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HOW TO BUY PROPERTY

Step 1. Choice of property

  • Arrangement of an inspection tour with duration of at least 3 – 5 days
  • View potential properties personalized according to the client’s preference
  • Experience the benefits of Cyprus lifestyle.

During the tour, the buyer will be accompanied by a representative of the company who speaks his language. The conditions of the unique inspection tours may be seen here.

Step 2. Preliminary agreement

  • After selecting a property, the buyer should sign a preliminary agreement (reservation agreement)
  • Pay a deposit to reserve the chosen property.
  • Upon signing the reservation agreement, the property is taken off the market for conducting a legal check and agreeing about the terms of the deal. For this purpose, the buyer has to appoint a certified lawyer who will act on his behalf and will study the property from the legal point of view as well as recommend an appropriate version of the sales contract protecting the interests of the buyer to a maximum.
  • Reservation deposits vary depending on the price of the property and are normally 1-2% of the purchasing price.

Step 3. Opening bank account

  • The buyer is recommended to open an account in a Cypriot bank for making the payments to the seller. CCN can suggest for you leading legal services which are ready to assist the buyer in this matter.

Step 4. Contract of sale

  • Once all the preliminary steps above are made, the buyer and the seller sign a contract of sale.
  • Upon signing the contract, the lawyer applies to the so-called Council of Ministers to obtain a permit to purchase the property (it’s required for non-Cypriot buyers and normally is a simple formality).

Step 5. Registration of Contract of Sale in the Land Registry

  • The lawyer submits the contract to the District Lands Office to register the purchase.
  • The Lands Office stamps the contract and records it in the Land Registry. This secures the buyer’s ownership rights until a separate title deed is issued.

Step 6. Settlement with the Seller

  • The payment for the property can be conducted directly to the Seller’s account but for off-plan properties the company strongly recommends to use so-called ESCROW accounts which offer a more secured way of payment at which the seller gets payments by tranches, as and only if the construction progresses. Most lawyers in Cyprus offer ESCROW account services.

Step 7. Transfer of title deed

  • If the seller has got a title deed (ownership certificate) for the property, the transfer of the title deed on the name of the new owner can be done immediately. Typically, this is the case when buying a resale.
  • If the property is brand new, in most cases the seller (developer) doesn’t have a separate title deed for the property and the buyer may end up having to wait some months before it’s issued. Until that time, the ownership rights of the buyer are guaranteed by the registration of the sales contract at the Lands Office
  • The application to the Lands Office to obtain the title deed is also done by the lawyer or a register Estate Agent.

Important Notes:

  • When doing the legal check of the property you purchase, a lawyer must investigate if there are any mortgages on the property and, if there are, it’s a must that you secure the so-called waiver which is a very important document that makes your sales contract prevail any existing liabilities of the seller to the bank with regards to the property. This document is crucial to guarantee that your property wouldn’t be seized by the bank should the seller go insolvent.

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