CITIZENS/COMPANIES
CONTRACT OF SALE – CONSIDERATION – EXCHANGE
Who can apply:
When an interested party agrees to buy immovable property which has no title deed, for instance when then property is still under construction or if there are financial and/or other pending issues that postpone the transfer of the property to the purchaser to a future date, it is recommended to conclude and sign a Sale Contract.
With the deposit of the Sale Contract, the provisions of the Sale of Immovable Property (Specific Performance) Law 81(I)/2011 apply, which aim to protect the Purchaser in case the Vendor fails to meet his contractual obligations set out in the Sale Contract.
As of 12 December 2023, Law No.132 (I)/2023 came into force, which amends the above Law and through which the protection of the Purchaser is further strengthened, as follows:
With the deposit of the Sale Contract, the provisions of the Sale of Immovable Property (Specific Performance) Law 81(I)/2011 apply, which aim to protect the Purchaser in case the Vendor fails to meet his contractual obligations set out in the Sale Contract.
As of 12 December 2023, Law No.132 (I)/2023 came into force, which amends the above Law and through which the protection of the Purchaser is further strengthened, as follows:
- The Purchaser is granted the right, in cases where a Mortgage or other Contract has already been filed, to pay the amount of the Sale Contract to the bank account of the Vendor - the Mortgagor and to transfer the property (subject of the Contract) in the name of the Purchaser, irrespective of any Encumbrances or Prohibitions which may be attached to the property or its owner, and which follow the Contract in priority.
- A Search Certificate indicating any encumbrances and prohibitions on the immovable property which is the subject matter of the Contract, should be included by the Vendor as an integral part of the Contract, for Contracts concluded after the 12th of December 2023. This certificate should be dated within five (5) working days from the date of the Contract.
- It lies at the discretion of the Director of the Department of Lands and Surveys, to impose to the Vendor and Mortgagor, an Administrative Fine in case of failure to comply with specific provisions of the Law.
Required Documents / Conditions / Samples:
Conditions for submitting an application:
- The subject of the Contract should be registered to the Vendor’s name.
- The Contract should be made in writing, containing sufficient details of the parties and the subject matter of the Contract.
- The submission of the Agreement should be done within six (6) months from the date of it was signed.
- A Mortgagor's Consent in Writing ("Form A") or a Purchaser's Consent in Writing ("Form C"), in case the only Encumbrances to which the immovable property (the subject matter of the Contract) is subject are an already filed Mortgage or other filed Contract, and the registered owner thereof has no Prohibitions. In case there are other Encumbrances other than those mentioned above, the provisions of the new legislation are not applicable.
- Application – Form Δ.Ε.129
- Initial Contract duly stamped or a certified copy thereof (with original signatures) and with proof that the original Contract has been duly stamped.
- In case the immovable property (subject matter of the Contract) is subject only to an already registered Mortgage or other registered Contract, and these are the only Encumbrances to which the immovable property is subject, and the registered owner of the property is not subject to a Prohibition:
- A Written Consent – “Form A”, duly signed and certified by all related parties (Mortgagor, Vendor, Purchaser) or
- A Purchaser's Written Confirmation - "Form C", signed by the Buyer and duly certified in case its submission to the District Lands Office is not done by the Buyer.
- Official Cadastral Plan, signed by the Vendor(s) and the Purchaser(s).
- Sectional Views (in case of a unit), signed by the Vendor(s) and the Purchaser(s).
- A Declaration Δ.Ε.304 in case the vendor or the purchaser is a legal person. Unless the secretary/representative of the legal person is present, then the signature must be duly certified.
- Photocopy of both sides of the applicant’s identity card or passport or ARC (for foreigner applicants)
- The Contract may be submitted by either of the parties, i.e. the purchaser and/or the vendor. It may also be submitted by the purchaser's attorney or by the registered real estate agent who has mediated the specific land transaction, provided that he has submitted the relevant real estate agent's declaration; or by any other proxy of one of the parties to the contract.
- Where one of the contracting parties is a legal person, upon submission of the contract it is verified whether the signatories are legally binding the legal person, pursuant to its Articles of Association. It is therefore recommended that a copy of the current Articles of Association be provided in cases where there is no Power of Attorney.
- With regards to the above mentioned Forms A and C, please refer to the following clarifications:
- The «Form A»is the Written Consent of the Mortgagor and Vendor. The Purchaser is made aware of the content of this Consent and duly signs it. The Written Consent, issued by the Mortgagor states a specific amount and ensures that, in the event that the Purchaser pays the stated amount into the bank account of the Vendor (who is indicated in the Written Consent), then the Mortgagor will immediately issue to the Purchaser a relevant confirmation of payment«Form Β»and release the property from the Mortgage or remove the Mortgage.
- The «Form C», is the Purchaser's Written Consent, whereby he confirms that he wishes to deposit the Contract at the competent District Lands Office, without Form A being attached to it.
How to submit:
Acceptance of the application for submission of the Contract is made at the District Lands Office where the property is located.
Fees / Charges:
| FEES |
|---|
| €50.00 For the deposition of the Contract |
