Buying A House In Cyprus - The 10 Steps You Need To Take by Elaine Berry

The tiny Mediterranean island of Cyprus has an appeal out of all proportion to its size. Especially for English speakers looking to buy an overseas property - for investment, retirement, holidays or holiday rental - Cyprus seems to come near the top for choice.
So what is the special appeal of buying a house in Cyprus? Many people find it combines ease of living with a special quality of mystery and beauty - and of course a gorgeous climate. Because the island underwent some decades of British rule, English is widely spoken, which makes it easy for English speakers to move to. At the same time, its almost unearthly beauty, combined with its history stretching back thousands of years and its connection with ancient myths and legends, provide a magnetic attraction for visitors.
But what's involved in buying a house in Cyprus? Well, it's not especially difficult, but there is a procedure you have to go through. (This process of course applies to the Republic of Cyprus, which excludes Northern Cyprus where the legalities are quite separate.)
So these are the main steps you need to take to purchase your property:
Every foreign national has to obtain approval from the government before buying a house in Cyprus - specifically from the Council of Ministers. This can take 8-14 months so you would be well advised to begin the process before you even start choosing your property.
Get a lawyer. It is not a good idea to try to do without and there are good bilingual lawyers in Cyprus - if in doubt, ask for a recommendation from expatriates in the area.
Once you have received your approval from the Council of Ministers, and have identified your property, you have to sign the preliminary contract, and post a holding deposit with a notary or with your lawyer. The deposit can be as little as 1 percent of the purchase price.
A secondary reservation deposit agreement will then be executed and the property will be taken off the market. As long as you stick to the agreement, it won't be put back on the market again.
The lawyer will then investigate the title through the District and Registry Office.
Meanwhile you need to obtain your financing. Probably the easiest way is to finance through a bank in Cyprus. Most banks are quite westernized and will accommodate US and UK mortgage clients. Alternatively you may wish to refinance your existing home, or in the case of a new build the developers may offer their own mortgage facilities. Some people of course want to sell up in their home country and move to Cyprus to live. If you are doing this, you are very likely to find that the proceeds of your home are more than enough to cover the cost of buying a house in Cyprus.
Once the lawyer's investigations are completed satisfactorily and you have your finance in place, the parties can move to the final contract stage. When this is signed by the parties it is filed with the Land Registry Office.
If one of the parties is a Cypriot, an application then has to be made to the Central Bank of Cyprus to approve the transfer of funds for the purchase of the property. If both parties are foreign nationals, this is not necessary.
If the property is not new, the title will be transferred to you and you are now the owner. If it's a new build, the title will not be transferred for three years, though you are fully protected since the final contract is filed with the District Land Registry.
Relax and enjoy your holiday or retirement home. You can get by with speaking English, but if you can manage to learn some modern Greek you will find your experienced greatly enriched.
Buying a house in Cyprus is easier for foreigners than in many countries and is highly worthwhile in terms of both enjoyment and profit. One word of warning - some people are tempted to try to do private deals without bothering with the legalities or getting a title deed. Don't even think about it. Not only could you get into trouble, but you could lose all your money as your property will be unsaleable. Be patient and stick to the law - it's well worth it.
Elaine Berry is the owner of the Bizwrite Real Estate Service. For a selection of simply the best properties in Cyprus, come and visit http://www.bizwrite.co.uk/realestate/overseasproperty.html - If you would like to know how to refinance your home in order to buy your Cyprus property, you'll find all the information at http://www.bizwrite.co.uk/realestate/lending.html
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