Buying real estate in Cyprus is a responsible decision that requires thorough checks. Ensuring the legal integrity of the property will help you avoid future issues. In this article, we’ll explain how to independently verify the legality of the property you are considering purchasing.
Contents
Requesting the Title Deed
The first step is to ask the seller for the Title Deed. This document confirms that the property is registered with the Cyprus Land Registry and legally belongs to the seller. It’s essential to find out how long the seller has owned the property, how they acquired it, and who the previous owner was. If the property has multiple owners, ensure all of them consent to the sale.
The absence of a Title Deed can complicate the buying process. In such cases, it is recommended to consult a real estate professional or lawyer for additional verification.
Checking for Encumbrances and Restrictions
Legal encumbrances can significantly impact your ability to use or sell the property freely. To identify such restrictions, request a recent Search Certificate from the Land Registry. This document provides details about any liens, court rulings, or third-party rights associated with the property.
Additionally, review the property’s details on the Land Registry’s electronic portal. Ensure the property has legal access, that no planned government projects may affect it, and that there are no restrictions from the owner, such as bankruptcy orders.
Clarifying Tax Obligations
Before purchasing, it’s important to determine whether the property is subject to Value Added Tax (VAT). Ask the seller to confirm whether VAT applies and its amount. The seller should have documentation from tax authorities regarding the VAT application. Also, inquire about the Transfer Fee, which you’ll need to pay when transferring ownership for a resale property.
Obtaining the Certificate of Final Approval
The Certificate of Final Approval (CFA) confirms that the property was built in compliance with all construction regulations and holds the necessary permits. This document is particularly important when buying resale property. It ensures that any additions or modifications made are legal and won’t result in fines or legal disputes in the future.
If the certificate is missing, it’s advisable to consult an architect or real estate professional to assess the situation. Unauthorized changes can lead to serious issues after the purchase.
Specifics of Buying Subdivided Properties
When buying property resulting from subdivision, several aspects need attention. Ensure that all necessary planning and building permits are in place, along with deviation permits if applicable. A deviation permit indicates that the construction was approved despite deviations from standard regulations.
Verify how the subdivision was formalized and whether a registered agreement exists among the owners regarding shared spaces like parking or terraces. This helps prevent conflicts over the use of common areas. Additionally, clarify your share in the common property and rights to use communal facilities.
If further construction is planned, check if there is unused building density and who holds the right to use it. For incomplete properties, review the completion schedule and the conditions in case the seller fails to meet deadlines.
Finalizing the Transaction and Transferring Ownership
Once all documents have been thoroughly reviewed and no financial or legal obstacles remain, you can proceed with the transaction. Avoid paying the full property price until ownership has been officially transferred to your name. If there are outstanding issues or obligations, consider signing a preliminary agreement with the seller and registering it with the Land Registry.
If you’re purchasing from an existing buyer who previously signed a sales agreement, confirm whether that agreement was registered and whether any financial or other obligations exist toward the original seller. Pay attention to any financial encumbrances that may have arisen before or after the agreement was made.
Conducting a comprehensive legal check of the property before purchasing in Cyprus is a necessary step to ensure your safety and confidence in the transaction. By addressing each of the aspects mentioned, you can significantly reduce risks and avoid potential issues in the future. If you have doubts or questions, don’t hesitate to seek professional assistance for qualified support.
