As a buyer, it’s essential to clarify certain points when buying property in Cyprus to ensure a smooth and successful transaction. Here’s a guide outlining the key points you should clarify:
- Title Deeds: Verify that the property has clear and marketable title deeds, confirming legal ownership and any existing encumbrances.
- Property Size and Boundaries: Confirm the accurate measurement of the property and ensure that its boundaries match the legal documentation.
Common Expenses: Some luxury projects can have common expenses at €8/sq.m. It is always good to know how much you will have to pay monthly for the upkeep of the property. Average price of common expenses in €1-2/sq.m.
VAT or Title Transfer Fee: For new property VAT can be up to 19% and usually price you see on the listing is without VAT. For re-sale properties, Title Transfer Fee is around 1.5-3% of the property price. By the way on INDEX we show those amount for each property on the listing page.
Planning and Building Permits: In you are buying a off-plan (before constructions have started) property, ensure that the property has the necessary planning and building permits issued by the relevant authorities, ensuring compliance with regulations.
Property Condition: Conduct a thorough inspection of the property to assess its overall condition, including the structural integrity, electrical systems, plumbing, and any potential maintenance or repair needs.
Utilities and Infrastructure: Confirm that the property has access to essential utilities such as water, electricity, sewage systems, and internet connectivity.
Legal and Tax Obligations: Clarify the legal and tax obligations related to property ownership, including property taxes, transfer fees, and potential capital gains tax.
Common Expenses and Restrictions: If the property is part of a complex or community, clarify the associated fees, rules, and restrictions governing the shared spaces or common areas.
Rental Restrictions (if applicable): If you plan to rent out the property, clarify any restrictions or regulations related to short-term or long-term rentals.
Furniture and Appliances: Determine if the property comes furnished, partially furnished, or unfurnished, and confirm the condition and quality of furniture and appliances (if included).
Maintenance Responsibilities: Clarify the maintenance responsibilities between the landlord (if applicable) and tenant, including who is responsible for repairs, regular maintenance, and utilities.
Access to Amenities: Inquire about the availability of amenities such as swimming pools, gyms, parking spaces, and other facilities associated with the property.
Access to Financing: If you require financing for the purchase, ensure that you have access to suitable mortgage options and understand the terms and conditions.
Sale Price and Negotiation: Confirm the agreed-upon sale price and any negotiated terms and conditions before proceeding with the purchase.
Deposit and Payment Schedule: Clarify the deposit amount required and the payment schedule for the property purchase.
Completion Timeline: Establish the timeline for completing the purchase, including the expected date of transfer of ownership.
Escrow or Trust Account: If possible, use an escrow or trust account to hold the deposit securely until the completion of the transaction.
Professional Advisors: Seek advice from qualified professionals, such as real estate agents, lawyers, and tax consultants, to guide you through the buying process.
Contractual Terms and Conditions: Review and understand all terms and conditions of the sales contract, including any special clauses or conditions.
Due Diligence: Conduct thorough due diligence to gather as much information as possible about the property, its history, and any potential legal or financial risks.
Communication Channels: Establish clear communication channels with the seller, real estate agent, and any other involved parties to facilitate a smooth transaction.
- Return on Investment: If you intend to buy an investment property it would be good if you had the ROI (Return on Investment) calculated so that you have a clear understanding of the income you will be generating from the investment. We recommend the following formula: (Monthly Rent * 12 months – 10% managing expences) / Property Price * 100% = Your Yearly ROI.
