The right for a lifelong stay in Cyprus real property
Cyprus Law allows for the transferal of ownership rights for real estate with the reserved right for its lifetime use (dwelling). Traditionally, this right is exercised by elderly parents, who grant their real estate to children and still have a dwelling right, thus avoiding an inheritance duties. It should be noted that this regulation is applied only if the relevant record is made with the Cyprus Real Estate Registry. Otherwise the right for lifelong living is considered void.
A Beneficiary in this case has only one obligation – to take proper care of the property, preventing it from being damaged. He or she has a right to give it for rent and receive the payment, whereas a legal owner is not authorised to do so. However, the legal owner in contrast to the beneficial owner is authorised to convey the Cyprus property to a third party. Thus the ownership right for Cyprus real property is divided between a legal owner and a beneficial owner, whereas the former only has the right to register it in his or her own name, while the latter is authorised to dispose of the property.
According to a provision of English common law, the ownership right is divided into legal and equitable, which forms the basis of trust management. The right implies that one can have a legal right assigned by the respective legal papers, while another one has an equitable right to use the said property, i.e. a beneficial right.