Sale of Immovable Property in Cyprus

At Michael Panayides Law Firm, we specialize in real estate transactions, providing tailored legal advice to ensure a smooth and secure property acquisition or sale in Cyprus. Whether you are a local or international buyer or seller, our team is dedicated to protecting your interests at every step of the process.

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Sale of Immovable Property in Cyprus

Step 1: Ensure Legal Standing of the Property

• Confirm the ownership of the property (Is it owned by a legal entity, a physical person, or jointly owned?).

• Determine the type of property being sold: Are you selling shares of a company, a share of the property, a flat, house, plot, building, or an under-construction property?

• Verify the legal status of the property, including whether it has a separate Title Deed. In the case of a co-owned property, check if there is a Distribution Agreement in place.

• If the Title Deed is not available, verify whether the property is eligible for transfer and check for any encumbrances or pending legal issues.

• Obtain a Search Certificate with details of any encumbrances from the Land Registry.

• Ensure that all planning and building permits, as well as architectural plans, are in order.

• If the property is mortgaged or has any encumbrances (such as a memo or lien), disclose this information to your lawyer to assess available options.

  
  

Step 2: Set a Selling Price

• Research market conditions to determine a competitive selling price.

• If necessary, it is advisable to obtain a property valuation from a certified valuer.

• Consider negotiation margins when setting the price.

  
  

Step 3: Hire a Lawyer (Real Estate Agent is Optional)

• Hiring a lawyer is highly recommended to handle legal processes, draft agreements, and ensure compliance with regulations.

• If opting to hire a real estate agent, ensure they are licensed.

• The lawyer will assist with legal document checks, negotiations, and ensuring a smooth transaction.

  
  

Step 4: Conduct Due Diligence on the Prospective Buyer

• Once a prospective buyer shows interest, our Firms conducts due diligence checks on:

  • The source of funds of the Buyer.

  • The financial capacity and economic profile of the Buyer.

  • The VAT status of the property.

    
    

Step 5: Sign a Reservation Agreement (Optional)

• The benefits and implications of a Reservation Agreement will be discussed in a separate article.

  
  

Step 6: Sign the Sale Agreement

• The lawyer drafts the Sale Agreement, detailing:

  • Terms and conditions of the sale.

  • Payment schedule and obligations.

• The buyer typically pays a deposit (10-30%) of the purchase price.

• Both parties sign the agreement, and it is stamped at the Tax Office by the Buyer.

  
  

Step 7: Submit the Sale Agreement to the Land Registry

• The signed contract is lodged at the District Land Registry Office by the Buyers and takes a ΠΩΕ no.

• This protects the buyer’s interest and ensures that the seller cannot sell the property to another party.

• The importance of submitting the SalesAgreement to the Land Registry will be discussed in a separate article.

  
  

Step 8: Obtain Necessary Tax Clearances

• Provide electricity consumption records to verify that the property was unoccupied (to avoid taxation on rental income).

• Secure Form E313, duly signed and stamped by the Tax Department.

• Settle any capital gains tax obligations, if applicable.

• Pay all necessary clearance fees from:

  • Water Board

  • Sewerage Board

  • Municipality

  • Any other relevant authorities.

    
    

Step 9: Submission of the documentation to the Land Registry

• Once all documentation is completed, a submission is made to the Land Registry, followed by an appointment for examination and processing.

• Upon examination, the Land Registry will schedule an appointment and the final stage involves the transfer of ownership of Property and issuance of separate title deed.

Step 10: Transfer of Title & Final Settlement at the Land Registry

• Simultaneously, upon receiving the banker’s draft (final payment – the most common method of payment) at the Land Registry, the seller shall:

  • Hand over the keys to the buyer.

  • Provide any receipt for any outstanding dues, such as:

    • Common expenses.

    • Other payments.

• The Title Deed is officially transferred to the buyer.

  
  

Step 11: Final Administrative Tasks

• Cancel any standing orders or direct debits related to the property.

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At Michael Panayides Law Firm, we offer comprehensive legal representation throughout this process. Through a Power of Attorney (specific or general), we can act on behalf of our clients, ensuring a smooth transaction without requiring their physical presence in Cyprus.

Our services also include:

• Liaising with authorities, including the Tax Department, banking institutions and Land Registry.

• Providing continuous updates via email, keeping clients informed at every stage.

• Setting up a sub clients account

 For professional legal assistance in  selling property in Cyprus, contact Michael Panayides Law Firm.

• Expertise in Real Estate Law – Decades of experience in handling complex property transactions.

• Tailored Legal Solutions – Each case is assessed individually to provide personalized legal support.

• International Client Assistance – Specialized services for non-residents looking to invest in Cyprus.

• Transparent & Efficient Process – Full legal guidance with clear, step-by-step communication.

• All client information is handled with strict confidentiality and in compliance with GDPR regulations.

Disclaimer: This article is for informational purposes only and does not constitute legal advice.