Case Study: How We Eliminated Risks in a Real Estate Purchase Contract in Cyprus

How We Identified and Eliminated Risks in a Property Purchase Agreement Within 48 Hours

Case

A client from Ukraine chose a three-bedroom apartment for his family’s residence in Larnaca. The developer had prepared the purchase contract, and the signing deadline was 2 days. At first glance, everything looked standard, but the client wanted a professional legal review. In such situations, Feod Group lawyers get involved as quickly as possible.

Feod Group’s Objectives

• Conduct a legal review of the property purchase agreement.
• Identify and minimize all risks without changing the agreed price and delivery terms.
• Establish a clear and protected payment mechanism.
• Coordinate corrections with the developer within tight deadlines.
• Maintain the client’s comfort and confidence in the transaction.

What We Discovered: 3 Errors in the Contract

It is common practice that contracts from Cyprus developers are often drafted using a “template” and do not reflect the specific conditions of the deal. Therefore, we focused on the following:

1. The subject of the agreement was described incompletely

The contract lacked mandatory information: cadastral details of the property; technical specifications of the parking space and storage room; discrepancies in square meters between the contract text and the appendices. Such situations are usual for off-plan properties, it’s not an actual error, more of a technical inconsistency in the documents.

Solution:

We unified the measurements and room names, added cadastral references, and attached plans/specifications as integral appendices.

2. Payment structure without a protective mechanism

The developer proposed payment “by stages,” but the stages were not agreed with the buyer; there were no penalties for delays; there was no mechanism for terminating the contract and refunding payments in case of violations.

Risk: funds being frozen, delays, inability to exit the transaction.

We added:

• a transparent payment schedule agreed with the client;
• the client’s right to withdraw in case of delays and a mechanism for refunds.

This transforms the developer’s flexible scheme into a buyer-protective scheme.

3. No seller responsibility regarding documents

The contract did not contain a list of certificates confirming no encumbrances; permits and approvals; technical certificates; sanctions for failing to provide them.

Risk: purchasing a property with mortgages, debts, or illegal construction — with the buyer later bearing full responsibility.

Solution:

We established a mandatory package of documents, deadlines for submission, and liability for non-compliance.

What We additionally improved in the contract

To make the agreement a “functional” protection tool rather than a formality, we:

• Fixed the exact delivery date and the condition of the property (finishing, equipment, technical execution).
• Added a section on utility and operational charges after property transfer.
• Included dispute resolution terms and applicable law.

Result for our client — a legally protected transaction

• Key risks of losing funds or receiving a “different” property were eliminated.
• Price and deadlines remained unchanged.
• Additional agreement with the developer was achieved within 48 hours.
• The client avoided potential losses of around €25,000 (delays, rework, frozen funds, double payments).
• A clear checklist of seller documents and liability for missing items.
• The agreement became transparent, understandable, and controlled.

Most importantly: The client signed the contract fully understanding every clause and being confident that he was buying exactly the property he had chosen.

Why this case matters for future clients

• In 80% of cases, issues in Cyprus real estate transactions arise not because of “bad intentions” by the seller, but due to gaps and inaccuracies in the contract.
• Even under strict deadlines, legal protection for the buyer can be built without conflict with the developer.
• Legal support when purchasing property in Cyprus is not about “fear,” but about comfort, clarity, and transaction speed.

Buying real estate in Cyprus. Why do you need a lawyer and what does he check?

Feod Group — Your Legal Partner in Cyprus

Feod Group is an international law firm providing services in Cyprus since 2007. We review contracts, negotiate with developers, perform due diligence, and protect your interests.

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