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A lawyer - Αn absolute Νecessity on Real Estate Transactions

Published: Monday, June 12, 2017

In 2017, real estate property transactions as well as the residential and commercial constructions in Cyprus are increasing rapidly, due to the recovery and advancement of the economy. Economic predictions forecast that the real estate market will significantly rise in the coming years.

The ownership of a property is considered to be a long term investment; albeit sometimes this can be very profitable flip even during short term deals.  Therefore, individuals or corporate buyers should follow the proper actions before, during and at the closing of a deal, in order to safeguard their interests.  On the other hand, sellers should also preserve their rights, in order to avoid any possible consequences that may occur during the closing of the deal i.e. cancellation, financing problems and other tax and legal implications.  

The best investment prior to any decision when acquiring a property is for individuals and corporations, to proceed, in “investing” on the appointment of a professional law firm, with experience in the real estate market.  It is a crucial and of an utmost importance, this decision, so as to secure that the correct and complete due diligence procedures will take place on the proposed real estate property. 

Furthermore, with the appointment of a professional law firm the individuals and corporations reduce their risks and the lead time with the governmental authorities as well as safeguard their rights by securing that all the needed procedures with the land registry and financial institutions will be properly followed.

The due diligence procedures includes amongst others an official land registry search with all possible mortgages, charges or any other encumbrances. Furthermore, the procedures consist of a review of the issued permits, title deeds, zone areas and other important legal elements, in order to ensure that the purchaser is safeguarded in all aspects.

In addition, law firms are needed during those types of transactions (acquisitions and transfer of real estate property) in order to ascertain that both the purchaser and the seller are equally protected.

Through our experience in numerous and daily real estate transactions, not all cases are always simple and straightforward.  For example an acquisition of a real estate might consist an assignment of rights or the purchase can be via a contract with pending title deeds and other parameters and conditions that govern the sale and transfer of the real estate. 

Consequently, a major aspect that governs the real estate transaction is the contract of sale that it should always be drafted by a professional law firm.

As an International Law firm dealing with multiple and complicated real estate transactions regularly, in many occasions and unfortunately we have come across with cases that individuals and companies did not emphasize in the importance of the correct due diligent procedures and the execution of a correct and clear agreement, so as to cover all possible eventualities before, during and after the transfer of the immovable property.  This action led them to unpleasant major consequences that could only be resolved through court actions.

Subsequently, after the signing of the sales contract, another crucial stage with an equal importance is the stage of the execution of the purchase and transfer at the Land Registry.

Evidently, in order to attend to the Land Registry for the completion of the transfer, all necessary prerequisites; i.e tax certificates and other documentation must properly prepared in advanced, cross checked and verified in order to avoid complications, at the date of the transfer execution.

It is noteworthy to mention that the procedures at the land registry can be very lengthy and involve significant paperwork.  However, an experienced qualified team of lawyers can perform the procedures behalf of the client via a power of attorney; thus making their lives easier and saving time.  In most cases through the mentioned procedures, the client does not even need to appear at the land registry.

Moreover, according to our experience qualified and experienced law firms often act and provide escrow services for the performance and execution of real estate contracts.  In these cases, the law firm serves as a third party “holding service”.   The “holding service” offer to the transacting parties, the intermediary mean that will protect all sides for the smooth operation of a transaction i.e. in cases of deposits made for the purchase and sale of a property, holding funds on behalf of the principal or some other person until the consummation of a transaction takes place etc.

In summary, with the appointment of an experienced law firm in real estate transaction, individuals and corporations will certainly avoid any unpleasant consequences that may arise prior, during and after the transaction.  The law firm will safeguard the real estate investment by applying the correct due diligence procedures, preventing any vague and unclear terms in the contract, assisting the finance process through consultation, negotiating the terms of sales on the behalf of the parties,  as well as by providing consultation in regards to property taxes and any other applicable taxes. 


Michalis Economides
Chambersfield Economides Kranos
Country:
Cyprus
Practice Area:
Full Service
Website:
www.eklawyers.com
Phone Number:
+357 25 356800
Email:
Fax:
+357 25 356900
Chambersfield Economides Kranos, is an innovative and progressive International Law Firm with physical presence in more than nine countries, which undertakes a comprehensive range of complex legal disputes and business cases that fall within the scope of litigation and arbitration. The group consists of the law firm Chambersfield Economides Kranos and GFA Trust. The expertise and knowledge of our team of attorneys and legal consultants enable us to undertake a comprehensive range of complex legal disputes and business cases. Although our core business is based upon the provision of legal and corporate services, our diverse abilities assist us to supersede the ordinary. The firm provides legal consultation in various private individuals, corporate entities and financial institutions in times of need for an unbiased professional, legal and consulting perspective. In addition, the multi - level experience, comprehensive understanding of regulations and legislations, as well as, the knowledge of the international commercial and business industry, advances our team of lawyers and legal consultants to a higher level of consultancy. Our team provides advice to a vast range of cases covering all aspects of the business functioning, from start-ups to multinational structures. Moreover, our firm is differentiated from competition for its innovative business comprehensive way of thinking, which is coherent with the customer centric approach followed, in regard to its selective clientele. The overall fundamental core value of the firm is to create and preserve long term relationships with customers and not one-off business dealings. With this practice, customers become “partners” in this mutual relationship and are not treated as customers in a traditional and typical manner. The modus operandi of the firm is composed by a professional approach that supports every solution and decision provided to the customer. Furthermore, in order to ensure customer satisfaction, structural procedures are being followed until the completion of each case. The firm values customer relationship, innovation, loyalty, trust, commitment, integrity and teamwork. These are some of the fundamental principles govern our team and describe our positive long-term relationships with our customers.
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