Cyprus-Forum.com

[Milo]

The CPAG,s reply to the new Proposals followed by the Cyprus Bar Associations:-

http://www.news.cyprus-property-buyers. ... /id=002612

http://www.news.cyprus-property-buyers. ... /id=002622

I believe also that Conor O' Dwyer,s case still ongoing is amongst other things, about his house being sold to another person after he paid most of it, without his permission while his name is still on it in the Land Registry etc and we can only assume what the solicitor knew. There is a case from January were a British couple very nearly lost their house after a court in Cyprus permitted the Developer to resell after they paid €377k for it and withheld the last payment until snags had been rectified. This was all done in court without their knowledge. Again the solicitor sort of knew what was happening...

http://www.news.cyprus-property-buyers. ... e/id=00691


There is a demo by the CPAG outside the Bank of Cyprus somewhere in Paphos end of the month because of this very issue.

There is no doubt that the banks and their unethical practices are at the the root of the major risks buyers in Cyprus currently face. Just as the behaviour of banks worldwide has been the cause of so much damage to the economies of many countries the banks in Cyprus have set up a scenario that will do so much damage unless the Government acts quickly and decisively.

[pissouri]

Hi, we own an apartment in Paphos. We took delivery of the apartment in June but lots of extras that we paid for were not there. We have found out today that the developer has gone bust as he owed many people lots of money around Paphos. The development is more or less finished except for the indoor pool, gym and sauna areas which are in a terrible state. All the apartments were sold and paid for mainly to British people. Can anyone tell me if we can have the apartment taken off us by the creditors even though we have paid in full for it (sadly cash)? Am slightly worried as I know that the laws are different over there. Also, will we all have to pay to have the areas finished off that were left if the development remains as it is.
Many, many thanks - a very worried lady!!

Sorry to hear about your situation.

Why did you hand over full payment if the development was not completed? I.e. pool, gym, etc. What did your contract say regarding final payment.
I assume that your contract was deposited at the land registry, if so that is some comfort for you. However, if there was a mortgage on the land before your contract was deposited, then the bank has first claim on the property. If this is the case your lawyer should have advised you that there was a mortgage on the land.

As advised by others best thing to do is get an independent lawyer to look into your case.

[B25]

I think this is the procedure I am talking about above:

http://www.cyprusconsulting.com/en/irppc.php

After stamping, a copy of the sale agreement will then be deposited at the Land Registry in Cyprus. For the purchaser’s protection the Land Registry in Cyprus provides a simple and effective legal instrument called “specific performance”. As soon as the Contract of Sale is stamped and deposited at the District Land Registry Office, the purchaser’s ownership rights are protected until the Title Deeds are finally issued and transferred into the purchaser’s name. The Contract of Sale is in the hands of the Land Registry and cannot be withdrawn by anyone, and therefore the property is legally registered in law as belonging to the purchaser, it cannot be leased, sold, transferred or mortgaged without the consent of the purchaser - only the purchaser can alter the property status. Indeed “specific performance” is particularly useful as many purchasers are more than happy to have the security it brings and delay the issuance of Title Deeds for as long as possible to avoid paying the Transfer Fees!

Tim,

specific performance is given to the beneficial owner (the one with the sale contract) so that is villa/apartment/house cannot be remortgaged, sold and whatever else.

As the owner of the land (the developer) is still free to mortgage the land even after the properties have been sold, but in this case the bank only hase 2nd charge on the property.

The whole system is Fucked up if you ask me and for the RoC to allow such idiotic and corrupt babnking practices is just down right disgraceful.

Unfortunately this is the system and we have to live with it until it can get changed.

[Tim Drayton]

I think this is the procedure I am talking about above:

http://www.cyprusconsulting.com/en/irppc.php

After stamping, a copy of the sale agreement will then be deposited at the Land Registry in Cyprus. For the purchaser’s protection the Land Registry in Cyprus provides a simple and effective legal instrument called “specific performance”. As soon as the Contract of Sale is stamped and deposited at the District Land Registry Office, the purchaser’s ownership rights are protected until the Title Deeds are finally issued and transferred into the purchaser’s name. The Contract of Sale is in the hands of the Land Registry and cannot be withdrawn by anyone, and therefore the property is legally registered in law as belonging to the purchaser, it cannot be leased, sold, transferred or mortgaged without the consent of the purchaser - only the purchaser can alter the property status. Indeed “specific performance” is particularly useful as many purchasers are more than happy to have the security it brings and delay the issuance of Title Deeds for as long as possible to avoid paying the Transfer Fees!

Tim,

specific performance is given to the beneficial owner (the one with the sale contract) so that is villa/apartment/house cannot be remortgaged, sold and whatever else.

As the owner of the land (the developer) is still free to mortgage the land even after the properties have been sold, but in this case the bank only hase 2nd charge on the property.

The whole system is Fucked up if you ask me and for the RoC to allow such idiotic and corrupt babnking practices is just down right disgraceful.

Unfortunately this is the system and we have to live with it until it can get changed.

My understanding of things is a bit mixed up, then, but I have never claimed to be an expert. I see a lot of anecdotal evidence to suggest that there are more foreign sellers on the property market nowadays than buyers. It is obviously problems like these that have been aired in a number of recent threads that are to blame. Cyprus now has a bad reputation as a place for foreigners to buy. I still can't help feeling that many buyers have been their own worst enemy and should have sought independent legal advice before signing to anything.

