CYPRUS PROPERTY BUYING GUIDE - A STEP BY STEP PROCESS
First of all, congratulations on your decision to join thousands of other property owners who also made the decision to buy a property in Cyprus.
The process of buying a property in Cyprus is straight forward and easy.
PROPERTY VIEWING TOURS
Real estate companies in Cyprus organize property viewings where you will physically view and inspect the property if you are interested in buying a resale home or inspect the location if you are buying and off plan property.
The properties on the viewing tour will be selected according to your requirements.
MAKING AN OFFER
Once you have found a property you are interested in, it is time to place an offer. Your property consultant will place the offer on your behalf.
Your property consultant will negotiate the best possible price on your behalf. Negotiations also include delivery date, stage payments and any other modifications or extras to the property.
Once an agreement has been reached on the price between buyer and seller, then it is time to pay a reservation fee
PAYING THE RESERVATION FEE
The reservation fee is an important part of the process. It forces the property owner to take the property off the market for a reasonable period of time until the contacts are signed. It binds the property seller to the price agreed, guarantying that the property buyer will not get gazumped.
The reservation is held by your lawyer or by the agent you have selected.
All reservations are refundable in the event the lawyer searches are not satisfactory.
VISIT TO THE LAWYER - CONTRACT SIGNING
Demev Groups works with expert property lawyers with decades of experience in property contracts in Cyprus. At this stage, if you do not have lawyer, Demev Group will introduce one to you.
Your lawyer will explain in detail the buying process from beginning to end, taxes, financial aspects, money transferring and how your interests are safe guarded. Meanwhile the lawyer will do all necessary searches with the Cyprus Land Registry Department and other checks to confirm that the purchase can proceed. If so, Contracts will be prepared, exchanged between the buyer ad seller lawyers and signed. If you are not in Cyprus, your lawyer will sign on your behalf through Power of Attorney.
At the moment of signing the sale contract, the buyer will pay a pre agreed amount of money to the lawyer. The amount is usually around 40% of the sale price. This amount also depends if your are buying an off plan property or a resale property.
In the event of a resale property there will usually be two payments. Once with the signing of contracts and another with delivery.
If buying an off plan property there will usually be more payments according to the progress of the house spaced out over the period through completion.
Stage payments are usually made to your lawyers client account.
Once contracts have been signed and the first stage payment made, your lawyer will stamp and record the sales contract with the Land Registry Office. This process is called Specific Performance and it locks the property to the buyer’s name until the title deeds are issued.
OPENING A BANK ACCOUNT
The process is easy and fast. A bank requires the following documents for opening a bank account:
- Passport Copy
- Recent Utility Bill of your overseas house (translated in English)
- Income Certificate (translated in English)
- Bank Statements (translated in English)
- Copy of a Clean Criminal Record
We will accompany you the bank and help open the bank account.
TAKING POSSESSION OF YOUR PROPERTY
In the event of a resale property, as soon as you pay the balance of the purchase price and the transfer fees (and VAT if applicable), the title deeds are transferred to your name, the keys are delivered to you and you are ready to move in to your new home
If buying an off plan property, you take possession and move in as soon as you make the last payment, but the title deeds will not be ready at that time. The title deeds will be transferred to your name once the Land Developer completes the subdivision of the project.