Numerous property buyers, mainly due to insufficient information and proper preparation, find themselves wrapped in irreversible situations that end up in considerable loss. There is no reason for you to be among them. The following list contains nine must-do actions that guarantee a problem-free property purchase in Cyprus.
1. Know the Seller Well in Advance
Obviously, the buyer needs to know a few things about the seller well before making any transaction. Try to find as much information as possible from reliable, disinterested sources, including the seller’s credibility and overall market standing.
2. Learn More About the Area and the Property
Apparently, the buyer should pick the area based on his/her own criteria, something that presupposes a profound knowledge of the country and local market. For example, a buyer that wishes to find a serene retreat to spend his pension years must ascertain whether the area that caught his/her eye is quiet enough and will remain so in the considerable future; if, for instance, there are plans for the construction of a small airport nearby within the next decade, life can prove insufferable for him. So, do your best to collect as much information as possible about the daily life in the area, any possible future developments, sale prices etc.
3. Ascertain the Property’s Real Value
All that glitters is not gold, and nice looks or impressive photos does not always guarantee high construction quality. Hence, you must ascertain the property’s true value and condition.
The best way to do that, apart from checking thoroughly the property yourself and at different times of the day, is to hire professional real estate inspectors, probably an architect or a civil engineer. Additionally, regarding the technical terms of any given sale contract, the buyer must make sure all proper warranties concerning the construction quality, house equipment, electrical appliances, air condition units, pool engine rooms etc. are in order.
4. Conduct a thorough Research on the Property’s History
During the sale negotiations and discussions, you must ask the owner to provide you with all the necessary documentation regarding ownership, title deeds, town-planning permits, construction permit etc. You must also verify if the property is mortgaged.
5. Exemptions and Financial Warranties
In case the property is mortgaged against construction funding, ask the seller to ensure your exemption from any future financial burdens (waivers, Bank Guarantees) etc. Such documentation will afford you the legal power you need to tackle any possible future problems with the seller.
6. Payments During Construction
In case your contract provides for periodic payments based on the progress of the construction of the property, ask for an official certificate of construction completion by a civil engineer before transferring the money. You or a reliable trustee must keep an eye on the progress of the work.
Securitisation and licensing are a bit problematic in Cyprus. Hence it demands special care on your part. Make sure that the sale contract states the precise time of the issuance of the title deeds. Also, do care to be legally obliged to pay the full purchase sum only when the title deed is appropriately issued.
8. In Case the Title Deeds Are Not Issued
In case the issuance of the title deeds delays for a considerable amount of time, you must ask for a plain written explanation and plan of action for the resolution of the problem. If the seller refuses to cooperate, consult your solicitor.
Upon delivery, ask from the seller to provide you with a simple written agreement stating that, henceforth, he will stand by all related warranties, and will not make any financial claims whatsoever from the buyer in the future.
10. Seller’s Solvency
Without being easy enough, it is not even impossible for the buyer to check the solvency of the business / seller through various sources to clarify whether he is the right partner to buy the property or not. Although in Cyprus this profession is not governed by any regulation or legislative framework obliging land developers to undergo strict controls, there are ways to get to know the commercial profile of each entrepreneur / seller through society or the market. That's why it is always right for the buyer to look at the name of the business / seller at the market.
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