Cyprus-Forum.com

by **nhowarth** » Wed Jan 11, 2006 2:27 pm

Hi Cardshark,

I think the confusing thing is the statement about the inability to seek Specific Performance "six months after the date of the contract or six months from the last date of transfer specified therein"

I think the first bit is clear "six months after the date of the contract" This is the date on the contract.

But "six months from the last date of transfer specified therein" depends very much on what your contract says.It may have clause in it that look a bit like this:

In this case, the term "six months from the last date of transfer specified therein" means six months after you have paid the full price AND the Council of Ministers have given their consent to own the property.

You may even have a clause like this in your contract:

In the event that the Council of Ministers shall refuse consent to the Purchasers to purchase or refuses to permit title to the property hereby sold to be put into the name of the Purchasers nominee, then this agreement shall be deemed to create in favour of the Purchasers a lease for a period of 30 years commencing as from the date of delivery of the said Property provided that if at any time during this period of 30 years the Purchasers or their successor in title shall nominate a nominee acceptable to the Council of Ministers the Vendors hereby undertakes accordingly to transfer ownership to that nominee and put title of the Property into that nominees name. The Purchaser will take the possession of the property as soon as the payment of £52.500, is made if the payment is earlier. In this case, the term "six months from the last date of transfer specified therein" means 30 years if the Council of Ministers turns down your application.

Without reading your contract, I do not know if you have lost "Specific Performance".

(I've sent you a Private Message - if you would like to email a copy of your contract to me I will look at it for you and let you have my comments.)

I suggest that you contact your lawyer again and ask if there is anything preventing the transfer of Title to your name. If he replies that there are no problems, then you should ask him to arrange for the transfer to take place.

In addition to your lawyers fees, you will have to pay 'Property Transfer Fees'. These are calculated as follows:

On the first CYP 50,000 - 3%
On the next CYP 50,000 - 5%
On the remainder - 8%

So if you paid CYP 70,000 for the land, you will have to pay CYP 2,500.

If the vendor refuses to agree to the transfer:

a) If your ability to seek 'Specific Performance' has not expired, then your solicitor should advise the Court who will issue a Court order instructing the Lands' Registry to register the Title in your name.

b) If your ability to seek 'Specific Performance' has expired, then you mayl have to take legal action againt him (but your solicitor will be able to advise you).

Regards,

by **cardshark** » Wed Jan 11, 2006 7:51 pm

Nigel

I could not PM you because the Forum Rules said that I had not made
enough quality posts !! I shall very much appreciate your advice so I sent e-mail to the e-mail on your web site.

My Council of Ministers Clause does not even have a thirty year limitation.

my contract says wrote:It is further understood that in the event, or if for any reason whatsoever, the Purchasers do not succeed in obtaining the said permission or the permission is not granted to the Purchasers, the present Contract of Sale does not become null and void, and the Purchasers may request from the Vendors a later transfer and registration of the said Plot into the name of any person or firm nominated/and or assigned by the Purchasers. The Vendors shall comply with the Purchaser's request, upon payment to the Vendors of any balance of the Purchase price and/or otheramounts due under the present agreement, provided that this will not result in any tax or other financial obligation to the Vendors

But I cannot see how the Clause re the Council of Ministers Permission you quote helps bearing in mind the quote you made earlier below (I am a EU National) because it is now no longer necessary for a EU National to obtain Permission from the Council of Ministers.

Nigel wrote:Providing your Contract of Sale was deposited at the Land Registry, the Title Deed is available, AND you are a national of an EU member country, your lawyer could go to the Land Registry tomorrow and have the Title Deed registered in your name.

Only if you are a non EU National, which I am not, as per quote below.

Nigel wrote:If you are NOT a national of an EU member country, then you have to get permission to own the land from a government department known as the ‘Council of Ministers’ (your lawyer should have applied for permission when you bought the land). When the Council of Ministers gives their approval, your lawyer can go to the Land Registry and have the Title Deed registered in your name. Any delay in getting this approval will not affect your ability to seek ‘Specific Performance’. But as soon as you get permission, you need to get the Title transferred to your name.

When did the Republic of Cyprus Law change so that it is now no longer necessary for a EU National to obtain Permission from the Council of Ministers?

