Buying A Property in Cyprus

The Republic of Cyprus is a safe place to buy property provided that the correct legal steps are followed. The legal system is loosely based on the British system and English contract law and there is a reliable (if slow) system for the registration of land.

Information on the legal system in Cyprus with regards to buying property and the correct legal steps to be followed. Who may buy property, the restrictions and the registration of land with the Cyprus Land Registry Office.

RESTRICTIONS ON BUYERS

The first matter a buyer should determine is whether they may in fact purchase a property in Cyprus. In line with EU accession the General Attorney in Cyprus has given consent to District Officers to lift previous restrictions on EU citizens.

Citizens of EU member states can now purchase and transfer into their names any amount of land and property in Cyprus.

Non-EU citizens can purchase one apartment, or a house or villa which is under construction or built on an area not exceeding 4.014 square meters (2 donums).

A company with a majority of directors and shareholders who are Europeans [including Cypriots] is not considered to be a foreign company and can buy any amount of land and property in Cyprus.

Reservation Fees

Once a buyer has found the property that they wish to buy in Cyprus they will usually be asked to pay a reservation fee. It is important to have a signed reservation fee agreement drawn up which will outline the circumstances in which the reservation fee will be returned to the buyer or retained by the seller.

For example it should say that if the sale does not go through because of a defect in the title that the reservation fee will be returned and that the reservation fee is to be deducted from the actual purchase price on completion.

Due Diligence

A lawyer should carry out certain due diligence before advising a buyer to proceed.

This includes:

a. Carry out an encumbrance search at the Land Registry - to reveal any mortgages, charges or other adverse matters such as memos, a caution or court judgment against the title.

b. Carry out a company search - to find out the financial status of a selling company or use a credit reference company

c. Obtain the planning and building permits and the final certificate if such exists.

 

 BUYING A PROPERTY IN THE NORTH OF CYPRUS IS ILLEGAL 

 

 

 

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