Buying Property in Cyprus
This article will explain the five most important steps for buying property in Cyprus. You will learn what to expect and what to look out for when purchasing a home in Cyprus.
Before setting out on a real estate investment and buying process, you will need to hire an agent, lawyer, inspector, and surveyor.
Hiring an Estate Agent in Cyprus
Most agents in Cyprus speak English, so you will have no problem finding a bilingual agent. It is essential to focus on what type of property features you want and what kind of budget you have to work with when buying property in Cyprus. It is a good idea to be prepared not only in your finances but also in your mindset, going into a search.
When looking for a Cyprus real estate agent, make sure that the agent is licensed and a member of the International Real Estate Federation (FIABCI) or the Cyprus Real Estate Agents Association (CREAA). The agent should also be registered in the Council of Cyprus Real Estate Agents. Simply ask the agent for their registration number so you can confirm that they are a registered real estate agent. They should not mind doing so.
After you have hired an agent and found a location to focus your search, see as many different homes as you can so you will get a good sense of the areas you wish to live in. If renovations are possible for you, ask your agent for their suggestions and guesstimates for renovation costs. The right agent will know the most reputable tradespeople in the area. Also, a good agent will be able to answer questions such as:
Does the home have a consistent supply of electricity?
Are there liens or debts on the property?
Are there any restrictions for renting the property out?
Are water shortages frequent in the summer? If so, how is that handled?
Hire a Lawyer
Make sure the lawyer is a member of the Cyprus Bar Association. A good lawyer will save you thousands of dollars and help you avoid pitfalls in the buying process.
Buying Property in Cyprus: Survey
Step 1. Put in a Bid
When the buyer accepts your bid, the seller’s agent will remove the property from the market. You’ll need to sign a reservation agreement that shows your commitment to buy. Also, you’ll need to put down a small deposit. Consult with your lawyer about the deposit to make sure you know under what circumstances you’ll repay the deposit’s repayment should the deal fall through. Most of the time, the deposit is held in a neutral or escrow account.
Step2. Paperwork & Title Research
Your lawyer will study all of the legal paperwork and perform searches about ownership and title deeds. This is very important because there have been problems in Cyprus real estate due to fraudulent title schemes. Your lawyer will research the title deed to make sure that the seller truly owns the property and to make sure there are no outstanding liens or debts against the property. The lawyer will also make sure that the right planning permissions are obtained from local authorities.
Step 3. Sales Contract
Your lawyer will draft a stamped and registered sales contract and deposit it with the Lands Office. The sales contract will show that the home is protected until a separate title deed is issued, and your lawyer should ensure that all parties approve it. The Specific Performance Law protects you, the buyer before the deeds are formalized. This prevents the seller from selling the home to someone else. During this time, you will be asked to transfer a portion of the property price. Make sure that you protect your budget from currency fluctuations because if you do not, you may be dismayed to learn that the property costs you far more once the transaction is complete. Ask your lawyer how you can protect yourself against adverse exchange rate changes.
Step 4. Submit a Request for a Property Acquisition to The Council of Ministers of Cyprus
You are getting closer to the finish line of buying property in Cyprus. Your lawyer will issue a request for property acquisition to the Council of Ministers for Cyprus. This is like a background check to make sure there are no illegalities associated with you. Your lawyer will prepare an application for the reduced VAT rate (5%). Once this application is approved, you will transfer the remaining balance of the final sales price. Anticipate on waiting a month for this step to be complete.
Step 5. Obtain Title Deeds from Regional Land Registry
This is signing day and the day you receive the keys to your Cyprus home. In this final step, you will obtain the Title Deeds from the Regional Land Chamber in the presence of you (buyer) and the seller. Ensure you receive a receipt showing that the registration fee and registration of property tax have been paid. You will need to pay the Title Deeds transfer fee at this time. After this, the property is all yours!
Find out about Real Estate Projects in Larnaca
Buying Property in Cyprus: Featured Projects
If you seek to invest in real estate in Cyprus, the projects listed below are of the most outstanding quality. They are located in the booming areas of Larnaca, Cyprus:
If you are interested in real estate and property investment in Cyprus, the island’s current economic standing makes it an attractive landscape. More and more investors are choosing Cyprus, and so should you.
If you have any questions regarding real estate and property investment in Cyprus, don’t hesitate to contact us at email@example.com, call us at +357 24 816246, or Book a 20-Minutes Online Meeting.