What are Title Deeds?

Frequently asked questions about buying & selling property in Cyprus
Nigel Howarth
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What are Title Deeds?

Post by Nigel Howarth »

Title Deeds, which in Cyprus are also know as “Certificates of Registration of Immovable Property”, are formal documents that serve as evidence of property ownership. Each piece of immovable property has an associated Title Deed which contains information such as the registered owner of the property, its size, its location and the Lands’ Office reference. Conveyance of this document is required to transfer ownership of property from one person or company to another.

As the legal ownership of immovable property is denoted by its Title Deed, all sales must provide for the transfer of ownership and registration of the property in the buyer’s name. This is carried out by officials at the District Lands’ Office at completion.

what are the benefits and disadvantages of not having your Title Deeds?

Advantages of not having Title Deed
  • On the plus side, you do not pay Property Transfer Fees to complete the purchase and have ownership of the property transferred to your name.
Disadvantages of not having Title Deeds
  • You are unable to enjoy the full benefits of ownership, including the right to transfer it to anyone you wish.

    As the property is not legally yours, you are unable to sell it to whoever you want. Should you wish to sell, you have to come to an arrangement with its registered owner. This arrangement will require you to cancel your contract of sale which will enable the owner to enter into a new sale agreement with your buyer.

    Even though the assessed 1980 value of ‘your’ property falls below the CYP 100,000 threshold, its registered owner may demand that you to pay Immovable Property Tax.

    Under some circumstances, the registered owner of the property may still able to use it as security to raise a loan. If this happens you may find it difficult, if not impossible, to sell the property.

    Without a Title Deed you will be unable to use the property as collateral to raise money and unable to access any of the capital you have tied up in it through equity release schemes and other mechanisms.

    As the Cyprus financial institutions currently refuse to grant mortgages on resale properties without Title Deeds, anyone wishing to buy the property you have bought must be a cash buyer.
Unfortunately, some people have to wait many, many years before getting their Title Deeds.
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