By Angelina Alyabyeva,
Trainee Lawyer, AML CYSEC Officer, LLB (HONS)
Title Deed is an official legal document that serves as proof of ownership and property rights over the immovable property, which is issued by the Department of Lands and Surveys. Established and governed by the Immovable Property (Tenure, Registration and Valuation) Law, Cap 224
The title deed contains essential information about the property, including the location, size, boundaries and details of the owner.
There are several important reasons why it is important to obtain a title deed:
· Confirmation of ownership – a title deed is an official proof of ownership of the property confirming that an individual is a legal owner of the house, plot of land or the apartment and has the right to possess, use the property on their full discretion.
· Legal protection – a title deed is a legal protection for the property rights ensuring that the ownership is recognized and protected under the laws of the Republic of Cyprus, meaning that an individual is safeguarded from any potential disputes or claims regarding ownership.
· Transfer of property – if an individual determines to sell or transfer the property in the future, having a title deed makes the process much smoother, faster and clear. Prospective buyers will usually require a title deed to verify ownership and complete the transaction.
· Inheritance and succession – a title deed serves as significant documentation for inheritance purposes establishing legal foundations and basis for passing on the property to heirs in accordance with their wishes, providing a clear and smooth, less problematic transfer.
· Property valuation – a process of determining the monetary value or market value of a property – a property with a title deed is generally more marketable and easier to sell, since potential buyers are willing more to invest in properties that have a proper legal framework as it simplifies the buying process and reduces any risks alongside with abolishing disputes over the prices.
· Mortgage matter – lenders and financial institutions typically require a valid title deed as collateral for mortgage financing. In case if a property lacks a title deed or has title deed issues, it may limit the availability of financing options for buyers.