RESALE: With or without title deeds.
There is a lot of talk about the property market in Cyprus, is it improving, worsening or 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 not impossible without.
When you sell with a title deed the procedure is more straight-forward, quicker and usually finalized 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 8-10 weeks. This delay is because of the Cyprus Civil service Beaurocracy and Banks that are not capable to provide services faster.
One 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. However you must be very careful and seek legal advice as there are lot of issues to check before you do so. That can be also detrimental for the buyer if the lawyer does not perform proper due diligence.
There is no need to involve your original 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 (for 2014 until today if these have not already been paid)
· Any outstanding electricity, water, municipality and any other utility bill.
· 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.
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.