BUYING PROPERTY IN CYPRUS
Property News Article by Demetris Demetriades – Barrister at Law Gray’s Inn & Head of Conveyancing and Immigration Department at Andreas Demetriades and Co LLC
Cyprus has always been a popular destination for foreigners looking to invest in property. The meaningful history, culture and warm people of the Island, coupled with excellent food and good weather, has, and continues to be, the recipe for success! In this short guide, we aim to help foreign and local buyers on their quest for their dream property.
CHOOSE THE RIGHT PROPERTY.
Have you set your budget or decided on a location yet? Research is imperative for making an informed decision. View as many different properties as possible to ensure you find the one most suited to your needs. Do not rush, in order to make a fast decision.
EMPLOY A LAWYER.
Employ a lawyer licensed by the Cyprus Bar Association before venturing out without the right support. Your legal advisor will guide you through the legal process and help you avoid any potential pitfalls.
WHAT IS INVOLVED IN THE BUYING PROCESS?
You may be asked to pay a Reservation Deposit once you find the right property and your offer is accepted. The purpose is to take the property off the market and prevent others from snatching it from you. This should always be accompanied by a Reservation Agreement detailing the agreement terms and, confirming that you will reserve the property, usually for about one month.
SIX USEFUL GUIDELINES:
TO ENSURE THE PURCHASE OF YOUR PROPERTY IS A STRESS & HASSLE-FREE PROCESS:
- During this period, your lawyer will continue collecting all the necessary information relating to the legal status of the property and move forward with all the required Land Registry and Planning Department searches.
- Be aware that finished properties are purchased as seen, therefore, should you wish to have the property surveyed, you will need to appoint a surveyor and obtain a Report prior to the signing of the Contract of Sale.
- Provided no issues arise from the legal searches, your lawyer will then go on to draft the Contract of Sale, which must be approved by all parties in the transaction.
- The Contract of Sale will need to be stamped and registered at the Land Registry for specific performance and, at the same time, an approximate 20% – 30% of the agreed purchase price is paid.
- If you are a non-EU National, you will need to submit an application to the local District Office to obtain their consent for the purchase of the property. This is a simple process whereby consent is granted speedily.
- The final stage involves having the Title Deeds to the property transferred into your name at the Land Registry. This is also when the full and remaining payment of the purchase price is settled. Once complete, a fee of 1.5% – 4% is also charged for the Transfer of the Title Deeds into your name.
Immediately thereafter, you should apply to the water and electricity authorities to transfer the utilities into your name.
For more guidance on buying a property in Cyprus, please call our offices on +357 26 811 668 or email ddlaw@logos.cy.net. By following these simple steps, you ensure that the purchase of your property remains a safe and stress-free process!
