or for more complicated matters such as accident claims, medical negligence, property disputes, personal disputes and so on. Legal issues are a part of everyday life and it is very important to learn how to deal with them efficiently with the help of smart planning and the assistance of the right legal consultants. Based on my experience, the following are the most common legal issues on which advocates in Cyprus are being asked for advice.

1. Formation of a New Legal Entity (Company Incorporation)

During the initial stage of setting up a business, it is highly recommended that new Legal Entities obtain legal consultation from an accredited law firm with experience of business and tax law issues. What happens in the initial stage will follow the operational life cycle of the company’s business development and corporate obligations.

Therefore, with the assistance of legal consultants:

• The right type of company will be selected and formulated in a favorable jurisdiction, taking into consideration the tax laws and business operations of the chosen jurisdiction.
• The Memorandum and Articles of Association will clearly outline all the general terms of the new entity and will specifically address the conditions regulating the relationship between the involved contracting parties.
• A possible shareholders’ agreement will document shareholders’ relationships by specifying the responsibilities and rights, meetings, the decision-making process, terms and conditions of a voluntary resolution, shareholders’ capital issuance and transfer as well as the necessary mechanism for common disputes that may arise during the company’s operations.
• The employment contract will define and clarify the parties’ relationships and duties.
• A confidentially agreement will secure the preservation of the new development ideas and concepts of the new entity. Business owners will protect their newly established company via this methodology and by implementing the right procedures and strategies to deal successfully with common uncertainties and misunderstandings that may arise during the firm’s business development and operations.

2. Intellectual Property

Fearless competition, cross-border transactions, constant availability of information and development of businesses abroad have established a new reality and prerequisite regarding the protection of intellectual property rights. The registration of Intellectual Property such as trademarks is a business investment that should not be neglected since it adds value to the services / products of a business and provides instant recognition and differentiation from the competition. Subsequently, the registration of Intellectual Property rights is highly recommended and the process must be supervised by a law firm with experience in this matter, in order for the proper guidelines to be implemented on both a national and international level.

3. Employment Law

The relationship between employer and employees should always be well-defined and secured through an employment contract, since a dispute between the parties may turn into a major legal liability. With an employment contract in place, the business code of conduct is specified, the parties know their rights, responsibilities, tasks and evaluation methods. With the relationship properly established, all the parties know exactly where they stand.

4. Real Estate – Property Sales and Purchase Contracts

The sales purchase contract is the most important document in any transaction, since it outlines all the rights and appropriate actions to be taken, should a dispute arise, and documents all the possible risks that may lead to a disagreement. A real estate property acquisition requires significant investment.

Consequently, it is essential that the drafting of the contract agreement to be undertaken only by legal advisors, who are responsible for safeguarding the interests of all the parties involved and ensuring that the terms and conditions are fully compliant with the provisions of the legal framework that governs the jurisdiction in which the transaction takes place.

Furthermore, a law firm can act as a mediator and provide escrow services until the completion of the business transaction, meaning that the law firm will be responsible for overseeing the transaction progress and only when all due diligence has been performed and the terms and conditions are satisfied, then, upon the instructions of the client, will it proceed with the release of the funds and complete the transaction.

5. Commercial Contracts

We all deal with commercial contracts, either oral or written, as part of our daily routine. As mentioned above, a contract is a legally binding agreement that should always exist when two or more parties are forming a business relationship of any kind, no matter the size of the entity or the value of the deal. It is advisable to spend some time with your legal advisors and draw up a proper contract, to limit any future disputes and drawbacks that will affect your future business operations. A properly drafted contract agreement should clearly state the obligations and rights of the relationship between two or more parties, as well as define the nature of the relationship, its duration, the tasks of the parties, confidentiality and other important aspects.

6. Tenancy Issues

The laws governing the relationship between a tenant and landlord have recently been amended in Cyprus, in order to change what comprised a series of time- consuming legal processes that a landlord needed to go through in order to evict tenants who violated their agreed responsibilities and to recover outstanding rent. But it has always been essential to have a well-structured lease agreement, which clearly addresses all possible future scenarios that may lead to a dispute, states the responsibilities and rights of each party, as well as the timeframe of the agreement. I would like to emphasize on the importance of tenancy agreements between private owners and legal entities.

In my opinion, the appointment of an expert legal consultant should be required in order for property owners to avoid the unfortunate consequences of the discontinuation of business operations on the part of the legal entity or lack of financial collateral.

