CYPRUS (Commonwealth Union)_When buying property in Cyprus, or in any country for that matter, it may be important to select a property-focused attorney. The worst possible mistake is to accept a purchase agreement with a developer (an all-too-common occurrence). Such agreements are typically quite prejudiced in favour of the developer and are unlikely to safeguard the buyer.
Additionally, consumers need to be cautious of attorneys who are not independent and are instead working for vendors or builders. This would be the same as choosing not to hire counsel.
The most crucial factor to take into account when purchasing property in Cyprus is a trustworthy attorney who is fluent in the language of the buyer and impartial of the other parties engaged in the transaction. These possible dangers can be avoided with the help of an excellent attorney. In conclusion, buying real estate is a significant investment that should not be made without consulting an experienced property lawyer.
Arguably the most expensive trap when buying real estate is hidden commissions that are agreed between an agent or middleman and the vendor (in most cases a developer). These commissions may be in the 5% to 50% range or higher. By hiring a respectable attorney who is willing to give prospective clients the necessary references, these charges can be avoided.
To properly budget for real estate transactions, it is critical to estimate the value-added tax (VAT) (i.e., 0%, 5% or 19%), transfer fees, stamp duty, legal fees, disbursements, and immovable property taxes that would be necessary. Developers and advisors in Cyprus frequently misunderstand and misrepresent VAT. Uniformed VAT election property buyers frequently discover that they have either high VAT liabilities or are unable to manage their properties as they would like.
While performing automatic due diligence, such as a mortgage check, is not required of lawyers, a good lawyer should always do so. In order to give a contract of sale priority over any pre-existing mortgages, the government enacted a specific performance law in 2011. However, in order to avoid any problems in the future, it is advisable to check to see if any mortgages have been placed on the property before purchase. Without taking the findings of these searches into consideration, a contract of sale cannot be appropriately drafted.
Furthermore, even if developers give official extracts from the Land Registry and other government agencies, buyers are cautioned not to rely on them to perform due diligence.
