Cyprus estate agents in Limassol
Estate agency in Cyprus is a regulated profession: acting as an estate agent is a criminal offence for anyone who is not a registered estate agent with a valid annual licence, apart from an agent established in another EU or EEA state or Switzerland who provides services in Cyprus on a temporary basis under the law. At DevelopersCyprus, our most proficient agents have over 40 years of experience in the local property market.
Read about our services, how we work within the rules, and how we build relationships with our clients.
Estate agents in Limassol
We are real estate agents in Limassol, advertising and selling properties in all areas of southern Cyprus, including Paphos, Larnaca, Nicosia, and Famagusta. Along with property development, our team has been providing the following estate services since 1982:
- Professional market insights, contract negotiations, and closing support for buying property in Cyprus, selling, or renting properties.
- Specialised assistance for international buyers in the local real estate market and legal requirements, which include obtaining residency permits and understanding local laws.
- Property valuations and marketing of real estate.
- Assistance and guidance throughout the property buying process, including legal advice from a lawyer we arrange, design, construction of custom properties, and sales of unique projects designed for clients' needs, along with support for obtaining necessary permits.
- Management of rental properties, including short-term and long-term rentals, collection of rental fees, and handling of common expenses and property visits to keep the property profitable and maintained.
- High-standard property management services for overseas buyers, including maintenance, upkeep, payment of utility bills, record-keeping, and assistance with property insurance.
- Structuring and managing real estate investments focused on building value and providing tailor-made investment solutions.
- Handling the administrative tasks of property transactions, including paperwork and timely processes, with a lawyer we arrange for the legal side.
How much do estate agents charge in Cyprus?
A licensed estate agent who mediates in a property transaction is entitled to the agreed fee. Where nothing else is agreed, the law sets the fee at 3% of the value of the transaction, payable when the sale or rental agreement is concluded. If the deal is not reached for reasons the agent is not responsible for, the agent is entitled to a reasonable fee for the time and costs spent.
At DevelopersCyprus the seller pays the agent's fee and the buyer pays none.
Using a licensed agent
The law does not require an estate agent. If you use one, use a licensed agent: an agreement with an unregistered agent, or with an agent who has no valid annual licence, is void. A licensed agent displays the certificate of registration and the annual licence in the office, and shows the agent's name, the words "licensed estate agent", the registration number and any trade name declared to the Council on the office front.
Professional insurance
No one may act as an estate agent until an insurance contract with a licensed insurer is in place, covering the agent for €200,000 against liability to compensate a buyer for breaching the agent's legal duty to inform the buyer fully (section 21), and a copy is lodged with the Council. The original or a true copy must be displayed in a prominent place in the office.
The fee in the transfer declaration
When a property is transferred after a transaction made through an intermediary, the parties must state the intermediary's name and address and the fee paid in the transfer declaration.
Within 30 days of receiving such a fee, the person who received it must pay the Council an amount equal to 2/10,000 of the amount in the transfer declaration. If it is not paid, the Council can recover it as a civil debt with interest at 8% from the date it fell due.
Failing to comply with either duty, or knowingly giving false or inaccurate details, is an offence punishable by up to three months in prison, a fine of up to €1,000, or both.
Reasons you need a good estate agent
Finding your way among the available properties, price lists, individual owners or landlords and the paperwork can be hard. Estate agents at DevelopersCyprus have the expertise and knowledge of the local market needed to help you find the best property for your needs.
How a good estate agent helps
Our estate agent will pay attention to your needs, give you clear and honest advice and be easy to reach and consult. The reasons why you need such a good estate agent are as follows:
- They will give you objective information about the market and available properties and personalised advice depending on your budget and requirements.
- You will avoid mistakes and delays with a good estate agent. They have the local knowledge to guide you through the market until you find the right property.
- Estate agents will deal with the (sometimes complicated) paperwork and documentation necessary to rent or buy property. They know the rules to follow when buying or renting property. This will save you time and energy and take a weight off your shoulders.
- The real estate agent is experienced and skilled in negotiating, which helps you buy or rent the right property at the right price.
- Don't underestimate the emotional side: when things get overwhelming, the estate agent will give you calm advice and help you remain focused. It is good to know that you have a professional by your side during the transaction.
- A real estate agent is networked and can connect you with other professionals you might need, such as valuers, builders, decorators, technicians, and so on.
- A registered estate agent who acts dishonestly or improperly in the profession commits a disciplinary offence. The Council can reprimand the agent, impose a fine of up to €2,000, suspend the annual licence for up to five years or strike the agent's name off the register.
Cyprus real estate agents' law
Cyprus real estate agents' law comprises the following fields:
- The real estate profession and code of conduct.
- Anti-money laundering and due diligence obligations.
- Laws relating to the carrying out of their duties and estate agency work.
