Developers and Customers

Cyprus Property developers build and develop properties, resorts and complexes and often work with Cyprus Estate Agents who sell the houses and apartments on their behalf. First and foremost you should expect the developer to build properties that as a minimum reach the building code or regulations of Cyprus. Do not forget that regulations and standards will differ from your country to ours. You should also expect that full planning permissions have been received, or if buying off-plan prior to permissions being granted, this should be made clear and your agreement should state your rights to a refund if permissions are not obtained. Your choice of professional Cyprus Lawyers to perform due diligence to ensure all such paperwork is in place always pays. Be aware of the documents of which you should be in receipt. If you are buying off-plan (literally from the plans, although you may be able to visit a show house) which is the way many properties in Cyprus are sold, you should expect the developer to provide a building schedule for your property. The schedule should be noted in the sales contract, which is legally binding – although the small print will often state any penalties should the build over-run as it sometimes will. In the same documents you should expect a schedule of payment terms which, when you are buying off-plan, will be phased over the build period. For example, two payments of 30% with the balance on completion. The sales contract should also stipulate where your deposit and stage payments will be held and by whom. Ideally, you will want the funds to be held in escrow, which is an account over which the timing and direction

The role of the developer of release of the money, by the independent third-party escrow agent, will be dependent on certain build stages being completed, or pre-specified conditions met. Your money is therefore protected should the developer go out of business. Lastly, any management fees, and what they are for and include, should also be outlined, though it is likely that a separate management contract will be drawn up for this. Once you have signed a sales contract, you should expect the developer to communicate regularly with you. Most developers will assign you a customer services person who will keep you informed of the build progress of your property. Invariably, you will be directed to a website or blog where photographs and written updates can be viewed at your leisure. If you have any concerns about how the build is progressing, your customer services representative should address them. Lastly, once your cyprus dream home is completed, paid for, the title deeds or notary signed and you have the keys to the door, it’s reasonable to expect the developer to make himself available to address any ‘snagging’ issues to your satisfaction

original idea:AIPP