With the growing interest in real estate in Cyprus, it is important to be aware not only of the features of the market but also of the risks involved. One of the key aspects is choosing a reliable developer. Here are 10 proven ways to do your due diligence before making such an important investment.
Examine the reputation of the developer
Undoubtedly the long-term reputation of a developer can tell you a lot about their quality and reliability. An important feature of Cyprus: as a rule, a developer working for years in a particular city, has not only a solid base of local clients but also a powerful knowledge of the geographical features of the building plots, the procedures for working with each municipality, and so on. So, pay attention to the date of the company's foundation and its history. In addition, check reviews and recommendations on forums, social networks, and professional platforms. Take into account that sometimes comments and reviews on the Internet are excessively emotional, which does not always reflect the real state of affairs. Evaluate such reviews as calmly as possible. There are more and more good foreign developers ready to share their experiences on the island!
Analyze past projects
Research the previous projects of the developer. Not only the most popular presented in the first lines of their website, but also other works. Pay attention to the quality of construction, compliance with deadlines, and overall customer satisfaction. As an option, you can come to the site yourself and inspect the building, parking lot, adjacent territory. In Cyprus, the requirements for the quality of construction over the years have changed for the better, nevertheless, a building that is 10-15 years old should not fall apart before your eyes.
Check the legal clarity
Make sure that the developer has no unresolved legal disputes or legal problems. This can be checked through legal databases or with the help of a lawyer. It is an expensive endeavor, but well worth it. Even very popular real estate developers can have a problematic project that may be extremely attractive with moderate prices. For example, this can happen due to a change of construction crew at a certain stage of construction, a decrease in the quality of building materials, an architect's mistake, and so forth.
Financial position of the company
Financial position of the company
Check the financial statements of the developer. A stable financial position is a sign of reliability and ability to complete the project. If the reports are not available on the website, you can ask the management for the documents. The most reliable companies work as transparently as possible and never hide the financing arrangements of each project. Minimize the risk of buying real estate built with developer's funds, not on credit.
Licenses and permits
Make sure the developer has all the necessary licenses and permits. This includes permits for the construction and operation of the property. In Cyprus, upon completion of construction, the property is accepted by a specialist from the municipality and only then is the official certificate of ownership - the Title deed - issued. In this case, each municipality works differently: some faster, some slower. It is worth paying attention to this when buying a new building at the off-plan stage.
Checking the contract
Before signing the Purchase and Sale Contract, it is important to carefully study all its conditions and if necessary to consult a lawyer. Each clause should be clear and understandable. Check the quality of the materials used and whether you can sell the object yourself at a certain stage of construction.
Communicating with other buyers
Talking to people who have already bought or are considering buying real estate from this developer can provide valuable information. Of course, people can be overly emotional, and who knows what mood they are in today, but in general you will get the necessary information. By law, builders give at least a one-year warranty on a new building. But sometimes a building needs more time to "settle". In this regard, companies that not only build but also professionally manage real estate are good.
Visiting construction sites
Personal inspection of the objects under construction will help you to assess the quality of construction and compliance with deadlines. Of course, these objects are closed, but no one prevents you from coming and observing the construction site from outside. It takes a lot of imagination to visualize the future home, but remember the main thing: you are evaluating the construction phase, not the result.
Check partnerships
Information about partners and contractors of the developer can say a lot about his professionalism and reliability. Among the developers, there are many very good masters of their craft. Therefore, it is quite normal that will cooperate with many professional partners. And they can be not only local but also partners from abroad.
Professional consultation
Finally, seeking professional advice from real estate and legal professionals can help you avoid potential risks. Feel free to ask questions on any topic. Whether it's the financial side of a future transaction for a foreigner from a particular country or the integrity of real estate developers. You have every right to have all the information you need.
Carefully checking the developer before buying a property in Cyprus is a key step to ensure the safety of your investment. By following these guidelines, you can significantly reduce your risks and invest confidently in your future on the island of Aphrodite.
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