RESALE: With or without title deeds.
There is a lot of talk about the property market in Cyprus; Is it improving, worsening or is it stagnant?
We have seen a lot of resales and we are currently very busy processing these. Resale’s can be facilitated, with or without title deeds. It is easier with title deeds, but it is possible without.
When you sell with a title deed the procedure is more straight-forward, quicker and usually finalized within a few days or within 2 weeks, dependent on your agreement. Without title deeds it can take longer, as there are other procedures which must be followed, but a resale is usually executed within 6-8 weeks.
The simplest way of resale without title deeds is via assignment of the original contract of sale. This basically means that the rights and obligations of the original contract of sale are assigned to the new purchaser.
There is no need to involve your original developer, (though sometimes it can be better to do this with the developer) although they must be informed of the assignment, and the costs are reduced with the out of pocket expenses limited to:
- Search at the land registry office and due diligence.
- Stamp duties for the contact of assignment (calculated according to the price of the agreement and based on the highest price (either the original purchase price or the new sale price)
- Assignment fees to the land registry office. These are calculated at 0.005% of the value on the agreement (5 euros for every 1000 as stated on the agreement)
- Stamps for the power of attorney.
- Immovable property taxes (from the Date of Delivery)
- Any outstanding bills.
- Any outstanding immovable property taxes, sewerage or municipal taxes due to your developer from the date of delivery of the property until 01.01.2014.
The simplified process is as follows:
A search is made at the land registry to check for any issues, such as loans or encumbrances on the property.
Once this is returned and any issues identified and resolved, A contract of assignment is signed by the existing owner and the new purchaser.
It is duty stamped
The application for the tax clearance is made.
Any taxes due and IPT due are paid.
Tax clearance is received.
Outstanding utility bills and other obligations are settled.
Contracts of assignment are duly deposited with the land registry. The deposition is simultaneous with the payment for the property by the new purchaser to the existing owner.
The new purchaser is then the owner of the property.
If you are interested in purchasing or selling a property, please do not hesitate to contact us and we will be happy to assist you.
G KOUZALIS LLC
169 1st April Avenue,
Paralimni 5402,
POBOX 34328
TEL: 00 357 238 11788
FAX: 00 357 238 11789
Email: lawfirm@cytanet.com.cy
Web: www.lawcyprus.org