Buying Properties in Cyprus: Location, Purpose, Process
By: Chambersfield Economides Kranos
Blue Flag awarded beaches, charming forests with scenic waterfalls and countless breathtaking natural landscapes rule this blessed island in the Mediterranean Sea.
Cyprus gives a whole new meaning to the term “ideal relocation destination” and is among the top preferences of people wanting to buy a property on the island.
The decision to set roots in a place or relocate from a different city / country is heavily affected by specific characteristics.
Location, to begin with, is probably the most important factor when making the decision to buy your dream property. People ideally would choose a beach side property, especially if their budget allows it as, usually, this kind of properties cost significantly more than a city property or even a property on the mountains.
For some people though, choosing their preferred location is closely related to the purpose of the property buying. If the property will be used as a vacation home, then a mountain property is more likely to be chosen while, on the contrary, a summer home usually is a beach front property.
Additionally, it is important to mention the people looking to buy properties for future investments such as rent or resale after few years to earn yield. These people, usually choose properties in the city center, close to amenities, easier to rent / resale etc.
Whatever the case, acquiring a property, for either your permanent residence or a seasonal home, is quite complicated procedure which often leads to conflicts and misunderstanding between the involved parties due to the complex process and negotiations needed to be followed.
First of all, since buying the right property is of upmost importance, buyers should start the decision-making process by appointing an experienced and well-informed legal advisor to be their trusted partner through the entire procedure.
With the legal consultant by your side, you should start searching for properties matching your requirements. Viewing and shortlisting the best options available, should allow your legal advisor to conduct the proper due diligence on the chosen developer’s financial state and capability to finish the property on time.
After you reach the decision on which property to buy, the negotiation stage comes, where sellers and buyers try to decide the sale price for the chosen property. Legal advisors are well qualified negotiators who will do the work for you in terms of getting the best possible sale price for the property.
Following the agreement on the sale price, legal consultants must conduct the necessary due diligence on whether the property is legit, the growth prospects of the property / area and discover any “hidden traps” if they exist before preparing the contracts.
When the contracts are prepared, sellers and buyers should review them in order to both agree on the contract terms and important key points such as agreed price, payment terms, delivery date, dispute and penalty fees in case of delays or cancellations etc.
At this stage, it is noteworthy to mention that, before heading to the Land Registry, the whole amount of the buying should be paid in advance (loan, cash payment etc.). The appointed lawyer could offer their escrow services to secure and safeguard both parties’ best interests.
During the stage of the transfer of the Title Deed or Lodging of the Contract of sale at the Land Registry, the lawyers involved will organize and manage the payment procedure. At this point, the buyer will have to pay the transfer fees.
It is important to note that before the parties reach the Land Registry, a due diligence by the lawyers is performed in order for the buyer to know exactly the legal status of the property and whether there are any financial burdens or any other issues with the property before proceeding with the Title Deed transfer or Lodging of the Contract of Sale.
Buying a property is a complex and time-consuming procedure which involves a number of parties until its completion. This is the most significant reason why a Lawyer is essential and the key person to simplify the procedure at every single stage.