GUIDE FOR BUYERS
Whether you are purchasing property to meet the requirements for citizenship by investment or permanent residency, it is critical to be aware of potential dangers as well as the additional fees. Hiring an experienced real estate lawyer helps keep you from making the same mistakes that others have made. Purchasing a home is a huge investment, and the finer parts of the transaction must be carefully considered.
The first step is to ensure that the property is free and clear of any liens. It may be the property of a divorced couple, or it could be the subject of an inheritance dispute, or it could be the subject of a mortgage, in which case the house would belong to the bank. A qualified real estate attorney will undertake all essential investigations to ensure that the property you are about to purchase is fully available.
After that, you’ll have to work out the commission you’ll pay the agency you’re buying the property from. There may be ‘hidden’ commissions that you are unaware of, so read everything you sign carefully. In addition to the house price and commission, the amount of VAT due, transfer fees, stamp duties, immovable property taxes, and, of course, legal fees must all be considered.
Transfer fees are due at the time the property is registered in your name at the Lands Registry Office. The fee will be determined by the property’s worth and whether it was purchased in multiple names. If the property is purchased jointly and in two names, the value will be divided between the two, and both parties will save money on these costs because the calculation will be based on 50% of the property’s worth. With the exception of EU nationals who live in Cyprus continuously, transferring property to a foreigner will require the approval of the Council of Ministers.
If you are purchasing a home in a gated community with multiple homes, be aware that the developer may have mortgaged the entire property in order to obtain a bank loan for the development. If you buy a house without having your lawyer conduct a due diligence search on the property, you could be in serious danger if the developer goes bankrupt. This happens, unfortunately, not only in Cyprus, but all throughout the world. It is the buyer’s responsibility to avoid falling into this trap. You essentially need to know that once you’ve paid the whole sum for your property, you’ll receive a free and clear title deed.
If you are requested to pay a deposit to secure the property of your dreams, make sure it is specified clearly in a written contract that this amount would be removed from the purchase price, and find out what you would be entitled to if the deal falls through. In fact, be sure that everything you’ve discussed with the seller or developer is written down to avoid any future disagreements. Because saying something and doing it are two different things, be sure you sign a legally enforceable contract that spells out everything that was agreed upon.
Keep in mind that a Contract of Sale must be stamped and registered at the Land Registry office within the timeframe required by law; failing to do so may result in the loss of certain legal rights.
If you are purchasing a luxury villa in Cyprus and will not be living there for the entire year, you should consider hiring a property management firm to look after the property while you are away. Find a reliable company and make certain that all of your requirements are written down in a legally binding contract. You must also ensure that your home and its belongings are covered by comprehensive insurance.
Another factor to consider while purchasing a home in Cyprus is your Will. Cyprus has unique regulations regarding a deceased person’s estate; a specified percentage of the estate belongs to the husband, and the remainder is shared among the children. If this is not what you want, make sure you have a Will drawn up by a lawyer so that your family is protected the way you want them to be in the sad event that something happens to you.
Cyprus Holiday Homes for Sale
There are listings for coastal homes, flats, houses in rural areas, and everything in between when it comes to properties for sale in Cyprus. Cyprus is a lovely island with wonderful weather all year, making it a tempting option for a second home, retirement in the sun, or as an investment for rental potential.
Cyprus Commercial Real Estate For Sale
Find commercial real estate for sale in Cyprus, such as hotels, retail outlets, bars, restaurants, coffee shops, and other business opportunities. We usually offer a diverse selection of commercial real estate for sale in Cyprus, with listings from local agents.
Cyprus Land for Sale
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