Is it safe to buy a property in Cyprus?
Cyprus is a beautiful, attractive island that is ideally placed between three main continents: Europe, Asia, and Africa. Cyprus is a popular tourist destination.
As a result of the mild environment and roughly 320 days of sunshine each year, it has long been a particularly popular tourist site among visitors. With its competitive tax system, the island is also an excellent location for conducting international business.
Cyprus also has a rich cultural past and a varied society, as well as some of the world's most magnificent natural environments and landscapes.
In most cases, purchasing a property that has been issued with the necessary Title Deeds is a safe decision. However, it is not without its difficulties.
Encroachment, which occurs when a property is constructed on the land of a neighbour, may be a source of contention in rural areas.
I would recommend that anyone purchasing an older home or piece of land in a village have the property's borders examined by a licensed surveyor.
In all situations, you should retain the services of an independent solicitor to safeguard your interests and do due diligence on your behalf.
A lawyer who is independent of any other parties engaged in the transaction and who is licensed by the Cyprus Bar Association is what I mean by 'independent.'
What exactly are title deeds in Cyprus, and how are they obtained?
This legal document, also known as the Certificate of Registration of Immovable Property, or the Title Deed of the land as it is widely known, is issued by the Land Registry and serves as definitive evidence of the owner's ownership of the property.
In addition, it contains information on the property's location, reference number, and size, among other things.
Every piece of land in Cyprus is covered by a title document. When a property is being turned into buildings and apartments, a difficulty frequently emerges because a procedure must be followed in order to split the land into smaller parts if necessary, convert it into building plots, and finally construct the structures and flats in the issue.
Obtaining licenses from the Cyprus planning and construction authority is required at every stage of this process.
If a separate title deed for the home or apartment in question has not been granted, there will still be a title deed for the land, which will continue to be in the name of the Developer.
If the purchaser's lawyer did not make a mistake, the agreement should have been filed by the purchaser in this instance.
What to consider while purchasing a house in Cyprus?
Investing in any country is a hazardous proposition by its very nature. While certain risks are widespread in investments across the world (for example, market risks in which the entire market is losing value), it is smart for persons investing in real estate in Cyprus to bear in mind the following factors before making a decision on whether to buy or sell.
Re-evaluating whether real estate is the right investment for someone is never a bad thing in any situation. When someone desire to get citizenship, for example, they are entitled to invest in other sections of the country (such as investments in businesses).
However, now that the choice to invest in real estate has been taken, it is important to keep the following points in mind.
Compare the pricing of different sellers
Although it should go without saying, it is usual for customers to like and trust the salesman of a real estate agent or a property developer and to believe what he or she has to say.
Regardless of this, it is always advisable to investigate different options available in the market when making a well-informed purchase selection. Paphos properties with comparable specs may be valued considerably differently in various markets at different periods.
Large developers with greater visibility, for example, may command higher costs than smaller developers.
When it comes to buying the "brand" of large developers in order to feel more confident in Cyprus, consumers may discover comparable or better options if they search the market well enough. The majority of Cypriots do not purchase from large developers.
Location is important; yet, one should look into it more before making a decision. Is it worthwhile to spend the extra money to purchase a property in the back of a coastal building complex that does not have a view of the water?
Is it important to be close to the sea if you are not buying a vacation home or an investment property? Distances in Cyprus are relatively short, allowing people to reach the shore in as little as 5-10 minutes (especially in Paphos).
Properties in Paphos popular tourist destinations in Cyprus may also command a higher price. Even if one is purchasing a vacation house, purchasing in an established touristic location may not be necessary unless one plans to rent out the property for a few weeks or months each year.
In the case of acquiring real estate in Cyprus, the value of consulting with an independent lawyer cannot be overstated.
Buyers are frequently introduced to attorneys by real estate agents Paphos and developers, creating a potential conflict of interest for the lawyers, who may not be acting in the best interests of the buyer.
Those lawyers who receive major business referrals from estate agents and developers may be reluctant to offend their introducers, which increases the danger of a lawsuit.
The lawyer may not do everything possible to protect his or her client's interests when the interests of a buyer and a seller are at odds as a result of this.
If there are fundamental concerns with the acquisition, an independent lawyer will be able to urge a developer for a reduction when it is possible, guard against future construction troubles, and be honest with his or her client during the transaction.
Pre-contractual returns promises
Most of the time, salespeople will make promises to prospective buyers about a "great return" or an "amazing investment opportunity." Estate brokers and developers rely on the success of their sales, and they may occasionally provide a rosy picture of the situation for the buyer.
You should proceed with caution when dealing with these assertions. If you are purchasing a home for investment purposes, inquire as to whether these assertions may be provided to you in writing and whether the seller would stand by them with a guarantee of sorts.
Furthermore, you should inquire as to the source of their estimates in order to determine whether or not they have relied on professional research.
Building and property conditions
People who are purchasing off-plan properties must ensure that the developer's construction quality is of a high grade before making their purchase. The finest illustration of this is the developer's earlier projects, which should have been completed at least 5-10 years ago.
Do the walls have any fractures in them? Are their construction projects in good condition? The building of residential homes is covered by a 12-month statutory guarantee, which can be extended by agreement if necessary.
An impartial lawyer should establish provisions for the buyer to select its own specialists to inspect the quality and progress of the construction when purchasing off-plan property or land.
For previously owned properties, it is necessary to inspect the property. If there are pictures of moisture or cracks on the wall, this may indicate that the building was constructed improperly and should be avoided.
When building a large project in Cyprus, it is fairly common for property developers to copy and paste 1 or 2 types of houses from another project because it saves them money and makes construction more efficient.
Before making a decision to invest, one should evaluate how such initiatives will affect one's living experience as well as how future purchasers would respond to such developments.
When purchasing a home in a development that includes common amenities such as swimming pools and gardens, a buyer should inquire with the seller about the projected monthly fees he or she would be required to pay.
While this may seem little when purchasing a Cyprus home, the fact is that routine expenditures can range anywhere from €50 per month to €500 per month in some cases.
Is it possible to purchase a Cyprus property without obtaining a separate title deed?
Purchasing real estate with no title deed is possible, but sufficient due diligence should be performed beforehand to determine why the title deed has not yet been granted in the first place.
In addition, the selling price is always properly considered; the purchasing price may be a decent bargain.