Buying your Land in Cyprus to have a house built – is this always safe?

If you want a property to your design and specification then the advice is find an appropriate plot of building land with good unencumbered title, purchase it and get your Title Deeds right away.

I have just come across a variation that could place the unwary to disadvantage.

Vendors can sell the land with a clause in the sale contract requiring that they are the only ones that can build your property on the land. I call this ”the exclusive development clause”.

“7. PURCHASERS’ LIABILITY

 The Purchasers agree to develop the land with the Vendors, whenever they decide.”

That means that until you have had them build your house you cannot replace the sale contract with Title Deeds with the land transferred into your name. You simply cannot have the land transferred to your name. 

And if you wish to sell that land without building a property then you will most likely find that with the exclusive development clause nobody will pay the full market price, if, indeed anyone is interested in buying.  So who can you sell it to?  The original vendor who put in the the exclusive development clause, of course.  

I have come across land repurchased for CYP84,000 and sold again, with the exclusive development clause, for CYP150,000 !!

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