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Purchase off plan (New construction)
When one has found a property which feels right, the next step is placing a reservation fee which is normally around 30,000 SEK (3,500 Euros) at which point the seller removes the property from the market. IF ONE CHANGES ONES MIND AT THIS POINT, THE MONEY IS GONE! Then one must decide either to pay in cash or to take a loan. If one is not a resident in Cyprus, a loan up to 70 percent of the property value is normally given (up to 80 percent for certain properties).
Thereafter, a purchase contract should be established. If the buyer does not want to hire a solicitor, the seller can establish the contract but is recommended that the buyer has a solicitor as to control in the property registry that the property does not have mortgages or other BELASTNINGAR. At the establishment and signing of the contract, the buyer should normally pay 30 percent of the purchase cost. The solicitor deposits within two months the contract at the property registry. One knows that the deposit has taken place through the stamp that the buyer recieves on the contract from the property registry. The buyer is then protected and the seller cannot resell or mortgage the property. This is called Specific Performance. This procedure has been introduced to protect the buyer before the Title Deed has been granted.
In connection with this, one is to pay a stamp fee that is 0,15% - 0,2% of the purchase price. The Title Deed is to be paid after one has recieved the Title Deed, that is to say 3-4 years after the purchase and it is based on the propertys' market value. The Title Deed fee is based on the propertys' market value according to the following in Euros:
Market value up to €85,430: 3%
From €85,431 ro €170,860: 5%
Over €170,861: 8%
Most often, the remaining payments follow the construction process ie. 20% when the structure is finished, 15% when the walls are finished, 15% when the floors are finished and the remaining 20% when the property is completed and delivered. One should during the construction process visit stores together with the building representative and choose tiling, kitchen, doors, toilets, shower, bathtub etc. Normally, white goods are not included in the price. One advantage with an off plan purchase is that one can influence the interiors and choose what one wants for the kitchen, bathrooms, etc. Another important advantage is that once the property is finished, the market value is usually higher than that paid. The downside is that one must wait a couple of years until the building is complete. The procedure is the same whether one purchases an apartment or a villa.
Resale purchase
These properties are usually delt with by real estate agents. An entry into the land registry usually exists if it is an older property and Specific Performance is not necesary. The solicitor, not the real estate agent, establishes the contract. The reservation fee is paid and the remaining sum is paid at the signing of the contract either by a part loan of maximum 70 percent if one is not a resident of Cyprus or 80 percent if one is a Cyprus resident. The property is sold in existing condition. The repayments by installments is 15 to 40 years. A limitation for the loan exists when one becomes 70 years old. One can borrow for a maximum of 20 years if one is 50 years old and so on. Sometimes the bank requires that the buyer takes a life insurance policy with the bank as the beneficiary. The interest is usually 5 to 6 percent plus fees. It is the solicitor who controls the property registry, who has the Title Deed, or if there are any mortgages on the property. Before one takes possesion of the property, it must be insured. The stamp fee must be paid within 30 days of the signing of the agreement. It is usually the solicitor who takes care of this. With the stamped agreement in hand, one should visit the electric and phone companies to enroll their services. Usually the seller will assist in doing this.
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