Purchasing an immovable property is a process which requires careful handling by the purchaser, in order to avoid any unpleasant situations. Here is some basic information one should know before beginning the process.
There are three ways to purchase immovable property: with immediate transfer of a certificate of registration (title deed), through a sale contract (SLC), or from a current purchaser (not an owner) through assignment of a sale contract.
In the process of selecting the right property, the interested purchaser should look into all the rights and restrictions related to the property in question. The more information the prospective purchaser has at their disposal, the better decision they will be able to make.
The certificate of registration of the property should be requested. Having a title deed for the immovable property ensures its registration in the land register of the Department of Lands and Surveys (DLS). For complete information, a recent certificate of registration should be requested from the seller, which contains important information regarding the type and current condition of the property.
In the absence of registration, the interested purchaser needs to investigate further and possibly seek the advice of a real estate expert.
Ask the seller to provide you with a search certificate of the property. Search for all the characteristics of the property you are interested in on the Department of Lands and Surveys Web portal (DLS Portal). The characteristics of all properties are available to the public free of charge. Moreover, at the DLS Portal you can find a video explaining how to search for them.
Make sure you find out the following:
Whether the immovable property is registered and whether it really belongs to the seller
The registered area of the property
If there are any encumbrances, such as a mortgage, memo (an encumbrance created after the registration of a court decision), court decision to sell the property, any other deposited sale contract and anything else affecting the property
If there are any personal prohibitions against the registered owner, such as an order of bankruptcy or dissolution of a company, an order prohibiting the owner from selling the property and so on
If there is legal access to the property or if it is enclaved
Whether any public stream, pathway or river passes through it
If the property is affected by compulsory acquisition
From the relevant planning authorities whether the property is affected by any development, such as a new road
If there are any other notes, or commitments, or restrictions on the property
If there have been any interventions by third parties, by local inspection of the property
If the registered area of the property corresponds to its actual area
The town planning characteristics of the property, so that you know the development and use rights of the property.
Regarding the purchase transaction, make sure you know whether it is subject to value added tax (VAT). Ask the seller whether VAT should be paid and at which rate. The seller should know in advance, after consultation with the tax department whether the sale property is subject to VAT.
Make sure you know the amount of transfer fees you as a purchaser will have to pay to the DLS when the property is transferred to your name.
If there is a building on the property, then you should verify its legality and whether there are any planning, building or other issues outstanding.
Make sure that the building has a certificate of approval, and whether it is with or without notes, or other restrictions or prohibitions.
Ask if the property is subject to any town planning conditions, or if there are any unfulfilled obligations that may trap you in lengthy procedures.
Make sure you know which planning zone the immovable property belongs to and the detailed planning zone regulations that apply.
A new unit under construction (apartment, house or shop) or a plot being developed, cannot be registered and cannot have a certificate of registration (title deed). For registration in the Department of Lands and Surveys (DLS) register to take place, a completion of works certificate needs to be issued by the supervising engineer, and a certificate from the competent building authority. If the construction or development has been completed, but no certificate of registration has been issued, you should find out why this is the case.
Any decision to purchase an immovable property should be made while taking into account all aforesaid criteria.
It is important, once you have completed research, and once a final decision to purchase the property has been made, and there are no financial or other outstanding issues, that you proceed with the immediate transfer of the certificate or registration (title deed) to you.
If you decide to purchase the property, but there are financial or other outstanding issues, it is recommended that you proceed with a sale contract (SLC) with the seller, which should be deposited at the DLS, as indicated in a separate information leaflet.
If you decide to purchase a property through an assignment agreement from an existing purchaser who has signed a SLC make sure you check, as the assignee of the assignment agreement, whether the SLC has been deposited at the DLS, and whether the seller has any outstanding debts, as well as any encumbrances prior or subsequent to the SLC.
You are advised not to pay the full purchase price of the property before the transfer of the certificate of registration in your name.
Source Cyprus Mail
With thanks Antonis Loizou & Associates EPE – Real Estate Valuers, Estate Agents & Property Consultants, www.aloizou.com.cy, [email protected]
