Cyprus is generally safe for investment in the property provided that the prospective purchaser will follow some steps before signing a contract of sales and paying money.
1.Buy preferably a property with a separate title deed (document of ownership) free of any encumbrance.
2.Should you decide to buy a property with a separate title deed which is burdened with a mortgage or other encumbrance, you may sign a contract, but payment of the agreed amount must be made simultaneously with the release of the title deed from any encumbrance and the transfer of the title deed in your name.
3.Should you decide to buy a property without a separate title deed (from the plans and during construction works), buy preferably in a project where the Developer has not got any mortgages and obligations to the Bank on this Project.
4.Should you decide to buy a property under construction in a project already mortgaged to the Bank or any other organization, you may sign a contract but do not pay any money without having from the seller a waiver from the Bank or any other organization who has a mortgage in his favor for this Project. *Waiver is the document/undertaking of the Bank or other Organization who has a mortgage in his favor that your contract of sale has priority against the rights of the Bank regarding any mortgage in their favor.
5.Ensure that the text of this waiver is safeguarding your rights from the moment of signing the contract and paying money till the registration of the property in your name is free of any encumbrance.
6.Should you decide to buy a under-construction property, then preferably sign an obligation to pay a specific down payment and the balance to be paid according to the progress of the construction works.
7.Should you invest in Cyprus having in mind to apply also for Citizenship in a project which is under construction demand preferably that the payment of the required amount for the application for Passport is made into an escort account with two signatories from your site and the site of the Vendor and demand that the money will start being released once the approval of the Government letter on your application to secure a Passport is received and demand preferably that the money is released to the Developer according to the progress of the construction works.
8.Should you decide to make a significant investment in properties, you are advised to appoint two different property licensed valuers to carry out a professional valuation for the said properties.
9.The use of an independent lawyer to represent you is strongly recommended. However, all the above recommendations must be in your concern in parallel to the appointment of a lawyer.
Do you need an assistance? Contact Real Estate DOM. You can contact the company's specialists and get free advice and full transaction support for purchasing your new property in Cyprus.