Cyprus-Forum.com

[flavell5]

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!!

[Jerry]

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!!

You could try contacting these people:-

[email protected]

[YFred]

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 your predicament and get legal advice ASAP. Good luck.

[Get Real!]

You should get in touch with every other owner to form/join an appropriate action group.

[Tim Drayton]

A lot depends on the precise terms of the sale contract and as to whether the contract was deposited with the land registry office. If it was, then you are on much firmer ground. You need solid legal advice and, sadly, I do not think you will get that on this forum.

[Svetlana]

As the world's leading expert on this matter I have sent you a pm.

Lana

[Peterc]

you need to find out if the land was mortgaged, as this could now belong to the bank. Therefore you will need to pay off the loan together with the other owners. Who was the developer by the way?

[Tim Drayton]

you need to find out if the land was mortgaged, as this could now belong to the bank. Therefore you will need to pay off the loan together with the other owners. Who was the developer by the way?

Well, yes ... but that really is the job of the purchaser's solicitor at the stage of signing the contract, and the purchaser's solicitor should then ensure that the contract is duly registered and stamped at the land registry office and that the neceassary blocks are put in place to prevent the land or property from being mortgaged subsequently.

[Peterc]

the developer has the entitlement to remortgage the land at any time, especially those who persuade the purchasers to use their solicitor, as most do. Unfortunately human nature says that when buying abroad people forget everything they have learnt about independant legal advice.

[Tim Drayton]

the developer has the entitlement to remortgage the land at any time, especially those who persuade the purchasers to use their solicitor, as most do. Unfortunately human nature says that when buying abroad people forget everything they have learnt about independant legal advice.

In the contract that I entered into with the developer to buy my flat, there is a specific provisions to prevent this. To quote from the agreement:

The Vendor also undertakes not to execute any mortgages or other encumbrances over the said land or property.

So in my case if the developer subsequently remortgaged the land or property he would be in breach of this agreement. There is also I believe a technical procedure that the solicitor can perform when registering the contract with the land registry office which prevents the property from being remortgaged. Only somebody with a good grounding in Cyprus law can really comment authoritatively on this.