General information only — not legal advice. Always use an independent Cyprus lawyer for your transaction.
Why due diligence is where deals are won (or lost)
Most Cyprus property problems don’t come from the signing day. They come from what wasn’t checked before money moved: title deed status, mortgages/charges, planning irregularities, or a contract that doesn’t protect the buyer if timelines slip.
One Cyprus-specific step is especially important: once a Sale Contract is signed, the Department of Lands and Surveys (DLS) recommends having it stamped (where applicable) and depositing it with DLS no later than six (6) months from signing, linking this to protections under the Sale of Immovable Property (Specific Performance) Law 81(I)/2011.
That law was also amended by Law 132(I)/2023, effective 12 December 2023, to improve buyer protections.
The due diligence checklist (with responsible party)
1) Property identity and “what exactly am I buying?”
Responsible: Buyer + Agent (pack), Lawyer (verify)
- ☐ Confirm the exact property description (address, unit number, boundaries/plan references)
- ☐ Confirm inclusions/exclusions (parking, storage, furniture, appliances) in writing
- ☐ If it’s a complex (apartment/townhouse): confirm common areas and any exclusive-use areas
REXE tip: Create a single “Property Fact Pack” early—so everyone (buyer/lawyer/agent/seller) is working off the same source of truth.
2) Title deed status (the big risk switch)
Responsible: Lawyer (verify), Buyer (decision), Agent (support)
- ☐ Is the title deed available now or pending?
- ☐ If pending (common in some new builds): confirm the expected pathway/timeline and what “completion” means before separate titles exist
- ☐ Ensure the contract has extra protections for title-deed-pending scenarios (see section 6)
3) Ownership and authority to sell
Responsible: Lawyer
- ☐ Confirm the seller is the registered owner (or has valid authority)
- ☐ If seller is a company: confirm authorised signatories and approvals
- ☐ If signing via Power of Attorney: validate scope and validity
4) Encumbrances: mortgages, memos, liens, restrictions
Responsible: Lawyer
- ☐ Search for registered mortgages/charges, memos/judgments, prohibitions, easements, leases, third-party rights
- ☐ If anything exists: agree a written clearance plan (what gets paid, to whom, and what evidence is required to prove release)
- ☐ Confirm whether any “developer-level” financing could affect transfer timing (important in new builds)
5) Planning and building compliance
Responsible: Lawyer + Engineer/Surveyor (as needed), Buyer (decision)
- ☐ Confirm the property’s build/alterations match permits and approvals (as applicable)
- ☐ Identify any irregularities that could block transfer, financing, or future resale
- ☐ If older property or renovation: commission an inspection (structure, moisture, boundaries, major defects)
6) The Contract of Sale (buyer protections live here)
Responsible: Lawyer (draft/review), Buyer (approve), Agent (commercial inputs)
Your contract should clearly cover:
- ☐ Property description + inclusions
- ☐ Payment schedule, milestones, and completion date
- ☐ Seller deliverables at completion (documents/clearances)
- ☐ Default/remedies for delay or failure (for both sides)
- ☐ A clear plan if transfer is delayed or title deeds are pending (including consequences and remedies)
7) Deposits: do not pay without written release conditions
Responsible: Buyer + Lawyer
- ☐ Deposit amount and holder clearly stated
- ☐ Refund conditions clearly defined (e.g., due diligence failure, seller default)
- ☐ Non-refund triggers (if any) are explicit and time-bound
- ☐ Release process is documented (who authorises release and based on what evidence)
8) Post-signing protection: deposit the Sale Contract with DLS
Responsible: Lawyer (action), Buyer (confirm done)
This is a critical Cyprus step.
- ☐ After signing, ensure the Sale Contract is deposited with DLS no later than 6 months from signing (as recommended by DLS).
- ☐ Keep proof/receipt of deposit and the final signed contract
DLS explicitly links depositing the Sale Contract to protections under Specific Performance Law 81(I)/2011.
And amendments under Law 132(I)/2023 (effective 12 Dec 2023) updated the framework to improve buyer protections.
9) Tax pathway checks (VAT vs transfer fees)
Responsible: Lawyer + Buyer (budget), Tax adviser (if needed)
- ☐ Confirm whether the transaction is subject to VAT (often new builds) or not subject to VAT (often resales)
- ☐ Confirm the likely impact on transfer fees (VAT-subject transactions are commonly treated differently)
(Your lawyer/tax adviser should confirm the correct treatment for your exact deal.)
10) Foreign buyer requirements (when applicable)
Responsible: Buyer + Lawyer
- ☐ Confirm if any foreign buyer permissions/approvals apply based on your nationality/entity type
- ☐ Build approval timing into the transaction plan early (to avoid last-minute delays)
Red flags that should pause the deal
If any of these appear, pause and escalate:
- “Title deed will be ready soon” with no evidence or pathway
- Pressure to pay deposit immediately without written terms
- Unclear seller authority (especially inherited property or company sellers)
- Mortgages/charges with no clear release plan
- Planning irregularities treated as “normal” or “everyone does it”
- Contract clauses that don’t clearly allocate delays, remedies, and deliverables
Why REXE?
Want fewer delays and fewer nasty surprises?
REXE helps buyers, lawyers, and agents run due diligence and settlement with a shared checklist—documents, tasks, deadlines, and audit trail—so critical steps (like depositing the Sale Contract with DLS) don’t get missed.
