Info for Sellers

Here we give you some information with regards to the selling of your property in Cyprus.

Title Deeds

The issue of title deeds is one that has made the news in many countries especially in the UK where most people are now aware of the problems.


When buying a off plan or new property in Cyprus there was no title deeds for the separate units sold , contract of sales where logged in the Land registry office and some years later Title deeds will be issued, unfortunately the time taken for title deeds to be issued could be as much as 8 years or more. Without the title deeds the owner will have to sign a cancellation agreement with the developer they purchased from so the new owners contract of sale can take theirs in the Land Registry office.


Developers in Cyprus are able to mortgage the land on which a development sits while selling the units on the land for full price, sometimes only when the title deeds are issued does the mortgage on the land get lifted.


New legislation is expected to speed up the issuing of title deeds, but at the moment it remains a problem for sellers and buyers alike.

Certificate of Final Approval

Before the Title deeds can be issued the property must have the certificate of final approval from the authorities in Cyprus. This will look at whether the construction falls within the limits set out by the building license. If the certificate has been issued then title deeds are more or less a formality. If the certificate is not available, for instance the developer has built too much covered area on the plot exceeding the building percentage, and then the certificate could be delayed indefinitely.

Bank Loans

Banks will look at the worthiness' of property in Cyprus based on the properties current state of certification. Property with no title deeds or certificate of final approval will need to have the original developer (Land owner) as guarantor. Without their cooperation no mortgage can be given. This effects the size of the group to which it could be marketed, and thus the price.

Properties with certificates of final approval but no title deed still need the developer's agreement but as deeds are imminent and thus more likely to attract buyers.

Properties for sale with title deeds are full assets and as such the best for mortgages, properties with title deeds are preferred with all buyers and are much more likely to be sold especially in times of financial crisis

Solicitors

The sale of your property should be a smooth enough procedure with or without title deeds, your solicitor should charge you no more than 1% up to 100000 Euro and less above this.

Tax Clearance

Tax clearance from the Cypriot authorities is required before the sale of property can go ahead. This tax clearance is related to any capital gains tax due and is normally done by your solicitor.

Electricity and water

Transfer of the main utilities can be done of the day of sale with a reading taken of the meter. The electricity authority can usually estimate your usage and give you a bill cancelling your account on the date of transfer

Additional Information

If you have any other questions about the sale of your property in Cyprus please contact us now for a no obligation quote.