[BUYING AND SELLING REAL ESTATE IN CYPRUS]
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KEY FACTS OF REAL ESTATE ACQUISITIONS UNDER CYPRIOT LAW A. General 1. Introduction
of the transaction. Their purchase transaction would be registered at the Land Registry. B. Standard forms of Agreements The acquisition of a real estate property could be concluded with the following forms of agreements: ✓ Reservation Agreement . Usually this effected by a “reservation agreement” whereby the seller grants to the buyer an option to purchase the property within a certain period in consideration of a reservation fee. After paying the reservation fee the property is removed from the sale and reserved for the buyer. The paid amount of the reservation fee is included in the cost of the purchased object. ✓ Sale and Purchase Agreement. The sale and purchase agreement include the final terms and conditions of the agreement between the buyer and the seller. The contract contains valuable information about the transaction such as the payment structure. Usually an amount of around 20%-30% of the agreed sale/purchase price is payable with the signing of contracts and the balance is payable on the completion date. The completion date is the date on which the seller (or his power of attorney) and the buyer (or his power of attorney) will meet at the Land registry to finalize everything (transfer the title deed receive the balance of sale price hand over keys). The Sale and Purchase Agreement must be must duly stamped in accordance with applicable law and must be submitted to the relevant
Cyprus is a common law jurisdiction, and its legal system is based on the UK one. It is a clear and robust system which leaves no uncertainty as to the ownership status of real estate in Cyprus. The Land Registry Office in Cyprus (with district offices in each of the major towns of the island) records and maintains up to date records of ownership and interests over land. In parallel, Cyprus’ immovable property law, the cornerstone of real property ownership and transactions related to land, regulates the transfer of title, tenure, registration, disposition, and valuation of immovable properties in Cyprus and the creation of securities, charges, and interests over the same. 2. Land Registry Department The Land Registry Department was established in 1858 based on the model. It is said to be one of the most reliable and trustworthy worldwide. All rights, interests, and easements (for example mortgages, long leases, rights of way) associated with immovable property, cartography, registration, and of course transfer of title to immovable property, are monitored and registered by the Land Registry Department. Accordingly, purchasers of real estate property in Cyprus can have full knowledge of the status of the property they are interested to buy, as the information related to their potential purchase can be traced from Land Registry records prior to the completion
ILN Real Estate Group – Buying and Selling Real Estate Series
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