7. Loan Restructuring

Loans, mortgages and debts can frustrate and fill people with anxiety. Trusted lawyers / certified liquidators and insolvency practitioners will examine whether legal entities and/or physical persons have the ability to repay and may provide several consultative restructuring plans that aim to activate the appropriate debt dealing mechanisms, i.e. through restructuring or by lengthening the repayment period of the amount or exchanging the debt for a real estate asset, etc.

8. Divorce

The dissolution of a marriage is, of itself, a very stressful process and becomes even more stressful for the parties when children are involved. It is, therefore, essential to have a trusted lawyer who will help in all the required procedures, including the maintenance of children and spouse, custody issues, the division of family assets, etc.

9. Accident Claims

Being involved in a motor accident, even a minor one, is not always as straightforward as it initially seems, and disputes may arise between the involved parties. Therefore, legal representation is a necessity to avoid possible discrepancies and ensure that, where relevant, you receive the greatest possible compensation. Besides calling for medical assistance for any injuries, you must contact the police, your insurance company and your lawyer, so as to properly protect your legal rights. Moreover, it is of equally great importance that you take your own photos, not move your vehicle until the police and the insurance company are on the scene and note the full contact details of any witnesses to the accident.

10. Medical Negligence

In recent years, there has been an increase in the number of cases of alleged malpractice and/or liability (cases of medical negligence). People are more aware than ever of their right to question the quality and the result treatment that they or a family member have received and to act accordingly. For an incident to be characterized as medical negligence, certain conditions must be met. According to the relevant regulatory and legislative framework, in civil cases, the components of a three- part test should be established and proven on the balance of probabilities, whereas, in criminal cases, considering medical negligence-related convictions, the standard of evidence that needs to be met is “beyond any reasonable doubt”. Medical malpractice incidents are rarely deemed to be black and white cases, since they may be based on subjective and contradictory opinions, different types of medical practices and techniques, lack of diagnosis, medical misdiagnosis, surgical error, anesthesia error, unforeseen events and many other factors. Therefore, it is prudent, when such incidents occur, to seek the assistance and consultation of a law firm experienced in instances of medical negligence, in order to fully discuss the case and possible action. In general, whether an individual or a business, it is wise to seek legal advice on matters that involve relationships with third parties, so as to safeguard your rights. An experienced law firm has the knowledge and know-how to proactively delineate the status of relationships and assist in the prevention of disputes.

The post The 10 most Common Legal Issues in Cyprus appeared first on Chambersfield Economides Kranos.

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.

The post Real Estate Contracts & Their Commitments appeared first on Chambersfield Economides Kranos.

English Translation Follows

Υποθέσεις που αφορούν διαφορές µεταξύ των ιδιοκτητών ακινήτων και ενοικιαστών, συνήθως, διαρκούν από τρεις µήνες έως και τέσσερα χρόνια. Αρκετές είναι οι φορές, που η διάρκεια των υποθέσεων είναι επιβλαβής προς τα συµφέροντα των ιδιοκτητών ακινήτων.

Η µη καταβολή των οφειλόµενων ενοικίων, πρώτιστα έχει επίπτωση στον ιδιοκτήτη, αλλά εν συνεχεία και στον τοµέα της οικονοµίας, λόγω της µείωσης της αγοραστικής του δύναµης. Αρκετές είναι οι περιπτώσεις που οι ιδιοκτήτες ακινήτων διαπραγµατεύονται µε τις τράπεζες, γιατί τα εν λόγω ακίνητα είναι υποθηκευµένα και τα µηνιαία ενοίκια καταβάλλονται έναντι των δανείων τους.

Ταυτόχρονα, οι ιδιοκτήτες ακινήτων έχουν υποχρεώσεις προς τους ενοικιαστές. Συνεπώς, οι ιδιοκτήτες ακινήτων δεν επιτρέπεται να έχουν πρόσβαση στα ακίνητα, δίχως τη γραπτή άδεια ή συγκατάθεση των ενοικιαστών ή χωρίς την απαιτούµενη εξασφάλιση αδείας από το Δικαστήριο. Η παρούσα νοµοθεσία προστατεύει τους ενοικιαστές, παρέχοντας αρκετές ασφαλιστικές δικλίδες, νοουµένου ότι τηρούν τις υποχρεώσεις τους, βάσει των ενοικιαστηρίων εγγράφων.

