How Hinode Protected a Foreign Buyer from an Expensive Construction Mistake

Buying real estate abroad is always a kind of adventure, full of risks and unexpected complications. This is especially true if you are entering a foreign market for the first time, where small details and hidden pitfalls can easily escape your attention. Cyprus, which attracts investors with its picturesque landscapes and favorable conditions, is no exception: behind the bright exterior of new buildings often lie problems that can lead to serious losses in the future.

This is exactly the situation our client, a foreigner buying property in Cyprus for the first time, found himself in. Although everything was formally ready for transfer, he decided to seek professional support to thoroughly verify the quality of the property. As it turned out, this decision was timely and justified.

OVERVIEW OF THE SITUATION

We were approached by a client who was already in the final stages of a transaction—he was about to sign the deed of transfer for a three-room apartment in a new residential complex in Cyprus. The documents were ready, the property looked complete, and, as is often the case, it would have been possible to simply sign on the dotted line. But the client chose a different path—he wanted to be sure that everything really corresponded to what was stated in the contract: from the quality of the finish to compliance with technical standards. This approach demonstrates not only attentiveness, but also an understanding of the risks that can arise when a decision has already been made and there is no turning back.

We got involved at this important stage and conducted a full due diligence – a comprehensive technical and documentary inspection of the property. It included an expert inspection of the apartment, verification of plans and specifications, and the compilation of a snagging list — a detailed list of all identified shortcomings and defects, from non-functioning sockets to deviations in the installation of plumbing fixtures. This approach not only helps to see the real picture, but also provides a powerful tool for further negotiations with the developer. After all, when you have specific facts and conclusions in your hands, it is much easier to get the defects fixed before signing the final documents.

WHAT WE FOUND: NOT JUST MINOR ISSUES

During a detailed inspection, Hinode specialists identified a number of serious deficiencies that could lead to significant inconvenience and financial losses. The quality of the finishing work differed significantly from what was stated—the actual work did not meet the standards specified in the contract. In addition, the engineering systems were unstable, which could have resulted in additional costs and made it difficult to use the property on a daily basis.

The most serious violation was the unauthorized change in the layout made by the developer without the buyer’s consent. This led to a reduction in living space and functionality.

Such deviations not only violate contractual obligations, but also directly affect the market value of the apartment and its liquidity. That is why a professional inspection before signing the acceptance and transfer act is crucial.

HOW WE HELPED THE CLIENT PROTECT THEIR INTERESTS

Based on the snagging list, we prepared a detailed report with photographs, technical comments, and analytical conclusions. This document became a key tool in negotiations with the developer. Denis Fedosov, an independent consulting engineer who also has a legal education, participated in the dialogue, which allowed us to competently build a strategy to protect the client’s interests. As a result of the discussions, we were able to achieve the following conditions:

• reduce the final cost of the apartment, thereby compensating for some of the identified defects;
• obtain a written commitment from the developer to eliminate 95% of the defects at their own expense;
• restore the original layout, thereby restoring the original living space and maintaining the level of comfort.

All agreed work to rectify defects is supervised by Hinode specialists. We monitor quality and deadlines to ensure that the customer receives exactly the result they expected when making their purchase.

CONCLUSION

This case clearly demonstrates that a professional approach and thorough inspection of the property are not just recommendations, but a prerequisite for a successful real estate purchase. Thanks to comprehensive inspection and quality control, Hinode’s client not only protected their investment, but also avoided unnecessary financial expenses and future costs.

Our customers appreciate the high level of service and results, which is why they come back to us when choosing new properties. If you are planning to buy real estate in Cyprus, do not put off technical and legal checks until the last minute. Contact Hinode for a comprehensive risk assessment and to confidently complete your real estate purchase.