Title deeds - in the nutshell

[xavier]

Cyprus has an effective land registry system in which all immovable property is registered. Title Deeds, which are also know as "Certificates of Registration of Immovable Property", are formal documents that serve as evidence of property ownership.

Every immovable property has an associated Title Deed with all relevant information pertaining to the property (registered owner, its size, its location and the Lands' Office reference).

As the legal ownership of immovable property is denoted by its Title Deeds, your Contract of Sale must provide for the transfer of ownership and registration of the property in your name and the contract deposited for 'Specific Performance' at your local branch of the Land Registry - the District Lands' Office.

Why bother with Title Deeds?

The title deeds are yours as a right. The decision whether to 'buy' them or not does not apply. As the legal ownership of immovable property is denoted by its Title Deeds, it is in your interest to secure them at the earliest.

So, what are the advantages and disadvantages of not having your Title Deeds?

1. Are there any advantages of NOT having Title Deeds - yes.

For one, you do not pay property transfer tax to complete the purchase. So, if you are purchasing a property without title deeds the only expense you have now is the purchase costs & legal costs.

If title deeds are forthcoming in 2 years time, for example, the appropriate fees have to be paid to the government (something akin to Stamp Duty , in UK) at that time. Handy when you want to spread your expenses.



2. Disadvantages of not having Title Deeds - You do not 'own' your property and are therefore unable to enjoy the full benefits of property ownership, including the right to sell or transfer it to anyone you wish without reference to its registered owner.


3. Should you wish to sell, you need to cancel or transfer your contract of sale at the Land Registry enabling its registered owner (ie, the developer) to enter into a new sale agreement with your buyer. I know some buyers who have been charged CYP 20,000 by the registered owner, a disreputable property developer, for this 'privilege'. But a recent Court ruling may help to put an end to this despicable practice.

4. Without Title Deeds you are unable to raise money against your property and unable to access any of the capital you have tied up in it through equity release loans and other schemes.

5. Some Cyprus financial institutions currently refuse to grant mortgages on resale properties without Title Deeds, and anyone wishing to buy your home must be a cash buyer.

At Fitzgerald, where possible, will do their utmost to help secure mortgage provider and their success rate is impressive