Many foreign investors and local buyers have concerns when the Cyprus property they are interested in does not have a title deed, or rather a “separate title deed”. This article explains why this may be the case and whether the absence of a title deed of a Cyprus property should be stopping a potential buyer from purchasing his property of choice.
What are Title deeds in Cyprus, and how are they issued?
The Certificate of Registration of Immovable property, or the Title Deed of the property as it is commonly referred, is a formal document issued by the Land Registry which provides conclusive evidence of property ownership. In addition, it includes among others, details about the property’s location, reference number and size.
All land in Cyprus has a title deed. The problem commonly arises when the land is being developed into buildings and apartments as a process needs to be undertaken to divide the land into smaller pieces if necessary, convert it into plots allowing construction and actually constructing the properties in question. Every step of the process requires permits from the planning and building authorities of Cyprus.
If a separate title deed has not been issued for the house or flat, there will still be a title deed for the land. This title deed will still be in the Developer’s name. The purchaser, in this case, should, if his lawyer has not been negligent, have lodged the agreement
So why do not all properties in Cyprus have a separate title deed?
Separate title deeds may not be issued for three main reasons. The first type of reasons are problems during the process of development. For example, the developer might not have completed all the required actions and applications. He may also have not followed the guidelines for planning and building permits for construction. In this situation, actions need to be taken to legalise the structural changes or conclude the necessary actions outstanding.
The second type of problem is developer-related, such as non-payment of taxes or discharging mortgages. In this case, the property-owner should file the necessary applications for the issuance of a separate title deed and the transfer of that title deed to his own name. The process, takes approximately 18-24 months to conclude.
The third problem may simply be the delay of the Land Registry or other governmental departments to issue the separate title deeds. Some developers are more diligent than others and chase the authorities more and as such manage the issuance of the separate title deeds faster than others.
Can I buy a Cyprus property without a separate title deed?
One has the ability to buy a property without a title deed but proper due diligence should be made first to examine the reason why the title deed has not been issued yet. In addition to that, the selling price is always a consideration; the purchase may be a bargain.
Other important factors are:
(i) the intended use of the property; for example, short-term or long-term rental, which may not be affected by the absence of title deed (ii) the “emotional value” to the buyer. Simply put, the buyer may believe that this is an ideal place for him/ her to live in and be worth the time and costs to issue a separate title deed.
To conclude, prior to buying a property in Cyprus that does not have a separate title deed the interested buyer should examine the reason, the price and the intended use. It is not always a bad idea to buy a property without separate title deeds but the buyer must proceed with caution and reach a well-considered decision.
This article is provided only for information purposes and does not constitute legal advice. You should seek legal advice prior to proceeding with any purchase and should not rely on it without doing so.
Is your real estate investment in Cyprus protected against legal pitfalls?
Buying property in Cyprus, like in any country, has its own steps and rules. These include getting a title deed, following local laws, and understanding specific taxes. These factors make the process different from other places.
For more information on Cyprus real estate, download our free FAQ guide that breaks down the essentials of buying property in Cyprus.
