LEGAL TIPS PRIOR TO PURCHASE:
* Prior to purchase, always: Ask a copy of the title
deed
* Check the sheet plan - plot references and the site
plan,
* Look at the site plan and ascertain from its boundaries
its shape and boundaries,
Check the construction availability
(from State Planning Office)
* Make a land search to understand; if there is a deed,
the kind of the title deed and whether there
is any encumbrance on it (from Land Registry),
* Always make a contract before making
any payment.
ONCE A PROPERTY HAS BEEN DECIDED UPON
After deciding on a property you may wish, a land search
should be made and subsequently a contract should be
signed with the vendor. It should be noted that according
to Property Purchase (Foreigners) Law and the related
regulations, Law No: 109, Foreigners' purchase is limited
to one donum (donum is a measure of land equivalent
to 1600 square yards, 1,338 sq. meters or 14,400 sq.
ft., 0.336 acre) of land (unless you form a company
or constitute a trust with a local person). A permit
to purchase from the Ministry of Interior is then applied
to get the permission to purchase. This may take between
six and eight months. Once this permit has been issued,
remaining balance is then paid to the vendor. After
the issuance of the permit, Purchaser is entitled to
register his/her name to the land registry as registered
legal owner. Purchaser would then need to be in Cyprus
to sign the relevant papers; the change of ownership.
In case where the Purchaser is not at Cyprus at the
time of the transfer, a power of attorney may be issued
on behalf of Purchaser's local counsel and transfer
may be executed in this way.
A purchase tax is applicable on all freehold property
at 6%, in addition a 1% charge of the 6% is also applicable
which is paid to the municipality where the property
is located.
A purchase tax is applicable on all freehold property
at 6%, in addition a 1% charge of the 6% is also applicable
which is paid to the municipality where the property
is located.
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