Pitfalls to Avoid when Buying Property in Cyprus

1. Pitfalls to Avoid when Buying Property in Cyprus  So you want to buy property in Cyprus. But you’re worried about investing in an unfamiliar  country where tons of things can easily go wrong.     Don’t worry. You’re not alone.    Buying property in Cyprus has, unsurprisingly, exploded in the past couple of years. From its  highly-affordable housing market to low taxes and even lower crime rates, it is no surprise that  this quaint Aegean island has taken off.    Whether you are looking to buy your next retirement home or rent an apartment by the sea,  Cyprus residence​ can be tricky, especially if you are not yet accustomed to their realty  procedures.    This guide explores the common faults buyers often make when purchasing property in Cyprus  and outlines the steps you can take to avoid getting caught in the confusion! 

2. What to Look Out For Working with an Unregistered Estate Agent  It is not uncommon to come across unlicensed estate agents in Cyprus. Thankfully, the  government has introduced new legislation to counter these illegal activities, but you still can’t  be too careful when it comes to finding a registered agent.    Registered estate agents, such as Prime Property, must pass a series of professional  examinations before qualifying to work, guaranteeing they are adequately knowledgeable of all  transgressions that may affect your purchasing experience.    Nowadays, most property deals will be covered by insurance, protecting buyers and sellers if a  transaction goes awry.   Obtaining Written Permission Before buying, it is essential to make sure you first obtain permission to buy from the Council of  Ministers, a division of the executive branch of government, via a written application that can be  found on their website.    The application requires the input of specific property details so you should fill out this  application after you have found a property to purchase.  Mortgage Mixups  When buying from a developer, there is a mortgage involved, and you may not get your hands on  the title deed of the property until the mortgage is paid in full. Not only that, but it’s even  possible you’ll be made liable for that mortgage if the developer or landowner declares  bankruptcy.    A title deed is an official certification from the Land Registry of the Republic of Cyprus that  names the legal owner of a property. Making sure the potential sellers have a legal title deed to  the land is essential when it comes to protecting technicalities that may infringe your purchase.    You should make sure your development contract is deposited with the Lands Office to  guarantee the developer is legally responsible for your property until the title deed can be  transferred to you. 

3. Skipping the Lawyer  Appointing a lawyer is one way to make sure a developer is not cheating you. By finding a lawyer  specialising in ​investment citizenship​ before signing a contract, you are less likely to fall victim  to a contract that does not protect the buyer and is biassed towards the developer’s demands.     Hiring a lawyer is the most important precaution to take when buying property in Cyprus,  whether it’s from a developer or owner, because a local lawyer will have the best knowledge of  each step you should take.  Unclear Contracts  After hiring a lawyer, it is essential to write a contract that clearly outlines both you and the  seller’s obligations. All terms negotiated between you and the seller need to be expressly  included in the written contract, including the agreed inventory.    Your lawyer will help draft this contract to make sure you are fairly represented and obtain all  ownership rights.  Due Diligence  Having a lawyer is also helpful in conducting due diligence. Due diligence is when the lawyer  makes sure there are no pre-existing mortgages on the property. He will also make sure all  mortgage negotiations have been documented in writing, including the signature of any  co-owners.    Because many properties often have co-owners, ensuring all owners’ agreement of the sale is a  crucial step to avoid fraudulent errors later on.   Displaced Homeowners  Another reason for exercising caution when buying is that property ownerships are still heavily  disputed in Northern Cyprus. Thousands of displaced peoples have had rulings in their favour  from the European Court of Human Rights - meaning, if they owned a property before 1974, they  could still be considered the legal owners today!    The Cyprus Property Action Group has advised potential buyers to only purchase a resale  property with a full Title Deed, thus ensuring legal ownership goes straight into your hands. 

4. Divorce Ownership Disputes  Ownership disputes are also common in divorce proceedings and are one of the many things to  double-check before buying. If you try to develop on a property that has not been legally  attained, you risk forfeiting both your property and money.  Where Should I Start? The easiest way to avoid all of these potential pitfalls is by starting with a qualified estate agent  that has experience with property purchases in Cyprus.    Original Source: ​https://www.prime-property.com/en/Blog/A-Guide-for-Foreign-Investors/