Profession and code of conduct
The main legislation on estate agents in Cyprus is the Estate Agents Law 71(I)/2010. It sets out how estate agents are registered and licensed, sets up the Estate Agents Registration Council and sets out the rights and duties of a licensed estate agent.
An individual can be registered as an estate agent under section 11 only if he or she:
- is a citizen of Cyprus or of another EU member state, an EEA state or Switzerland; the spouse or child of such a citizen can register as well, if his or her habitual residence is in Cyprus and he or she meets the other conditions;
- is not bankrupt or under another legal incapacity;
- has no conviction for an offence involving dishonesty or moral turpitude, or has been rehabilitated under the Rehabilitation of Offenders Law after one;
- holds a recognised diploma from at least three years of post-secondary study (or the part-time equivalent) at a university or other higher education institution in subjects related to the profession, or a postgraduate degree from at least one academic year of study in those subjects, and has completed at least 12 months of practice in Cyprus as a registered assistant estate agent;
- passes the Council's written exams on Cyprus property and planning law.
A company or partnership can be registered as an estate agent as well, under its own conditions in the same section.
An assistant estate agent is an employee of a licensed estate agent who does agency work on that agent's instructions and is registered in the Council's Register of Assistant Estate Agents. To register, the assistant needs a secondary school leaving certificate or its equivalent and has to meet the same conditions on citizenship, bankruptcy and criminal record as an estate agent.
The licensed agent's duties
Under the law, a licensed estate agent must:
- Tell the buyer in writing, before mediating, of any ownership or other interest in the property held by the agent or by a relative by blood or marriage up to the third degree. For an agent that is a company, the interest of its directors, secretary, shareholders, partners or other officers, and of their relatives to the same degree, counts too.
- Hold a valid annual licence. Each licence expires on 31 December, if it is not cancelled or suspended earlier, and acting as an estate agent without a valid one is a criminal offence. An agent who neither renews it within three months of expiry nor tells the Council in writing of a decision not to renew can be struck off the register.
- Act honestly and in a way that fits the profession. Breaking any of the agent's duties is a disciplinary offence before the Council and a criminal offence. Describing oneself falsely or inaccurately in a notice, advert, document or office sign, trading under a name other than the registered one, falsely claiming a diploma, or falsely claiming special property expertise is a criminal offence: up to 12 months in prison and a fine of up to €3,500, separately or together.
- Display the certificate of registration and the annual licence in a prominent place in the office.
- Show clearly on the office front the agent's name, the words "licensed estate agent" (αδειούχος κτηματομεσίτης), the registration number and any trade name declared to the Council.
- Put the words "licensed estate agent", the registration number and the licence number on every document and advert used in the work.
When the seller or the buyer asks, an agent who is mediating in the transaction can give an opinion on its value.
AML and due diligence
The main legislation is the Prevention and Suppression of Money Laundering Activities Law 188(I)/2007. Estate agents fall under it, and for lettings only where the monthly rent is €10,000 or more. The Estate Agents Registration Council is the supervisory authority under that law for the professional activities of estate agents.
An estate agent must identify the client and apply due diligence measures:
- When entering into a business relationship.
- When carrying out an occasional transaction of €15,000 or more, in one operation or in several that seem linked.
- When there is a suspicion of money laundering or terrorist financing, whatever the amount.
- When there are doubts about the accuracy or adequacy of the identity documents or information collected earlier for an existing client.
The law sets out the due diligence measures. To verify a client's identity, it accepts documents, data or information from a reliable and independent source, including, where available, electronic identification under EU Regulation 910/2014 or another secure remote or electronic identification process that a competent Cyprus authority regulates, recognises, approves or accepts. The measures cover identifying the client's beneficial owner too.
A person who, through work in an estate agency or another business covered by the law, knows or reasonably suspects that someone is involved in money laundering or terrorist financing must report it to MOKAS (the Unit for Combating Money Laundering) when that is reasonably possible. Failing to report without a reasonable excuse is an offence: up to two years in prison and a fine of up to €5,000, separately or together.
Cash payments
Anyone who trades in goods or provides services, including the purchase and sale of property, may receive or make a cash payment of no more than €10,000, or the equivalent in another currency, whether in one operation or in several that seem linked. Exceptions include payments between natural persons not acting in a professional capacity, and payments, deposits and loan repayments made at the premises of banks, e-money issuers and payment service providers.
A breach is a criminal offence, punishable by a fine of up to 10% of the cash received, up to five years in prison, or both.
Carrying out duties
The real estate agent must follow the procedures and requirements set out by the laws relating to land transactions, mortgages, planning, etc. Some relevant legislation regulating our business is:
- The Immovable Property (Tenure, Registration and Valuation) Law, Cap. 224.
- The Acquisition of Immovable Property (Aliens) Law, Cap. 109.
- The Immovable Property (Transfer and Mortgage) Law, Law 9/1965.
- The Sale of Immovable Property (Specific Performance) Law of 2011.