When buying property in Cyprus, ensuring that your new property is correctly registered and comes with a ‘clean title’ is crucial. Understanding the importance of title deeds and the role of a clean title can help you make a safe and secure purchase. Here, we address common questions and highlight the importance of appointing an independent lawyer.

What Is a ‘Clean Title’?

A property with a ‘clean title’ has no ownership disputes, meets all planning permission requirements, and is free from any financial encumbrances or liens. This means the seller is the rightful owner, and there are no third-party claims on the property due to outstanding debts. Ensuring a clean title is essential for any buyer, as it guarantees a smooth and secure transaction.

How to Verify a ‘Clean Title’

Verifying that a property has a clean title involves several steps, primarily handled by your independent lawyer. Here are the key elements of this process:

  1. Title Deeds: Ensure the property has up-to-date title deeds registered at the Land Registry.
  2. Land Registry Information: The Land Registry provides detailed information about the property, including current and past ownership, boundaries, rights, restrictions, and any registered liens or charges.
  3. Cadastral Register: If applicable, this register records details about the property’s physical characteristics, boundaries, and cadastral value used for tax purposes.

In Cyprus, a notary will also perform final checks before completing the transaction to ensure everything is in order.

The Role of the Cadastral Register

The Cadastral Register is crucial for taxation and administrative purposes. It records detailed information about a property’s boundaries, size, modifications, and physical attributes. The cadastral value, determined by tax authorities, is used to calculate local property taxes. It’s important that the information in the Cadastral Register matches the details in the Land Registry to avoid any discrepancies.

Registering Deeds at the Land Registry

To register new deeds at the Land Registry in Cyprus, the buyer and seller typically sign the documents in the presence of a notary or lawyer. This process formally authorises the transaction. The notary or lawyer then sends the signed deeds to the Land Registry, where they are recorded, and the buyer is officially registered as the new owner. All related taxes, such as transfer tax, stamp duty, and local council tax, must be up-to-date for the registration to be completed.

What If the Property I Love Is Unregistered?

Buying an unregistered property can be risky. Unregistered properties may not have clear ownership records, making it difficult to confirm the seller’s right to sell or identify any outstanding charges. In some regions of Cyprus, properties passed down through generations without formal registration can complicate ownership. It is generally advised to avoid purchasing unregistered properties or those without up-to-date deeds to ensure legal ownership and prevent future disputes.

Title Deeds and the Cyprus Property Market

In Cyprus, some properties, particularly in developments, may lack individual deeds due to delays at the Land Registry or developers not fulfilling planning requirements. While the situation has improved, it is crucial to conduct thorough due diligence and seek legal advice. Your lawyer can guide you through the complexities and help you determine if buying a property without deeds is a viable option.

Potential Issues with Properties in Cyprus

Properties in Cyprus can have various issues, such as lack of planning permission or discrepancies between the physical property and its registered details. For example, unauthorised extensions or pools may not appear in official records, indicating they were built without proper permission. Outdated mortgage charges from previous owners can also cause delays. Ensuring all issues are resolved before purchasing is essential to avoid complications.

Title Insurance: An Extra Layer of Protection

While not common in Cyprus, title insurance is an option to consider. Title insurance provides indemnity cover against unforeseen claims on a property’s title. It protects buyers from fraudulent claims and errors in previous transactions. Title insurance can cover the value of the property purchase or the loan value for lenders, offering additional peace of mind.

For more information on buying property in Cyprus and ensuring a secure transaction, browse our listings and consult with our team at Kora Real Estates today.