Land is considered as one of the most valuable commodities, so its value is steadily increasing. Moreover, land investment is interrelated with high social and economic status, as well as, with financial stability and progress. Inflation, the instability of the monetary systems and restrictive fiscal policies of advanced economies are among the primary consequences of the recent economic crisis. Therefore, the investment in immovable property becomes highly attractive. Despite the fact that there is a moderation in property values in the short term, land prices have essentially shown stable growth in the long run.
Why invest in immovable property in Cyprus?
The geographical location of Cyprus between Europe, Asia, Middle East and Africa combined with the well-established legal, communications, banking and accounting infrastructures urge Cypriot and non-Cypriot business people to invest in immovable property. Cyprus joined the EU in 2004 and adopted the euro in 2008, two facts that facilitated the sale and purchase of immovable property in Cyprus. In addition to this, the demand for real estate investment increased. A primary advantage of the Cyprus legislation is the protection of ownership without discriminations. In other words, Cypriot and foreigners may enjoy all the rights associated with ownership of their property without any intervention from the State or other individuals. Furthermore, Cyprus maintains double taxation treaties with more than 40 countries.
Sale of Immovable Property Regulations:
The Sale of Land (Specific Performance Law) No. 81(I)/2011 provides the necessary protection to both purchasers and vendors.
On the one point of view, the law provides that a buyer of immovable property may safeguard its interests by submitting a duly stamped copy of the contract to the Cyprus Land Registry within six months from the date of its execution. Consequently, the provisions of the law impede the vendor from transferring the property elsewhere or charging it as long as the contract is valid and legally effective. In case the seller does not transfer the property, then the purchaser may apply to the Court for an order to transfer the property into his/her name.
On the other point of view, the provisions of section 15 of the law protect the vendor from any breaches of contract. For instance, if the purchaser is late in making a payment or refuses to pay the purchase price or any part of it, then the vendor may take legal actions against the purchaser. Prior taking any legal action, the vendor must send a written notice to the purchaser asserting that if the purchaser fails to pay within a specific time period, then the vendor will take legal actions against the purchaser.
According to section 3 of Law 81(I)/2011, in case the property is part of a jointly owned property, such as a flat or a percentage of land, and there is not a separate registration in the District Land Registry then all the property owners must duly sign a distribution statement. The signatures must be duly certified. Afterwards, the distribution statement will be submitted to the District Land Registry and it will enable the sale of the property. Note that the distribution statement will be taken into account upon the issuance of the title deed.
The Cyprus law firm Michael Chambers & Co. LLC may provide you with legal and administrative support on all the matters related to immovable property regulations and real estate. Our team of Cyprus lawyers may carry out, on behalf of you, all the necessary administrative, legal and bureaucratic procedures. Furthermore, our lawyers may assist you on all the matters related to contract law, immovable property taxation and real estate management. If you wish to consult one of our lawyers, in absolute confidence, then please contact us: [email protected]