CHOOSING AN ESTATE AGENT

The Law and Estate Agents in Cyprus. Choose Carefully

All estate agents must be registered and obtain a licence. A registered estate agent must satisfy the Cyprus real estate Law 273(1) 2004 which stipulates and regulates the manner in which registered estates agents should embark on their business. A registered estate agent must meet certain preconditions including professional indemnity insurance and as the current law exists for a minimum sum of ¤171,000, before being issued with a licence to practise.

A registered estate agent must display prominently his/hers registration certificate.

Beware of illegal activities by non-registered estate agents.  Many unregistered agents may charge as much as 14%  if not more for a sale!  Under the Law, registered estate agents can charge between 3 and 5% on the price plus VAT in addition.  What is actually charged depends on the geographical/local conditions applying at the time of purchase so you should be clear how much you will be charged on the concluded purchase. If there is an agreement this must not exceed 5%. Anything more than that  it is illegal unless of course a higher rate is agreed beforehand and the parties to the agreement give their mutual consent. Commission is always paid by the seller and no  purchaser should be asked to contribute to such costs.