Factors to Consider When Investing in Property in Cyprus

Buying property in Cyprus can be a daunting task, even with the help of a real estate agent or a lawyer. To ensure that the transaction is legal and to avoid any issues during subsequent stages, it is recommended to compile a list of questions to ask the property seller. This is especially important if you are a first-time buyer in Cyprus.

Working with a reputable real estate agent, such as TAYSMOND real estate agency in Cyprus, can provide guidance and direct assistance throughout the process. Attempting to handle all the paperwork yourself can be time-consuming and confusing, especially if the documents are in a foreign language. Purchasing property in Cyprus as a foreign national involves some nuances that may be difficult to navigate alone.

At TAYSMOND agency, our specialists can assist you in compiling a list of questions to ask the seller or a real estate development company. These questions can help you determine the property's condition, history, and any potential issues that may arise in the future. With the help of our experts, you can confidently navigate the process of buying property in Cyprus.

Property Ownership Rights

The very first task is to verify the ownership documents. However, there are several additional questions to ask:

Is it a new or resale property?

How long ago did the property change hands?

How was it acquired (inheritance, purchase, mortgage, gift)?

Who was the previous owner (if such information is available)?

Title Deeds in Cyprus

Title Deeds is a document that confirms property ownership and contains all relevant information about the property. Typically, when purchasing a new property in Cyprus, obtaining a Title Deed is not an issue as the developer takes care of the paperwork and hands it over to the new owner.

With resale properties, the process can be more complicated. Transferring ownership to a new owner may take up to several months, especially if the seller recently acquired the property and the Title Deed is still being processed. When buying a property in Cyprus, it is recommended to work with a lawyer who can help you verify the property's title and guide you through the process of obtaining the title deeds. Your lawyer can also advise you on any potential risks or issues related to the property's title.

Encumbrance

Property encumbrance is a term that refers to any legal or financial claim against a property. This could include mortgages, liens, or other debts that are tied to the property. It is important to understand property encumbrance when purchasing real estate in Cyprus, as it can impact the transfer of ownership and lead to unexpected financial obligations.

In Cyprus, property encumbrances are registered with the Land Registry Department. Before finalizing a property purchase, it is crucial to obtain a Land Registry search to ensure that there are no encumbrances registered against the property. This search will reveal any mortgages, liens, or other financial claims against the property and provide a clear understanding of its legal status.

If you discover any encumbrances during the Land Registry search, it is important to address them before proceeding with the purchase. This may involve negotiating with the seller to clear the encumbrance, or in some cases, seeking legal advice to navigate the situation.

Remodelling

Property remodelling or renovation is a common practice among homeowners in Cyprus. Many people choose to remodel their properties to improve functionality, increase space, or enhance the aesthetics of their homes.

Before embarking on any remodelling project, it is important to understand the regulations and permits required by the local authorities. In Cyprus, any structural changes to a property require approval from the Planning Authority. Failure to obtain the necessary permits can result in legal issues and financial penalties.

It is also important to work with licensed and experienced contractors who have a thorough understanding of the local building codes and regulations. They can help you navigate the permitting process and ensure that the remodel is completed in compliance with the law.

The property owner will have the relevant documents. If there are no documents, it is better to refuse the transaction. Otherwise, one may face a hefty fine and a series of legal proceedings.

Outstanding Debts

Debts, not only for utility bills, can be checked in the database or through the management company. If there are any debts, the seller has to pay them prior to transferring property to the new owner.

Existing tenants

If a property in Cyprus is being sold while it is also being rented out, it is essential to make sure that tenants are willing to vacate the property or to resign the tenancy agreement. 

Drawbacks of the property

When buying property in Cyprus, it's crucial to investigate potential drawbacks to avoid costly surprises down the line. One of the most common issues to investigate is construction defects. Here are some potential property drawbacks related to construction defects to investigate:

Water Damage: Check for any water stains on ceilings, walls, or floors, as these can indicate water damage. Be sure to also investigate the source of the water and ensure that it has been properly repaired.

Foundation Issues: Look for any cracks or settling in the foundation. These can be signs of a serious structural problem that may be costly to repair.

Roofing Problems: Inspect the roof for any signs of damage, such as missing or broken tiles, leaks, or other issues. Replacing a roof can be a costly endeavor, so be sure to investigate thoroughly.

Electrical and Plumbing Systems: It's important to have the electrical and plumbing systems inspected by a licensed professional to ensure they are up to code and functioning properly.

Mold and Mildew: Check for any signs of mold or mildew, which can indicate a moisture problem. If left untreated, mold and mildew can cause health issues and structural damage.

Meeting neighbors

Knowing who your neighbors are is a very important aspect, especially if you are looking for an apartment. It is recommended to find out who lives in the apartment next to you, if they have children and pets, how many renters there are, and how well they maintain cleanliness.

Energy efficiency 

Ask about the energy efficiency rating of the building and the size of the utility bills (in summer and winter). An "A" rating means that you will pay very little for electricity, as the complex is almost self-sufficient in terms of electricity.

The condition of the utilities is also important. If you are buying a second-hand property, be sure to ask when the wiring, pipes, plumbing, and gas equipment were last checked and replaced. Assess the utilities visually, and if the building is old, it is better to invite a specialist to give a competent opinion.

Also, ask about the management company's performance: how quickly they respond to residents' inquiries, how active they are, and whether they organize any events, etc.

Heating

One important issue for Cyprus is the availability of heating in apartments or houses. Villas often have their own system, and the buyer needs to find out how it works and how much it costs to maintain it. It's also worth asking how long it has been in operation and when it was last serviced.

In apartments, underfloor heating or split systems are usually used. In this case, it's also worth asking about their efficiency and operation principles, as well as getting an idea of the payments during the cold season.

Infrastructure

Take a walk and investigate all the necessary infrustructure. These include grocery stores, gas stations, playgrounds for families with children, kindergartens, and schools.

Parking 

In modern complexes, private parking spaces are provided for one or several cars. If you own an electric car, check for special charging devices installed or charging stations nearby.

Are you interested in buying property in Cyprus? Contact TAYSMOND real estate experts who will help you make the right choice!