The Buying Process In Cyprus

2. Permission to Own Property in Cyprus. Apply for permission to own a Cyprus Property from the Council of Ministers. Either you can do it or your lawyer can do it for you. It’s not necessary to obtain this before you buy the property however you need to get it at some point. You will need the agreement in order to sell the property on.

3. Property Inspection. Many people buying in Cyprus pass over this step, which is fine if the property is relatively new. Yet the cost of a survey is inexpensive. Just as it is in the UK. If you neglect to get a survey and the house falls apart later, its your responsibility and your cost to pay. New properties have a lifetime guarantee for major structural problems; however you have to prove negligence. And anything minor has a 1 year guarantee. For the most part, the only time you really need to get a survey is when the property is old and may have structural problems. Your lawyer will be able to put you in touch with a good surveyor.

Very important note: If two people are buying the property (e.g. husband and wife), these figures are per person. Thus, with a couple purchasing a house for 171,000 euros the total paid would be 3% (or 85,500 euros per person).

BIG NO-NO: Your solicitor may advise you to put the name of the property in your parents or other relatives names if you're buying as a single person. By doing so, you could save a few bob, HOWEVER, this could cause a HUGE problem with inheritance tax if your relative still lives in the UK. If they die, their estate will include of the Cyprus property and will cause the value of their estate to increase under UK tax law. If it pushes their estate over the threshold, and you're the beneficiary of their estate you might have to pay inheritance tax totally unnecessarily.

From my experience, I think it's wise to talk to IFA's regarding finance and NOT your solicitor!

Note: if you buy an off-plan property you may have to wait up to 5 years for your title deeds sometimes even longer. Keep in mind that once you get the deeds you'll need to pay the tax. Don't let it worry you that you can't get the deeds - you can still sell a property that does not yet have the deeds... Do note however that you can't alter the property in any structural way until you do have the deals.

8. Take Possession of Property. When the terms of the Sale Agreement have been met you can take possession of the property.

For New Properties

8. Sales Agreement. Once you agree to the sale agreement, provided your solicitor is happy (and it really is advisable to have a solicitor!), and you have the finances in order, you will be legally bound to it. Within the agreement will be an outline of staged payments. At the signing of the Sale Agreement, you are usually required to pay an initial deposit this can be 20%-30% value of the property. And then 3 to 4 more stages making up 100% of the payment.

In some cases there are finance options where you pay X% now and nothing until completion. Check with your developer/agent or mortgage lender to understand what your options are.

9. ‘Notice of Completion.’ When a stage is completed the developer will notify you or your solicitor that the payment is due. The ‘Notice of Completion,’ will be signed by the civil engineer or the architect. You will have a short period of grace to pay (see top tips on stages and mortgages in the Cyprus Buying Guide).

10. Final Completion. Once you make your last payment you will have to pay Stamp Duty and the Transfer Free (from the developer to you) and then take possession of the property. As with new UK properties, you’ll need to walk around and create a snag list of any issues or problems. In the Cyprus Buying Guide Bonus Worksheets, you'll find a full snag list to help you check every possible problem before accepting the property!

Unbelievably the buying process in Cyprus can be very quick - many buyers fly down and purchase a property within a week! Cyprus property professionals provide property to many Brits, thus they're completely geared to getting contracts in place and providing you with the property of you require.

HOWEVER, stating that, things can happen too fast. When you go to Cyprus you'll notice that the competition is strong and there are many hard sales tactics used. An unethical salesperson knows that they only have a few days to get you to buy, so many use every trick in the book.

One common sales trick used in Cyprus is the 'Bait & Switch,' method. What happens is the agent/developer will show you a very good priced unit. Let's say a 1 bed flat for 80,000 euros.

You'll agree to buy it, spend hours filling out contracts, visiting the solicitors and become emotionally drained. And then...just before you leave, the agent/developer will call you back to say, 'You won't believe this but as I was selling the flat to you, my business associated sold it before me...but don't worry, we can provide you with the flat next door and it's only 93,000 euros guaranteed...But of course, you must act fast to get it."

By the time you hear that your sale has fallen through, you don't want to expend any more time and energy so you seriously contemplate the 93,000 euros offer. This is s TRICK, so don't let it happen to you.

In order to avoid dealing with tricksters and unethical developers, please let me help you find the best property professional for you. Since I work with Cyprus buyers and investors every day (along with the developers and agents), I know who is good and who is not.

Please fill out my form on the Property 'Matching Service' page. Buying in Cyprus can be fun, but you really must do your homework and ensure that you're dealing with good people.

Any questions, please eMail me at: Mailto:Kim@CyprusBuyingGuide.com