Ενοικιαστήριο έγγραφο
Με γνώµονα τη σωρεία προβληµάτων που αντιµετωπίζουµε καθηµερινά στον τοµέα των ενοικιάσεων, η ορθή πρακτική που διασφαλίζει τα δικαιώµατα των ιδιοκτητών ακινήτων και ενοικιαστών, προϋποθέτει την ετοιµασία ενός ορθά δοµηµένου ενοικιαστηρίου εγγράφου.

Ένα ορθά δοµηµένο ενοικιαστήριο έγγραφο καλύπτει όλα τα πιθανά σενάρια που ενδέχεται να προκύψουν µελλοντικά, περιέχει τις απαραίτητες εξασφαλίσεις µέσω εγγυήσεων ή άλλων προνοιών και αναφέρει τις υποχρεώσεις και τα δικαιώµατα των ιδιοκτητών ακινήτων και ενοικιαστών. Παράλληλα, είναι σηµαντικό να αναφέρουµε ότι τα ενοικιαστήρια έγγραφα εταιρειών χρήζουν δέουσας προσοχής και πρέπει να φέρουν τις απαραίτητες προσωπικές εγγυήσεις φυσικών προσώπων προς αποφυγή µελλοντικών προβληµάτων που µπορεί να προκύψουν, σε ενδεχόµενη δικαστική διαµάχη.

Τροποποίηση ισχύουσας νομοθεσίας

Προσωπικά προτείνω ότι η υφιστάµενη, ισχύουσα Νοµοθεσία και οι Κανονισµοί της Κυπριακής Δηµοκρατίας στον τοµέα των ενοικιάσεων χρειάζονται τροποποίηση, υιοθετώντας µεταξύ άλλων τα πιο κάτω σηµεία:

• Υιοθέτηση κοινής νοµοθεσίας και διαδικασιών για όλα τα ακίνητα, κάλυψη όλων των ειδών ενοικιάσεων, για όλες τις περιοχές της Κυπριακής ∆ηµοκρατίας. Η ισχύουσα νοµοθεσία, λαµβάνοντας υπ’ όψιν την περιοχή ή την ηµεροµηνία ανέγερσης του υποστατικού καθορίζει την επιλογή του Πολιτικού ∆ικαστηρίου ή ∆ικαστήριο Ελέγχου Ενοικιάσεως. Η εφαρµογή νέων νοµοθεσιών και κανονισµών µπορεί να απλοποιήσει αυτήν τη διαδικασία, ώστε η εφαρµογή να είναι εύκολη, ξεκάθαρη, αποδοτική και σύντοµη για την εκδίκαση των υποθέσεων. Έτσι, προτείνω όλες οι υποθέσεις να εκδικάζονται στα Επαρχιακά Δικαστήρια λόγω του µεγαλύτερου αριθµού διορισµένων δικαστών, σε σχέση µε τα Δικαστήρια Ελέγχου Ενοικιάσεως.
• Παύση του όρου “θέσµιος” ενοικιαστής. “Θέσµιος” Ενοικιαστής καλείται ο Ενοικιαστής, ο οποίος µετά τη λήξη και/ή τερµατισµό του ενοικιαστηρίου εγγράφου, παραµένει στο υποστατικό, διατηρώντας τα ίδια δικαιώµατα και υποχρεώσεις, όπως προκύπτουν από το ενοικιαστήριο έγγραφο. Αυτό που εισηγούµαι είναι µετά τον τερµατισµό του ενοικιαστηρίου εγγράφου, να υπογράφεται εκ νέου ανανέωση των ενοικιαστηρίων εγγράφων.
• Συντόµευση και απλοποίηση των δικαστικών διαδικασιών. Οι υφιστάµενες διαδικασίες ορίζουν ότι ακόµη και αν εκδοθεί απόφαση του Δικαστηρίου, ο ιδιοκτήτης πρέπει να προχωρήσει σε επιπρόσθετες διαδικασίες, για να ανακτήσει την κατοχή του υποστατικού του και να εισπράξει τα οφειλόµενα ενοίκια. Προτείνω την εφαρµογή µιας κοινής διαδικασίας στο ∆ικαστήριο, όπου µε την απόδειξη του οφειλόµενου ποσού και/ή άλλων παραβάσεων της συµφωνίας, άµεσα να εκδικάζεται η υπόθεση εντός των επόµενων έξι µηνών. Σε περίπτωση αµφισβήτησης του οφειλόµενου ποσού, θα πρέπει να υπάρχει ταχεία εκδίκαση σε πλαίσιο σύντοµο ή/και ένορκων δηλώσεων που δεν θα υπερβαίνει τον ένα µήνα.

