buyers in Cyprus, is to sign the developer’s standard contract without taking legal advice. The lawyer will check the title to ensure that it is free of any encumbrances that would create a problem for the buyer taking a clear title. The lawyer will also make certain that all property transfer laws are followed. If you start the purchase process without a lwayer, start over with a lwayer. There are many laws and rules in place for your protection, but only a lawyer will know these.
It is essential that a purchaser deal with a registered agent only. A registered agent by law carries an insurance policy to protect their client from any wrongful actions. A registered agent follows a national code of conduct – only registered agents can assure you of this code. It is illegal in Cyprus for anyone who is not licensed and registered to operate as an estate agent; a buyer should request evidence of registration when enquiring about property.
Legal estate agents are members the Cyprus Real Estate Agents Association, CREAA. Buying a property with a title deed is always preferable as it is a clear-cut transaction. However, buying without a deed, or even from a plan is fine, and is most often the method of purchase. However, the deal must be done properly and with the advice of a lawyer. There is also an advantage without a title deed as it is often cheaper than buying a completed and ready-for-immediate-delivery property; also, stage payments apply. Remember, 9 out of 10 Estate Agents in Cyprus are not licensed.
The only drawback is that the actual deed may not be available for years. The Land Registry figures released in October 2008 showed that 29,949 non-Cypriot property buyers were waiting for their Title Deeds. Only 4,400 property Title Deeds were actually transferred to non-Cypriot property buyers during the previous four years.
So if their past performance is anything to go by, it will take the Land Registry nearly 24 YEARS to transfer Title Deeds to the 29,949 who are still waiting. The holder of the Title can do about anything with the property they want to do, whilst the actual owner can do nothing , or very little, with the property.
