What is a Title Deed for Property in Cyprus and How to Obtain It

Published on 10th of January, 2025

A Title Deed in Cyprus is the main document that confirms ownership rights to a property or land. This document legally secures all rights for the owner, allowing full control over the property. Only with a Title Deed can the owner sell, inherit, or use the property as collateral.

How to Obtain a Title Deed for Property

The process of obtaining a Title Deed includes several steps:

1. Property Reservation. The buyer must reserve the chosen property with the Cyprus Land Registry Office.

2. Full Payment. The total cost of the property must be fully paid.

3. Transaction Registration. After the purchase is finalized, the deal is registered with the Land Registry.

4. Title Deed Issuance. Once registered, the buyer receives the Title Deed confirming their ownership rights.

Importance of Having a Title Deed

The absence of a Title Deed can lead to serious problems for the owner. Without this document, it is impossible to:

• Fully manage the property (sell, inherit, or use it as collateral);

• Protect ownership rights in legal disputes;

• Obtain a mortgage or loan using the property as security.

Risks of Buying Property Without a Title Deed

Many buyers, especially from Russia and the UK, have fallen victim to fraudsters selling property without a Title Deed. As of 2015, around 30,000 properties in Cyprus lacked this document. In such cases, obtaining a Title Deed can take 7 to 25 years due to bureaucratic procedures and developers' financial obligations.

Timeline for Title Deed Issuance

The time required to obtain a Title Deed depends on the type of property:

• Secondary Market: Transferring the Title Deed takes about 1 hour.

• New Builds: The document is issued after the property is completed. Verification can take 1 to 4 years.

Some developers mortgage land to banks for construction loans. If the loan is not repaid, obtaining the Title Deed is impossible. It is crucial to work with reputable agencies and involve a lawyer in the transaction.

Cost of Obtaining a Title Deed

When obtaining a Title Deed, a property transfer tax called the Transfer Fee is charged. The tax amount depends on the property's value:

• Buyers of new properties subject to VAT are exempt from the Transfer Fee.

• For other properties, the tax rate is progressive and calculated individually.

What Happens to the Previous Title Deed?

The previous owner retains their Title Deed. A property can have multiple Title Deeds depending on the number of previous owners. However, only the latest document registered with the Land Registry is valid.

How to Avoid Risks When Buying Property in Cyprus

To minimize risks:

1. Check the Developer. Work with licensed real estate agencies.

2. Hire a Lawyer. A lawyer will verify the legal status of the property.

3. Clarify the Property Status. Find out if the Title Deed is issued or how long it will take to obtain it.

Conclusion

A Title Deed is a guarantee of security and confidence in property ownership in Cyprus. Before purchasing, it is crucial to thoroughly check the property and collaborate with professionals to avoid potential risks and issues in the future.