When you’re satisfied with the outcome of all checks and all necessary payments have been made, you can sign a sale contract with the vendor.

Many Cypriots don’t use a written contract for the transfer of immovable property. It’s legal to do without one and you may simply register the transfer at the Lands Office, provided there’s a separate title deed for the property. However, as a foreigner (and obligatorily when there’s no separate title deed for a property), you’re strongly recommended to sign a written sale contract and deposit it at the Lands Office, thereby placing a legal charge on the property, which means that the property cannot be sold to anyone else before you receive the title deeds, which may be months or even years later.

WARNING
The sale contract must be deposited with the Lands Office within two months of signing. If you don’t do this, the seller can change his mind and you will have little recourse!

If you’re buying a property on a development, the developer may have the title deeds to the whole development and it will be a long process to get hold of the title deeds for your particular property. It’s therefore particularly important for the sale contract to be deposited at the Lands Office until your title deed is issued.

SURVIVAL TIP
Deposition of the sale contract is the right of the buyer and non-registration doesn’t affect the validity of the contract, but it’s vitally important if you want to protect your interests until you receive your title deeds.

Your lawyer will deposit the contract on your behalf but these are the procedures and requirements:

• The contract must be deposited at the Lands Office in the district where the property is situated.
• The original is required for checking but will be returned to you and a copy retained by the Lands Office. Both the original and the copy must be stamped by the Lands Office.
• Form N34, stating both the vendor’s and the purchaser’s names, must accompany the contract.
• Any mortgages on the property must be declared (so that the lender can claim the property if you default on payment!).
• You must pay a fee of CY£1.
• You should then go to the local tax office (the Internal Revenue Department) and pay the stamp duty.

Conditional Clauses

Whether for new or for resale properties, sale contracts usually contain a number of conditional clauses that must be met to ensure the validity of the contract. Conditions usually apply to events out of control of either the vendor or buyer, although almost anything that the buyer agrees with the vendor can be included. If accessories, such as carpets, curtains or furniture, are included in the purchase price, you normally have a separate, simple agreement drawn up listing all the items.

Any fixtures and fittings present in a property when you view it (and agree to buy it) should still be there when you take possession, unless otherwise stated in the contract. There are many possible conditional clauses concerning a range of subjects, but the following are the most important:

• Being able to obtain a mortgage, although you should always obtain agreement from a lender before signing a contract;
• Being able to obtain planning permission for construction or renovation work;
• Being able to sell another property;
• That you obtain a satisfactory building survey or inspection (note that you’re responsible for organising this);
• That permission is granted by the Council of Ministers, if appropriate. Usually the contract allows for the sale of the property or a reapplication in the event of initial refusal.

You should discuss with your lawyer whether any of the above (or other) conditional clauses are necessary. Matters such as building permits and dependence on another sale should always be included, but take advice on other conditional clauses.

All conditional clauses must be approved by the vendor, and too many may make it impossible to conclude a sale! For example, a conditional clause that there should be no plans to construct anything (e.g. roads) nearby which would adversely affect your enjoyment or use of a property is unlikely to be accepted.

If any of the conditions aren’t met, the contract can be suspended or declared null and void, and the deposit returned. However, if you fail to go through with a purchase and aren’t covered by a clause in the contract, you will forfeit your deposit or could even be compelled to go through with the purchase.

Mortgage

If you’ve arranged a mortgage, you must declare it and register it at the Lands Office at the same time as you deposit the signed sale contract. You lawyer will advise you about this and collect all the required paperwork. He will need to complete a Contract and Declaration of Mortgage (N271) in triplicate and prove that all relevant duties and taxes, including utility bills if appropriate, have been paid. Most importantly, the title deed of the property under mortgage will have to be supplied to ensure that there are no other charges on the property. If the property has no separate title (e.g. a property on a new development), the developer must give the bank a guarantee; the cost of this is 1.8 per cent of the loan and you must pay it.

Moving In

If you’re buying a completed property, once you’ve signed the sale contract and paid all the required fees, you’re entitled to the keys and you may take possession of your property, even if you don’t yet have the title deed.