Purchasing your property

Quote:

I wrote this article out of personal experience.

The first thing to do is obtain the services of a lawyer who is registered at the Cyprus Bar.

You should not use a solicitor who has been introduced or recommended to you by a vendor, agent or developer.

Developers

Property Developers as firms or companys are not always dual hatted as developers AND registered building contractors. Developers employ Architects, Structural engineers sometimes as employees but also as firms in their own right on a sub contracted basis. The same is true of building contractors who are not always divisions but seperate firms that work is contracted to by developers.

Many property development companies act as an entrepreneur for acquiring land in prime locations for property type mix and design having researched demand and then contracts an Architect for the design required by the entrepreneur with a structural engineer etc., He is simply a business man at the top of the “food chain”. But there are good development companys and poor ones. One should look at the principals and their experience in business and property, financial standing of themselves and the company and their contractors. The real key to avoiding failure for the purchaser is to follow through to the Qualified Architect, Licenced Structural Engineer, Licenced Building contractor etc.,
Legal Preliminaries

Instruct your lawyer to carry out a Title search. This will establish whether or not there’s a mortgage or other claims outstanding against the property.

Unlike the conveyancing process in the UK, there is no requirement on the present owner to clear the mortgage before selling the property. Should the owner fail to clear the debt, the creditor(s) can pursue any claims they have against the property, which may be enforced in a court of law.

For obvious reasons, buying land or property in Cyprus that is mortgaged, or that is subject to some other encumbrance, charge or burden is not recommended as you could end up with nothing.

Instruct your lawyer to carry out a plan search and advise you of any developments planned in the immediate area of the property you’re thinking of buying.

If you’re buying off plan, instruct your lawyer to check that Planning Permission for the property has been granted and a Building Permissions Permit for its construction has been issued.

Construction

Always inspect properties under construction. Insist on viewing earlier properties that the developer has built and speak with their owners about the quality of work and after-sales service. Also, don’t rule out a developer just because he hasn’t got impressive offices, “glossy” brochures or fluent English speaking staff.

Ask for a set of specifications and list of fixtures and fittings included in the advertised price, the size of the plot and the size of the property.

Do not sign the contract until you have agreed on the fixtures and fitting, number of electrical outlets, tiles, worktops, etc. Once you’ve signed the contract, do not make any changes.

Instruct your solicitor to include a clause into your contract that caps the contract cancellation fee at a reasonable level, say CYP 500.

Remember that there’s no contract cooling-off period – once you’ve signed for the purchase you are committed.

If you are buying aproperty on a complex, you will most probably have to contribute to the costs of insuring and maintaining the common areas.

Cyprus Property Help & Advice Centre™ ® ©
The Black Art of Buying Property in Cyprus™ ®
The Cyprus Informer™ ® ©
http://cyprusinformer.eu