Buying property abroad can be a daunting task for those looking for their special place in the sun. Economic development and a construction boom in recent years has strengthened Cyprus’ infrastructure, no more so than in the property market. There are many rules and laws in Cyprus concerning buying an apartment that should be understood. By learning the laws and rules before you jump into purchasing a property will make the rest of the property buying experience much more pleasurable and less stressful.
A reputable estate agent can guide you through the apartment buying process in many ways besides arranging times for you to view properties. They can offer mortgage advice as well as recommend property lawyers who can assist you in all the legal and required paperwork once you have chosen a property. All estate agents are required by law to be licensed by the CREAA and carry insurance. They are required to advise the buyer of a property’s bad points as well their good. Make sure your agent is both licensed and will give you straight forward answers and information concerning the properties you view. If you feel you are not getting the best service from your agent look for another one.
When making a bid on a property, you are required by law to pay a reservation fee. This fee ranges from $2000 -$3000 and is paid to a developer or estate agent when the price and payment terms are agreed. These funds act as a deposit for your upcoming apartment purchase and will hold your purchase while you work through the legal paper work required to purchase a property .
An apartment buyer has just 28 days from paying the reservation fee to have searches and surveys carried out as well as prepare the sales contract. A lawyer can assist you in understanding legal rules concerning buying an apartment as well as completing necessary paperwork. These are often completed in English. After signing a sales contract, laws concerning buying an apartment in Cyprus state that the buyer has just four weeks to complete the sale. Permission from the Council of Ministers must be applied for before holding title deeds for your apartment in Cyprus, due to your status as a non-resident. A lawyer can assist with applying for this. The lengthy laws and rules in Cyprus concerning buying an apartment mean you should expect to pay legal fees. These should be just under one per cent of your property’s purchase price. Many new developments offer free legal assistance, however this is not advised as you are best using an independent property lawyer. Stamp duty will need to be paid when contracts are exchanged at a rate of 1.5% for apartments sold for less than $200,000 and just .2% on properties exceeding that amount.
The process for a foreigner to buy an apartment in Cyprus, compared to other destinations, is quite simple. With good legal and property advice, you should have no problems with the rules or laws in Cyprus concerning buying an apartment.