The process to buy property in Cyprus is simple and straightforward. Cyprus law is based on English law and the procedure is not complex or lengthy. A contract of sale is typically only a few pages long.
It is not compulsory to use a lawyer but it is advisable. A lawyer can ensure that they buyer will get good title deeds and perform required due diligence such as conducting a property search with the Land Registry.
The Land Registry in Cyprus provides accurate and comprehensive information and all land is registered. The Land Registry can provide a detailed history of a property in question and reveal any possible encumbrances such as a mortgage or a memo.
Typically a reservation agreement is signed after both parties have agreed on the sale price. The buyer pays the reservation agreement and his/her lawyer initiates the due diligence process to make sure his/her client will obtain good title deeds. The due diligence would involve a property search with the Land Registry and other investigations. The terms of the Contract of Sale will be finalised and when all due diligence process has been completed the seller and buyer can sign the Contract of Sale. The buyer pays for the stamp duty for the Contract of Sale. Before depositing the Contract of Sale into the Land Registry the seller must obtain discharge from the tax authorities and pay all taxes due which relate to the property, such as municipality taxes, etc.
Once the above process has been completed, the Contract of Sale is deposited into the Land Registry and transfer fees are paid by the buyer. Once the Contract of Sale has been deposited to the Land Registry the seller cannot sell the property to someone else and the buyer's rights are fully secured. If the property already has title deeds, it typically takes the Land Registry around two months to issue title deeds into the buyer's name.
