27 Nov The importance of depositing the Sales Contract at the Land Registry.
To start with, one of the main reason the parties enter into a sales contract is primarily to safeguard their interest. Thus it is very important for a Purchaser to know and understand the importance of depositing the Sales Contract at the District Land Registry.
Purchasers must be aware that they have the right to deposit the Sales Contract at the District Land Registry within 6 months from the date of signing the contract which gives them some benefits.
After the lapse of the time, a Purchaser will need to obtain a court order in order to be allowed to deposit the Sale Contract.
So, when Purchasing a Property, it is highly recommended to deposit the Sales Contract as soon as you sign it. The truth is that, the fastest you deposit it , the more benefits and advantages you will have.
Some of the benefits a Purchaser automatically obtains by depositing the Sales Contract are the following:
(1) No one else can deposit a Sale contract for the same property.
(2) it gives you rights in case the Seller does not meet his contractual obligations, to obtain a court order to register the property in your name or seek compensation.
(3) you have the right to legally assign or sell your rights to a third party, without the written consent of the Seller.
(4) In case you will take a loan for the purchase of the property, you have the option of assigning the rights of the Sale Contract over to your creditor.
(5) The deposit of the Sale Contract is considered an encumbrance on the Property which in a way,safeguards the priority of the rights of the beneficiary of the contract over other encumbrance holders.
(6) if the sale contract is not deposited within six (6) months from the date of its signing in the Land Registry, then upon transfer of the Property to the name of the Buyer, you will be asked to pay the transfer fees increased by 10%.
For more information related to the above subject matter you may contact us at info@cmcylaw.com or at +35725255059.
Nikolas Christofinis
Advocate
Note: The above article does not constitute a legal advice and may not be relied upon for such purposes. Readers are recommended to take appropriate legal advice on the above subject matter