The first step is the signing of the Reservation Deposit Agreement. This will take the property off the market for a specified period of usually one month.
Within this holding period, the purchasing lawyer will carry out all the necessary inquiries that are needed, at the District Land Registry to ensure that the vendor of the property is indeed the owner and ensures that the purchaser obtains good title to the property.

The reservation amount is usually at 1% of the property price. The reservation deposit will be “subject to contract” i.e. it is non-refundable, but it is returnable, for instance, if the searches are not successful.

Searches before Exchange of Contracts

Planning Department Search.
This ascertains whether a building permit exists and whether the developer can legally build and sell to other entities.

A company search
A detailed company search demonstrates that the developer has the legal capacity to enter into contracts of sale, and that it is not been served a liquidation order.

Step Two: Signing of the Contract of Sale.

Considering that all searches have been successful the next step to proceed is the signing of the contract of sale, by the vendor and the purchaser. This is similar to the English Term, exchange of Contracts. Upon signing the contract of sale, the purchaser has a 6 weeks grace period to pay the first installment to the vendor. If the purchaser fails to do that, then the contact can turn void.

Step Three: Possession of the property.

Possession of the property will be completed when the property is actually delivered to the purchaser. At this stage the purchaser pays for all the utilities to be connected and he establishes all the rights in this country (residence/tax/driving/duty free and domicile).

Step Four: Transfer of title deeds.

If the property title already exists, then both parties immediately proceed for the transfer of title deeds to the new owners, and pay the remaining amount owed. If the property purchased is new, then the title will take up to three years to be issued by the official authority. Thus the remaining amount owed is repaid to the vendor with the delivery of the property. During that time, legal security to the purchaser is provided when a valid contract is signed, stamped and registered with the land registry.
Important Information

Non Cypriot citizens require permission from the council of ministers to purchase property in Cyprus. This normally takes about 8 to 14 months. In the meantime the purchaser can buy the property and live in it while waiting for the application to get approved.

The below two certificates should be acquired by the applicant in his country and sent as soon as possible. These two certificates will be attached to the application form.

A certificate from any person in authority of the country of the applicant certifying his good character or clean criminal record.
A certificate from any financial institution as to the applicant’s good financial standing. Certificates referring to minimum deposits of 35.000 Cyp to 40.000 Cyp are preferable.

Upon the repayment by the purchaser, a permit from the Central bank of yprus is required for the transfer of the purchase money. This permit is not necessary if both the purchaser and the vendor are foreigners.

All payments should be effected through official channels (Banks) and money brought in cash should be declared at the airport or sea port on arrival.

All properties in Cyprus are sold freehold.

The Cyprus legal system is largely based on Britain’s and provides many safeguards to protect the rights of the purchaser.