Εν κατακλείδι, προσωπικά πιστεύω ότι είναι ορθό να προχωρήσουµε σε αναδιοργάνωση του πλαισίου των Νόµων και Κανονισµών που αφορούν στις ενοικιάσεις, προς απλοποίηση των διαδικασιών και προστασίας ιδιοκτητών ακινήτων, αλλά και ενοικιαστών.

Cases relating to the contractual and legal relationship between property owners and tenants, demonstrate that the existing legislation requires review and modifications in order to safeguard equal legal protection for all parties engaged. The existing legislation concerning property owners, consist of numerous procedures and requirements, which the owner is called upon to follow, for the recovery of the due rent and/ or repossession of the leased property.

Tenancies related with disputes between property owners and tenants usually last from three months to four years. There are many examples where the duration required, for the resolution of the disputes, becomes harmful to the interests of the property owners.

Non-payment of the due rent primarily has negative consequences to the owner, which ultimately create a harmful side effect to the economy, overall, due to the diminished purchasing power. There are many instances where the property owners, proceed with negotiations with the credit institutions due to the fact that their properties are mortgaged and, the monthly rents received are used as monthly installments to the credit institution.
Simultaneously, the property owners have several obligations towards the tenants i.e. property owners are not allowed to access their properties, without primarily notifying the tenant. The existing legislation protects the tenants by creating safety net provided that they meet their obligations, as these derive, from the rental agreement.

Tenancy Agreement
The acknowledgement of the complications, which arise, on a daily basis in the rental sector, the suitable practice which is to be followed in order to safeguard the rights of property owners and tenants, is the preparation of a solidly structured rental agreement.

A complete tenancy agreement includes all possible scenarios that might be appear in the future, contains the necessary guarantees through the applicable provisions and entails, in a detailed manner, the obligations and rights of property owners and tenants.

coConcurrently, it is essential emphasize that corporate rental agreements need to be assessed thoroughly and contain the necessary personal guarantees, in order to avoid possible future complications, which may lead to time consuming litigation.

Modification of the existing legislation

Personally, I suggest that the existing legal and legislative framework of the Republic of Cyprus is in a great need of modification, through the adoption of, inter alia, the following recommendations:

• The enforcement of legislation and procedures, applicable to all properties, in association with all types of rents, for all the regions of the Republic of Cyprus. Through the existing legislation the suitable forum is selected on the basis of the area of the dispute and property as also, the time period of construction of the property. The previously mentioned parameters define whether the case is to be submitted at a District Court or at the Court of Rental Disputes. The suggested modifications may contribute to the simplification of the procedure in order for an easier, clearer and faster hearing of the arising dispute. Thus, my suggestion is that all cases are to be submitted at the dispute courts where there is higher number of judges in relation to the Court of Rental Disputes.
• Termination of the term “Established Tenant”. The term “Established Tenant” is applicable in instances where the tenant preserve physical possession of the leased premises, although the duration of the tenancy agreement has expired, thus the tenant maintains the rights and obligations, initially entailed in the tenancy agreement. Therefore, my suggestion is to proceed with obligatory renewal of the tenancy agreement immediately upon its expiration.
• Simplification of the litigation procedure. As per the existing process even if a court decision is issued, the owner is obliged to proceed with additional measures, in order to recover the physical possession of his property and to collect the outstanding rent amount. My recommendation is the implementation of a common court procedure, whereby, once the outstanding amount and/or breach of the Tenancy Agreement are proven, the case shall be immediately heard the court within the time frame of six months. In instances where by the outstanding amount is disputed there should be an accelerated trial and / or the submission of affidavits, which shall not exceed the period of one month.

In conclusion, personally I believe that it is necessary to proceed with the reevaluation of the present legal framework, which relates to rentals, by simplifying the applied procedures and through the enhanced protection of the rights of property owners and tenants.

The post Tenancy Agreements | Parliament Suggestions appeared first on Chambersfield Economides Kranos.