The Sales Agreement
Once the terms are agreed, the contract is signed and the rights and obligations of the parties are defined. Besides the Agreement, the Seller must take into consideration the following:
Seller’s Responsibilities
Seller should make sure that all appliances, furniture and fittings are in good and working order. Seller must confirm that there is no leak from roof or from any other water pipes. Any defects in the home should be disclosed by the seller.
The seller must deliver free and vacant possession of the property, unless otherwise agreed between seller and buyer (e.g.valid tenancy agreements).
The seller should pay all outstanding taxes and levies of the property before the transfer of the ownership to the buyer (such as property tax, sewerage, water, electricity, common expenses).
If the seller will receive a bankers’ draft cheque on the closing day, then he should have a bank account in Cyprus to deposit the money from the sale.
We handle all aspects of residential and commercial real estate transactions including: contract drafting, due diligence, negotiations, contract review, transfer of title.
Seller’s Costs
The seller is required to pay the following:
- Capital Gains Tax of 20% on the profit of the sale
- Municipality property tax
- Government property tax
- Water/electricity consumption
- Common expenses-if applicable
- Sewerage levy
- Defense tax-if the property was rented
- Any mortgage liens or judgments would have to be satisfied
- Attorney legal fee and any disbursements
Our law firm represents individuals and businesses in Cyprus in real estate matters from negotiations to the closing.