Estate agents
In Cyprus the vast majority of property sales are handled by estate agents, particularly those where non-resident buyers are involved. Therefore, it is highly advisable to hire the services of an estate agent if you want to buy property in Cyprus. As Cyprus is a small island, many agents have property listings covering all the popular areas and are knowledgeable about the entire island. This should make the whole process easier for you. The language barrier should not worry you since all Cypriot estate agents have staff who speak English alongside other foreign languages.
Registered agents
Cypriot estate agents are strictly regulated by law and must be professionally qualified and registered with the Register of Estate Agents. Always ask for an estate agent’s registration number and have it checked, if they are not, then you’re strongly advised not to use their services. Once an agent is registered, they may choose to be a member of the Cyprus Real Estate Agents’ Association (CREAA) which closely monitor those who work as estate agents, property consultants, or property finders. Although this isn’t compulsory, most bona fide agents are members of CREAA and it is recommended that you use the services of a CREAA member. For instance, if you have a dispute with a member, CREAA will intercede on your behalf.
Fees
In Cyprus a real estate agent’s commission is usually paid by the vendor (although they will ‘include’ this in the price). The commission charged is normally at least 3% of the selling price (plus VAT at 19%), and the usual fee is 5% (plus VAT).
Foreign agents or marketing companies located abroad often work with local agents and share the standard commission, so buyers usually pay no more by using them. However, check in advance whether this is the case and how much you will be required to pay. When buying, also check whether you need to pay commission or any extras in addition to the sale price (apart from the normal fees and taxes associated with buying a property).
Viewing
Usually, property viewings are carried out personally by agents so you won’t be expected to deal with tenants or vendors directly. You should always make an appointment as agents need to ensure that the property is available for viewing and that someone is available to show you around. If you’re on holiday, it is acceptable to visit an agency unannounced to have a look at what’s on offer but don’t expect to view properties without an appointment.
Legal advice
Anyone planning to buy property in Cyprus should seek expert legal advice. The relatively small cost of legal advice - in comparison to the cost of a home - is excellent value for the peace of mind it provides. Never sign anything or pay any money until you have sought legal advice from a lawyer experienced in Cypriot property.
The only professionals legally qualified and permitted to give legal advice in Cyprus are lawyers, so don’t take legal advice from elsewhere. A highly commended lawyer who has been recommended or suggested to you will be the best option. Before consulting them, ask the lawyer if they are registered under the Cyprus Bar Association as this is compulsory. To do so, you can check the member list on the website or phone the association providing the lawyer’s name. Most Cypriot lawyers speak English and many deal principally with foreign homebuyers.
Checks
There are some procedures that you should ask your lawyer to carry out before you buy a home in Cyprus. Make sure via the Lands Office that the vendor is the legal owner of the property and that there are no debts relating to it, such as a mortgage. If you’re buying a new property or one that is currently under construction, confirm that the vendor has obtained the agreed Town Planning and Building Permits required. A developer may tell you that there are no separate title deeds for your apartment or house. This means that the title deeds cannot be transferred to your name until the whole development is finished. The sale contract must then be worded in such a way that the vendor is legally committed to selling you the property and that your property is protected until such time.
Find out if there are any co-owners and if so, ensure that they sign the sale contract. In most cases there will be co-owners of property and land in Cyprus and they must all sign your sale contract to avoid any future disputes. Finally, double check that your sale contract is stamped and registered by the Lands Office.
This article is adapted from Buying a Home in Cyprus from Survival Books.