| There has been some news lurking out there and | | | | reply quickly, if it is not also snowed under as well, |
| it only just surfaced for unwary property | | | | then if you discover a mortgage then you can |
| purchasers in Cyprus. But there is no need to | | | | insist that it is removed before you sign a |
| worry. | | | | contract. Then your lawyer registers your |
| It came out publicly rather suddenly in a phone in | | | | Contract for Sale within 60 days. |
| programme on CyBC (Cyprus Broadcasting | | | | But then it appears that it is perfectly legal in |
| Corporation) Radio 2 on 16 November 2006. | | | | Cyprus Law for the vendor to go back to the |
| There are various maxims which lull property | | | | bank and get another mortgage on the land |
| investors in Cyprus into a false sense of security | | | | because technically the vendor still owns it |
| with statements, for example, like the Laws of | | | | because the title has yet to be transferred!! But |
| Cyprus are very similar to the UK. | | | | there is no need to worry. |
| There are similarities, for example, in terms of | | | | That ranks AFTER your Contract for Sale and |
| the principles of the law of contract and there is a | | | | whilst there are concerns that any sale procceds |
| Land Registry but that is as far as it goes. | | | | over and above the amount stated in the |
| Hopefully you hire a good independent lawyer but | | | | Contract for Sale are swallowed up by the |
| sometimes buyers find someone who is just not | | | | subsequent mortgage, this is NOT SO according |
| good enough and many do not have indemnity | | | | to a leading Cypriot Lawyer who I have consulted. |
| insurance either if it all goes wrong. | | | | You keep all the sale proceeds. Barring tax and |
| The other maxim is that once your Contract for | | | | fees, of course !! |
| Sale has been stamped within 30 days and lodged | | | | But there are solutions if you want to keep clear |
| by your lawyer with the Land Registry you are | | | | of any uncertainty. |
| safe under the principle of Specific Performance. | | | | Make sure there is NO clause like this in your |
| It is a legal device, unique to Cyprus, which | | | | contract; |
| requires the vendor to deliver the title deeds to a | | | | "also the vendor has the right to mortgage the |
| purchaser. Eventually that is. | | | | above plot but he has the responsibility to release |
| Unfortunately due to the vast number of land and | | | | the flat from any mortgage when the title deeds |
| property transactions that have taken place in the | | | | will be ready" |
| property boom in Cyprus over the last 5 years | | | | But rather one which precludes further mortgages |
| the authorities cannot cope with the need to split | | | | under penalty !! Yes I am serious. That should |
| land into divisions relating to one dwelling and there | | | | stop it |
| are delays of 2/3 years and even longer; | | | | Best thing is to insist on buying the land first and |
| sometimes never ending. | | | | get concurrent delivery of the Title Deeds if you |
| The first jeopardy is a first mortgage to a bank | | | | are buying offplan or if a resale that title will be |
| for either the purchase of the land by the | | | | transferred to you with title deeds on your |
| developer or to finance the building. If your lawyer | | | | purchase. You have been warned. |
| does the searches and the Land Registry can | | | | |