The property exchange with apartments is a process that dates back and has significantly evolved in Greece and Cyprus, following various historical events. Specifically, this process developed prominently in Greece after the 1940 war. It flourished during the 60s, 70s, and 80s, reaching its peak in the 90s, 2000s, and continuing to the present day.
In Cyprus, following the Greek model, the phenomenon of property exchange began after the 1974 war and continued to a greater extent in the subsequent decades until today. Instead of selling the land and receiving payment in cash, the landowner transfers the land to a land development company in exchange for apartments. Let’s examine this method in detail, along with the advantages and problems that may arise.
Property exchange and its advantages:
Lack of expertise or financial capability: Owners who lack the necessary expertise or financial means to develop their land choose this method to utilize their property.
Emotional Connection:
Owners with an emotional connection to their land, such as where their ancestral home is located, choose property exchange instead of selling.
Liquidity:
Some owners opt for property exchange for liquidity reasons, as the project can become a source of income, allowing them to leverage the investment’s appreciation.
Factors affecting the value of property exchange:
The architect chosen to conduct the study has a significant impact on the value of the property exchange. The quality of the architectural study and the choice of materials affect the final value of the apartments. Additionally, the architect’s experience in construction practice is crucial for the project’s value.
Expenses borne by the landowner:
Usually, in property exchange agreements, all expenses are borne by the land development company. However, it is important to consult a legal advisor to ensure proper legal protection. The landowner may be obligated to pay taxes, fees, and other obligations if there are no relevant clauses in the contract.
Pitfalls and problems:
During the property exchange, several problems can arise, such as issues with unreliable contractors or delays in starting the project, leading to legal disputes. It is crucial to have clear and detailed contracts to avoid such problems. Property exchange can be a beneficial process if carefully planned. It is also important to consider the factors affecting the value of property exchange and to consult a legal advisor to protect your rights.
https://www.stockwatch.com.cy/en/article/emporika-nea/yes-property-exchange
ANNA-MARIA EFTYCHIOU
Director of PR & Communication
G&P LAZAROU Estate Agents
[email protected]
