1. My child’s grandparents gifted property to my child. Can I sell it on my child’s behalf?
Property that belongs partially or in whole to a minor can only be sold by the minor through a court order. As children under the age of 18 years old are considered minors, any sale of property that belongs to them can only be done through their parents/guardians. However, the parents/guardians need to apply to the Courts of Cyprus in order to obtain a court order authorizing the sale of the minor’s property through its legal guardians/parents.
It should be noted however that the courts will only grant the court order if the parents/guardians can prove and show that the sale is in the child’s best interests and that all proceeds from the sale will be used exclusively for the child’s maintenance or education.
2. What if a court order is not obtained and I proceed to sell my child’s property anyway?
If a court order is not obtained authorizing the sale of the minor’s property, the Land Registry will not be able to execute the transfer of the property from the minor to the ‘buyer’.
In the unlikely event that a child’s property is disposed without a relevant court order and/or in violation of the relevant provisions of the law, any disposal may be declared invalid by the Courts of Cyprus and the court may issue any court order necessary / required in order for the minor’s property to be restored back to the same.
3. What if the parents/legal guardians can’t agree between themselves whether to sell the child’s property?
If the legal guardians / parents don’t agree between them as to whether or not the property should be sold (for the minor’s benefit) then the courts will have the final say as to whether or not it is in the best interests of the child for the property to be sold or not.
4. Can I transfer my child’s property onto my name and/or can I mortgage my child’s property?
Parents cannot transfer their child’s property (by way of sale or by way of gift) onto their names or dispose of the property without a valid court order. A court order also needs to be obtained in order for the child’s property to be mortgaged, encumbered, exchanged in any way including leasing the child’s property for over 5 years.
5. My child’s grandparents left money to my child. Can I use or invest that money on behalf of my child?
Parents/guardians can invest money belonging to their child and purchase property on behalf of their child through a court order.
6. I want to buy property in the name of my child / grandchild. What is the best way for me to do this if the property is under construction?
Minors lack legal capacity so they should not sign a Contract of Sale with the developer for property currently under construction as contracts entered into by minors are voidable by the minors until they reach the age of 18.
Therefore, if the property is under construction, it is best for the adult parent/grandparent to buy the property in the name of the parent/grandparent and then once the property is completed, they can then gift the property to the child. The parent/grandparent can also establish a trust for the benefit of the child, thus the parent/grandparent will be both the ‘settlor’ and the ‘trustee’ and as the ‘trustee’ they will hold the property on trust for the child ‘beneficiary’.
7. I want to transfer the family home to my children but I will continue to live there and I want to make sure they will not sell it during my lifetime.
You can transfer the family home onto your children’s name and reserve your right to enjoy, use and reside in the house during your lifetime as well as receive all benefits from the property during your lifetime.
This right can be registered at the Land Registry in Cyprus and will be recorded on the title deed. Thus, while your children will be the registered owners, they will have no power over the property because the beneficial owners will be the parents. Therefore, they cannot sell the house nor have the right to claim or collect any rents during the lifetime of the parents.
For more information about establishing trust for the benefit of your children or about handling your children’s property, please contact us by sending an email to [email protected] (Maria Kannava) and/or [email protected] (Christiana Askanis). You may also visit our page on www.kannavalaw.com