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When you buy a property in Southern Cyprus, you may or may not wish to use an Estate Agent - the choice is yours. Many people do sell their homes privately and it is common practice to buy this way. The good news is that there are now no issues when it comes to choosing your Estate Agent – unlike this time last year, when according to the Interior Ministry, there were a great deal of “illegal agents” operating on the island.
In case you are not aware, I’ll bring you up to speed with what has been going on. For many years, Cyprus closed the doors to European Estate Agents wishing to practice in their country. To put it simply, unless you had passed your Estate Agency examinations in Greek, there was no hope of obtaining the necessary licenses and registrations to operate legally.
To get round this, foreign agents would still set up their business in Cyprus, but would disguise themselves as “Marketing Agents” instead of Estate Agents and operate this way. Or, they would find a legally registered Estate Agent who was willing to let them pass the sale via their agency in return for commission.
Well, these practices just couldn’t continue, so a large number of foreign “illegal” agents complained to the European Commission. As a result, an enquiry was conducted into the restrictive practices that penalised Estate Agents from other EU-member states wishing to operate on the island. The outcome was favourable.
A new law now means that all individuals who have graduated from a secondary school in a European Union member state – and who are already actively involved in Estate Agency with a minimum of five years experience - will now be able to establish themselves in Cyprus and operate legally.
Phew! Now that piece of history is over with, let me tell you a little more about how Estate Agents work. When you find your dream property, you will need to put down a small deposit (around 5,000 euros) which takes it off the market. If the property is a resale and you are a cash purchaser, it is possible to complete in just a few days. If you need a mortgage, the process is much slower.
All deposits are paid to your lawyer, not the Estate Agent. The Estate Agent will monitor the sale through to completion. Estate Agency fees vary from 1% to 5%, with around 4% being the norm. These fees are paid on completion. Remember to always negotiate.
Estate Agents are set up in a similar fashion to the UK. There are plenty of them around, often in prominent positions in busy areas - and particularly in tourist areas. They do operate to a professional code of conduct.
Properties are displayed in their windows. Just pop in to say “hello” – or “yassou” – which means “hello” in Greek - and have a browse. Don’t be surprised if you are offered coffee or a cold drink, or even something to eat – expect to be there for a while, they are very friendly. To be in a rush would be considered rude, so take your time and enjoy the moment.
If you see something you like, the agent will take you to view in his or her car. In fact, they are quite happy to spend a few days with you. You will find they host you extremely well. It’s perfectly normal for them to take you to lunch and dinner; it’s all part of the service.
Best advice is to visit several estate agents, get a real feel for the area you are interested in, and don’t rush into buying the first thing you see. Make sure you visit the island several times before you take the plunge. Have fun!
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