How to find a property
Estate Agents
UNTIL a couple of years ago, the author was not aware of a single British-run estate agency based in Cyprus. Today, looking at newspaper advertisements, there are several. Cypriot estate agencies abound aplenty and estate agents have woken up. While artists’ impressions remain the most common items typically displayed in the window at least the properties they portray tend to be priced nowadays.
Estate agents are licensed by The Cyprus Real Estate Agents Association (CREAA). Well, some of them are! Those that are not are acting illegally; in theory, at least, any contract they have with a vendor would not be enforceable. Unlicensed estate agents are not subject to the controls of and protection offered by the regulatory body, the most important of which requires its members to carry insurance to protect the purchaser against either the agent or the developer becoming insolvent. CREAA requires licensed estate agents to provide insurance of £50,000 per customer; some agents voluntarily carry insurance of £100,000 per customer.
A second benefit of dealing with a licensed estate agent is that his receipt is deductible from the vendor’s liability to Capital Gains Tax.
A few of the ‘unlicensed’ estate agents are just as good as the licensed ones but others make exaggerated claims as to, for instance, the numbers of thousands of ‘hits’ they get on their website. In itself that is not serious; what is of serious concern is the attempt by a few fly-by-night cowboys to sign the would-be vendor up at an extortionate rate of commission on an exclusive basis.
As a protection for licensed estate agents, the House of Representatives passed a law in December 2004 forbidding non-licensed estate agents from advertising property. Whether the law has any teeth remains to be seen.
An estate agent’s commission is typically 5%; the percentage prescribed in law is 3%. If the estate agent wants more than 3% then he must persuade the vendor to agree to his terms in writing. Should you be in breach of the contract with the estate agent, the agency will only be able to sue you for 3% of the sale price. Be careful with contracts offered by estate agents. Unless you read Greek, insist that the contract is in English and read the agreement! Never sign an exclusive agreement; your property might not sell because the estate agent hasn’t bothered to advertise it and if you place it elsewhere and another agent sells the property, you are still legally bound to pay the first estate agent as well!
Avoid open-ended agreements; give your chosen estate agent a reasonable amount of time to sell your property and if he has failed to do so within the time stipulated you are free to go elsewhere. Feel free to haggle about the agent’s commission – the rule of thumb used to be 4% commission on urban property and 5% on rural property. Don’t allow yourself to be hassled. An unscrupulous agent is only interested in getting your signature on his contract with you. Take the contract away and consider it at your leisure. If anything worries you, phone your lawyer and talk it over. Finally be aware that there is no legislation in Cyprus granting a ‘cooling off’ period.
For many years estate agents in the UK have been offering properties in Cyprus and nearly all of these specialist UK estate agents appoint a local estate agent to show you the property and answer your questions. Should you find a property through a UK estate agent, do make sure that the corresponding agent in Cyprus is a licensed estate agent.
Other sources of property
There are hundreds of web sites detailing property for sale and for rent in Cyprus. Just go to any search engine and you will be able to spend hours surfing the web.
There are a couple of dedicated agencies that, while web-based, do have offices in Cyprus. These agencies are not estate agents per se – they simply put buyer and seller together. One worth considering is ‘For Sale Cyprus’.
Word of mouth
By far the best way to buy, sell or rent property is by word of mouth. That may sound tricky if you live in the UK, but really it isn’t. Most of us buy or rent a property because we want to live in a particular area. So, if the villages in the foothills of Troodos sound attractive to you, rent a car and go exploring. If you find a village you like the look of, have a coffee or whatever in the village taverna and talk to the owner; you are more than likely to find that he speaks English; and, believe me, the locals know everything that is happening! Conversely, if you are selling or want to rent your home here in Cyprus, put a notice on your gate saying so… and be sure to tell the owner of your local taverna!
Valuing property
The Association of Valuers and Surveyors was formed in October 2004 to undertake valuations of both land and property for commercial, industrial and residential purposes. Some of the association’s members also undertake property management which may be of interest to those who wish to rent out property in Cyprus.
Valuations cost about £100 for a typical house and £75 upwards for a plot of land. The actual cost varies depending upon the distance from the valuer’s office to the property and upon the value of the property – more expensive properties are obviously larger so more work is required to ascertain their value.
Surveying property
It is surprising just how few people who buy property in Cyprus bother to have the property surveyed before they purchase it. One would not dream of buying a house in the UK without having it surveyed and you would be ill advised not to do so here.
Surveys in Cyprus are usually carried out by a civil engineer and occasionally by an architect.
New property comes with a lifetime ‘guarantee’ for major structural faults; note however that the burden to prove negligence is on you. The normal guarantee for minor defects is one year and should you sell before then the subsequent purchaser acquires the residue of the guarantee.
You will want your Surveyor to report upon the following, where appropriate:
• State of the foundations
• State of the damp proof course
• Any sign of rising damp and if so the seriousness, cause and likely cost of remedial work required
• Check of under floor areas
• Any sign of cracking in walls and pillars
• Quality and condition of cement in concrete constructed buildings
• Quality and condition of woodwork including check for dry and wet rot
• Drains and manholes
• Septic tank
• Condition of electrical wiring including earth leakage test
• Check on heating and air conditioning equipment
• Check on swimming pool and related equipment
• Report on roof insulation type and quality
• Inspection of roof tiling
Living in Cyprus, Buying, selling and renting property by James Franklin is adapted from a publication of The Sunday Times co-written by the same author. It is available at major bookshops in Cyprus or directly from the publisher: James Franklin, PO Box 54359, 3723 Limassol. Tel: 99 524445. www.crocguides.com
Copyright © Cyprus Mail 2006
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