Are you looking forward to purchasing a vacation home? If yes then you might surely be willing to invest in one at one of your dream destinations. Many people look to get a house on an island as it is one of the calming and relaxing places. One such place that allows you to buy your dream with ease is Cyprus. A house in beautiful Cyprus will surely make you proud but below given are some important things that you should consider.
Are foreigners allowed to buy property?
Before moving ahead to collect information on things like local regulations, rules, financing terms, and legal processes, the first thing that you should know is whether the country allows foreigners to buy the property. Many countries’ governments apply tight rules and regulations to buy property especially for foreigners. However, there are no such restrictions to buy a house in Cyprus.
Know about the local legal system
You might know that the laws of Cyprus are the same as English law. You can get an idea from the UK laws. So, the property purchasing laws are quite similar to rules and regulations in the UK. The entire procedure is more transparent and less stressful.
Reservation Deposit Agreement
After finding your dream holiday house in Cyprus, you should get into an agreement with the owner of the house and their representative. You need to sign on the reservation deposit agreement and need to pay the deposit. However, the deposit amount is not fixed; it can change depending on the type of the property such as apartment, villa, and duplex. But all house owners need to pay at least 1% of the purchase amount. This amount works just like a contract paper. Once the agreement has finished or in process, the property will be removed from the market list for a fix time period.
Do legal searches
When you are ready to sign the contract paper, your solicitor conducts legal searches and ensures that is no legal issue. He also checks the seller’s legal right and ensures that there are no dubious dealings or the property is associated with debt.
The contract of sale
Once your solicitor completes all necessary searches, then the process of the house sale will be ready for the ‘Contract of Sale’ step. In this stage, a person who wants to buy the house has a fixed time period in which he/she needs to pay the amount to the seller. After the full payment, the property ownership will be transferred to the new house owner.