10 Jan Cyprus Property Purchase Legal Information
As soon as you find the perfect property for you, you need to visit the developer’s office to reserve the property that you have found and intent to purchase. Usually the reservation fee payable to the developers amounts to EURO 5.000-10.000 and sometimes exceeds that depending always on the property and the purchase price. In this articles we will explore the legal information on Cyprus property purchase.
Reservation of the Cyprus Property Purchase
If you are abroad on an exhibition and you are keen to reserve a property, you can always request from the exhibition stand to reserve the property for you subject to visiting Cyprus to view the property and confirm your intention to proceed with the purchase.
Finalising The Transaction of the property purchase
After reserving the property you need to visit the solicitor’s office to proceed with the legal paperwork for your Cyprus property purchase in .
At the solicitor’s office, the lawyer in charge shall explain to you in your preferred language the procedure of the purchase, prepare the contract of sale detailing the information of the property and the purchase price, the mode of payment and the delivery date.
Copies of all the documents signed at the lawyers offices shall be given to you for your own records. Please note that you are not requested to sign any kind of documents unless you read the documents and you confirm that you fully understand it and that you are signing the said documents with your own free will.
After Signing The Contract
After signing the contracts, the lawyer shall explain when you need to send your deposit for the property and in which account. Usually all the money transactions are effected through the lawyers offices and through their clients account for more security since the lawyer prior of handing over money to any developer shall make sure that everything is fine with your Cyprus property purchase and mortgage in case you apply for one.
Registration of the Contract of the Sales to the Land Registry as a Specific Performance
As soon as you pay your deposit and your mortgage is in place your lawyer must register the property in your name with the Land Registry as a Specific Performance. This has to be done in the period of 60 days from the date you sign the contract of sale. At this stage when this procedure is effected, the Land Registry shall provide to your lawyer a certificate with a registration number indicating the ownership of the property in your name. Please note that this part is the most important part of the procedure so you need always to request the certificate from your lawyer just to confirm that the registration has been effected.
The Specific Performance is working as a watch dog of your rights and is safeguarding your property interests. With this the property belongs to you and the developers can not mortgage the property, resell it or by any other means alienating the property unless you give your authorization. The Specific Performance acts as a burden and/or legal encumbrance on the property on your behalf and it is needed by the bank too in case you apply for a mortgage just to prove that you do owe the property before the bank proceed and make any payments to the developers.
Other Useful Information on Cyprus Property Purchase
On the contract of sale, always are attached the following documents:
- Title deeds of the plot where the project is constructed or to be constructed
- The Land Registry topographical plan indicating the plot.
- The master plan of the project
- The architectural plans of the property that you are purchasing
- The technical specifications that they provide the construction standards and finishes that are included in the price. The technical specifications included standard prices for the finishes and nearer the completion the developers are contacting you to ask you to choose your finishes from a selection within the price range included in the technical specifications. You have the right to upgrade your finishes when the time comes to choose them so if the tiles are of the price of 10 Euros and you choose a tile that costs 12 Euros you will need to pay only for the extra 2 Euros
All properties in Cyprus are freehold. Only in certain areas there is a small percentage of leasehold properties and you need to ask your lawyer to verify the status of the property that you are purchasing.
European citizens are free to purchase any number of properties on their individual names and the Council of Ministers application is not required any more after Cyprus has entered the European Union.
The non-European citizens are allowed to purchase only one property on their individual names and in case they want to proceed and purchase more than one they need to purchase it through a limited liability Cyprus company. Purchasing property in their individual names they need to apply to the Council of Ministers to acquire the permit.