Article Publication: Forbes Magazine June 2019

There are many cases where investors, real estate agents and construction companies have questioned whether a real estate agreement requires the appointment and supervision of a professional lawyer.

Even more times we heard that the contract is only typical and meets the basic requirements of the law or that the contract is standard, follows a specific pattern and does not require any change.

A contract, even when the transaction appears simple and straightforward, does not cease to be the most important document of the transaction, as it defines the rights of the parties involved and the appropriate actions on how to resolve various disputes that may arise. Additionally, a proper and careful contract limits all possible risks and prevents uncertainties, which could lead to disagreements.

As an international law firm that frequently deals with multiple and complex real estate transactions, we have unfortunately encountered many cases in which investors and service companies did not pay the necessary attention to the sales contract to cover all the chances of any dispute before, during and after the transfer of the real estate property, resulting in unpleasant and serious consequences that could only be solved through court actions.

Owning a property is a long-term and significant investment because of the large amounts involved. Therefore, investors, sellers and buyers, have to follow the appropriate procedures as defined by the legislative framework, during the closure of an agreement, in order to safeguard their interests.
On the other hand, real estate agents, construction companies, as well as land development companies, should safeguard their rights in order to avoid adverse consequences that may arise during the closure of the agreement, i.e. cancellations, financial problems etc.

Therefore, appointing an experienced law firm is absolutely necessary because, as legal advisors and knowledgeable legal practitioners, they can secure the benefits of the involved parties and propose the insertion, deletion or modification of terms that, in case of a disagreement, will determine what has been agreed. Additionally, the law firm will ensure that the contract is fully compliant with the provisions of the law governing the terms and conditions of the transaction in question.

Additionally, law firms often act and provide escrow services for the implementation of real estate contracts. In these cases, the law firm provides the “escrow service” as a third party. This service works in between the transaction and the law firm oversees its smooth flow. Typically, this service is offered in cases where investors come from a different country than the provider. However, this service is also used in cases where all the parties involved are from the same country.

Moreover, legal advisors are able to advise the investors, sellers or buyers on the strategy needed to be followed in their dealings with real estate transactions and purchases. The real estate market, which will be incorporated into the investors’ portfolio of real estate, is very important and influenced by various factors that determine its future value. Let’s not forget that every investor wants to increase its income flow. The main factors to be considered for each investment transaction of this type are the location, future use, tax system, the reliability of the real estate provider and the resale strategy for the property.

Taking everything into consideration, I would like to highlight that, by appointing an experienced law firm, investors, buyers, sellers and involved providers, secure their rights when signing the contract and are fully informed about the legislative framework and the practical part governs the purchase and sale of real estate.

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An Article by Mr Michalis Economides, CEO and Founder of Chambersfield Economides Kranos, Advocates & Legal Consultants

Article Publication: GOLD Magazine June 2017.

The purchase of a property is generally considered to be a long-term investment so individuals and corporate buyers alike should take proper action before, during and at the closing of a deal, in order to safeguard their interests.

On the other side of the arrangement, sellers also need to preserve their rights, in order to avoid any possible negative consequences that may occur during the closing of the deal, such as cancellation, financing problems or other tax and legal implications.

When deciding to acquire a property, the best investment that any individual or corporation can make is in the appointment of a professional law firm with experience in the real estate market. This is of the utmost importance, in order to ensure that the correct and complete due diligence procedures will be carried out.

Furthermore, the appointment of a professional law firm reduces risks and the time spent with the authorities, while safeguarding the buyer’s rights by ensuring that all the required procedures are correctly followed at the land registry and any relevant financial institutions.

Due diligence includes an official land registry search for all possible mortgages, charges or other encumbrances. Further procedures entail a review of the issued permits, title deeds, zoning regulations and other important legal aspects, in order to ensure that the purchaser is safeguarded at every stage of the process. Law firms are needed during these types of transaction (acquisition and transfer of real estate) in order to ascertain that both the purchaser and the seller are equally protected.

Our experience in numerous and daily real estate transactions has taught us that not all cases are simple and straightforward. For example, a property acquisition might involve an assignment of rights or the purchase could be via a contract with pending title deeds and other parameters and conditions governing the sale and transfer of the property. Consequently, the contract of sale should always be drafted by a professional law firm.

As an international law firm regularly dealing with multiple and complicated real estate transactions, we have – unfortunately and on many occasions –come across cases where the importance of correct due diligence 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, were ignored. This has led to major and unpleasant consequences that could only be resolved by the court. After the signing of the sales contract, another equally important stage is the the execution of the purchase and transfer at the Land Registry. Naturally, all the necessary tax certificates and other documentation must be properly prepared, checked and verified in order to avoid complications at the time of the transfer execution.

It is worth noting that the land registry procedures can be very lengthy and involve significant paperwork. However, an experienced team of lawyers can perform the procedures via power of attorney, thus making the client’s life easier and saving time. In most cases, this procedure means that the purchaser does not even need to attend the land registry.

In summary, by appointing an experienced law firm, individuals and corporations can avoid any unpleasant circumstances that may arise before, during and after the transaction. The law firm will safeguard the investment by carrying out the correct due diligence procedures, preventing any vague and unclear terms from being included in the contract, assisting the financing process through consultation, negotiating the terms of sale on the behalf of the parties, as well as by providing advice with regard to property taxes an any other applicable taxes.

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