Buying property in Cyprus is one of the most rewarding investments you can make. With a stable market, EU protections and strong rental demand, Cyprus remains a top choice for both lifestyle and investment buyers. However, as with any market, there are legal pitfalls that can complicate the process if not handled properly.
Here are the most common legal mistakes buyers make when purchasing property in Cyprus — and how to avoid them.
1. Not Checking Title Deeds
The single biggest risk when buying property in Cyprus is purchasing a home without separate title deeds. While many properties are safe and legally sound, some developments may still be waiting for final approval from authorities.
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Without a title deed, you cannot officially register ownership in your name.
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Problems with developer mortgages or unpaid taxes can delay transfer.
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Always confirm whether the property has a clean title deed before paying a deposit.
Tip: If the property doesn’t yet have a title deed, your lawyer must register the Sales Agreement at the Land Registry to protect your legal rights until the deed is issued.
2. Using the Seller’s Lawyer
One of the most common mistakes is relying on the developer’s or seller’s lawyer. This can create a conflict of interest and leave the buyer unprotected.
Solution: Always hire your own independent lawyer who represents only your interests. A good lawyer will carry out due diligence, check for encumbrances and ensure the contract protects you fully.
3. Overlooking Planning and Building Permits
Some buyers fall into the trap of purchasing properties that were built without full planning or building permits. This can lead to legal disputes or even demolition orders.
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Always ensure the property has both planning and building permits.
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Your lawyer should verify these documents with the local planning authority.
4. Not Understanding the Sales Agreement
The Sales Agreement is legally binding once signed and registered at the Land Registry. Failing to review it carefully can expose you to hidden fees or unfair terms.
Key things to check in your Sales Agreement:
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Clear payment schedule
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Completion deadlines for new developments
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Warranty for construction quality
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Responsibilities for communal fees and maintenance
5. Ignoring Tax and Fee Obligations
Many buyers underestimate the cost of taxes and fees when buying property in Cyprus. These include:
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Stamp Duty (0.15–0.20%)
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Transfer Fees (3–8% unless VAT has been paid)
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VAT (5% for first home, 19% otherwise)
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Legal fees (usually 1–2%)
Failing to plan for these costs can cause financial stress at closing.
6. Skipping Proper Due Diligence
Beyond title deeds and permits, there are other checks that protect you from future issues:
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Outstanding mortgages or debts on the property
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Zoning restrictions for land purchases
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Easements or rights of way that may affect usage
Only a thorough due diligence process ensures a secure investment.
7. Relying on Verbal Agreements
In Cyprus, verbal promises carry no legal weight. Always ensure that every term is written and signed in the official Sales Agreement. Whether it’s furniture included in the sale, a completion date or special conditions, it must be documented.
Buying property in Cyprus is safe and rewarding when done correctly, but ignoring legal details can create costly problems. The good news is that all of these pitfalls are easily avoided with proper legal guidance and due diligence.
At LifeRealty, we work only with licensed, independent lawyers and guide our clients through every legal step. From title deed checks to final transfers, we make sure your property purchase in Cyprus is secure, transparent and stress-free.