[B25]

I think this is the procedure I am talking about above:

http://www.cyprusconsulting.com/en/irppc.php

After stamping, a copy of the sale agreement will then be deposited at the Land Registry in Cyprus. For the purchaser’s protection the Land Registry in Cyprus provides a simple and effective legal instrument called “specific performance”. As soon as the Contract of Sale is stamped and deposited at the District Land Registry Office, the purchaser’s ownership rights are protected until the Title Deeds are finally issued and transferred into the purchaser’s name. The Contract of Sale is in the hands of the Land Registry and cannot be withdrawn by anyone, and therefore the property is legally registered in law as belonging to the purchaser, it cannot be leased, sold, transferred or mortgaged without the consent of the purchaser - only the purchaser can alter the property status. Indeed “specific performance” is particularly useful as many purchasers are more than happy to have the security it brings and delay the issuance of Title Deeds for as long as possible to avoid paying the Transfer Fees!

Tim,

specific performance is given to the beneficial owner (the one with the sale contract) so that is villa/apartment/house cannot be remortgaged, sold and whatever else.

As the owner of the land (the developer) is still free to mortgage the land even after the properties have been sold, but in this case the bank only hase 2nd charge on the property.

The whole system is Fucked up if you ask me and for the RoC to allow such idiotic and corrupt babnking practices is just down right disgraceful.

Unfortunately this is the system and we have to live with it until it can get changed.

My understanding of things is a bit mixed up, then, but I have never claimed to be an expert. I see a lot of anecdotal evidence to suggest that there are more foreign sellers on the property market nowadays than buyers. It is obviously problems like these that have been aired in a number of recent threads that are to blame. Cyprus now has a bad reputation as a place for foreigners to buy. I still can't help feeling that many buyers have been their own worst enemy and should have sought independent legal advice before signing to anything.

Agree to a point, but to be fair to many, they did seek legal advice, but the advice was crap or corrupt. The people that bought >2 years ago were buying properties like hotcakes and just believed everything they were told, and why wouldn't they. it is only of more recent stories and awareness that has shone the light on these problems. personally I blame the lawyers for not looking after their clients but their own pockets. Not all lawyers, but most IMHO.

This country has done it self no favours when it comes to the property market, sadly.

[purdey]

I wonder how many sought independant legal advise ? How many took the easy route and used lawyers recommended by developers ?

[pissouri]

As the owner of the land (the developer) is still free to mortgage the land even after the properties have been sold, but in this case the bank only hase 2nd charge on the property.

NOT SO, in order to get a mortgage the developer would need the consent of the persons with contracts deposited at the land registry. Or alternatively have a clause in the initial purchase contract allowing the Developer to mortgage without the consent of the buyers.

[B25]

As the owner of the land (the developer) is still free to mortgage the land even after the properties have been sold, but in this case the bank only hase 2nd charge on the property.

NOT SO, in order to get a mortgage the developer would need the consent of the persons with contracts deposited at the land registry. Or alternatively have a clause in the initial purchase contract allowing the Developer to mortgage without the consent of the buyers.

No, you are wrong, as the owner of the land he can mortgage whenever he wants without the permission of the contracts already deposited.

Buyers with sales contracts are only have the beneficial use rights to the property, the land owner has the legal rights, mortgage, sell, assign and anything else.

Sorry, the way it is.

[Milo]

As the owner of the land (the developer) is still free to mortgage the land even after the properties have been sold, but in this case the bank only hase 2nd charge on the property.

NOT SO, in order to get a mortgage the developer would need the consent of the persons with contracts deposited at the land registry. Or alternatively have a clause in the initial purchase contract allowing the Developer to mortgage without the consent of the buyers.

While that is true in many cases it does,nt happen, in some circumstances property developers can still raise a mortgage on the land on which they have built properties without their buyer’s permission or knowledge – even though the buyer may have paid for ‘their’ property in full and may have been living in it for many years.

Ultimately, property buyers are the ultimate guarantors for these mortgages which result from inadequate legal protection and unethical banking practices employed by many of the Cyprus banks.

Two property developers have already gone bust so far and the banks have told a number of their buyers that their homes could be taken away from them and sold to recover the developers’ debts.

If a Developers mortgage is on the Land your property is situated then the mortgage as I understand it has to be paid off before TD,s can be issued to the purchasers which may be many years. One lot of apartment owners have got together and paid the Developers mortgage off plus his taxes as he was about to go under, thus saving their properties from the banks clutches and then being able to achieve their TD,s.

This is not the case with all Developers at all and there are excellent Lawyers out there too. As for the Banks well who knows

And the reasons why buyers are now seeking their TD,s asap.

[Milo]

As the owner of the land (the developer) is still free to mortgage the land even after the properties have been sold, but in this case the bank only hase 2nd charge on the property.

NOT SO, in order to get a mortgage the developer would need the consent of the persons with contracts deposited at the land registry. Or alternatively have a clause in the initial purchase contract allowing the Developer to mortgage without the consent of the buyers.

No, you are wrong, as the owner of the land he can mortgage whenever he wants without the permission of the contracts already deposited.

Buyers with sales contracts are only have the beneficial use rights to the property, the land owner has the legal rights, mortgage, sell, assign and anything else.

Sorry, the way it is.

Spot on, unless you have Deeds you can not raise a loan on your property alter it in any way sell it without the Developers consent (and fee) IF you have brought a property with cash and then found later that it has a mortgage on it by the Developer as one buyer we know did, when he came to try and sell he was instructed by the Bank who holds the Developers debt to find a cash buyer only which limits the market for them.