The Council of Ministers Permission looks like a red herring now and there seems to be a loop hole for vendors to avoid Specific Performance because if a Council of Ministers Permission is not required then waiting for this does not stop the six month clock counting down from when the Land Registry makes the Title Deeds "available". If the Land Registry does not tell you and there is no obligation on the vendor to tell you, then the six months elapses without you knowing and you lose Specific Performance.

Worse still you said,

Nigel wrote:A further point to note on ‘Specific Performance’ is that the encumbrance it creates expires six months after the date of the contract or six months from the last date of transfer specified therein. So if you don’t act quickly and have the property registered in your name within this time window, the owner can sell it to someone else, use it as collateral against a loan, etc.

This does not seem right that the vendor can take your land and sell it to someone else but the law seems to allow it?

Is it still safe to buy in Cyprus?

by **nhowarth** » Thu Jan 12, 2006 11:12 am

Hi Cardshark,

I have replied to your email and I don't believe you have anything to worry about. But I suggest that you get Title to the land transferred to your name as soon as possible. YOur lawyer will be able to arrange this for you.

When did the Republic of Cyprus Law change so that it is now no longer necessary for a EU National to obtain Permission from the Council of Ministers?

The law changed on 1st May 2004 when Cyprus joined the EU. It is a bit complicated:

If you are a national of an EU member country and are resident in Cyprus, you are allowed to own as much immovable property (a term that includes both land and property) as you wish. To confirm your residency, take your passport and Temporary Resident Permit to your local District Administration Office where the officers will issue a Certificate of Permanent Residence confirming your status.

If you are a non-resident national of an EU member country, you are permitted to own as much land as you wish. But if you wish to own any other sort of immovable property you are restricted to one house or one apartment for which approval is needed from the Council of Ministers.

Regardless of your residential status, if you are a national of a non-EU member country, you will need approval from the Council of Ministers before you are allowed to own property.

This does not seem right that the vendor can take your land and sell it to someone else but the law seems to allow it?

The law doesn't allow it. But there are people here, as there are in all countries of the world, who are prepared to break the law. There was a case reported last year where the same piece of land was sold seven times to different people using forged Title Deeds. And there is a reported case being heard by the court at the moment involving an official from the Land Registry Department:

Is it still safe to buy in Cyprus?

I can only comment on this from a UK perspective. Buying property in Cyprus can be as safe as buying property in the UK but people need to take suitable advice and heed the right warnings.

Regards,

by **cardshark** » Thu Jan 12, 2006 1:15 pm

Thank you Nigel..........Respect

You are right about taking legal advice. I did with the Contract and yet I am still in a position of probably having to spend more money on expensive lawyer time and Court Fees to get what is rightfully mine !! Is it possible to claim costs under an action for specific performance in the Cyprus Courts. It is the vendor's fault that I am having to do this after all !!

by **nhowarth** » Thu Jan 12, 2006 4:03 pm

Hi cardshark

In my experience of dealing with (most) people in Cyprus, it is much easier to get things done if you can meet with people and talk to them face to face. Trying to get things done by telephone and email can be frustrating.

I can remember trying to get the Title to my land - I used to email my lawyer every three months, but nothing seemed to happen. But when I visited the island and spoke with him, things started to move forward.

And even when you do meet people, it's more of a social meeting than a business meeting. You're offered coffee and the have a general chat about the world, the weather, the price of petrol, etc, and eventually you'll talk about business.

This is the way most business seems to be conducted in Cyprus and for those of us who are used to working in a different way, it can be frustrating.

Is it possible to claim costs under an action for specific performance in the Cyprus Courts. It is the vendor's fault that I am having to do this after all

I'm not sure. But I think all it needs is a word from you to your solicitor to get things moving on the transfer of Title.

I don't think that your lawyers fees will be high if you have to seek 'Specific Performance'. In my case, where the owner of the field next to mine claimed that part of my land was his, it cost me CYP 20 for the courts decision. I could have sued the owner of the field for CYP 20, but it would have cost me a lot more in lawyers fees to get the money. And even if I was successful and the court ruled in my favour. there is no guarantee that the owner would have paid me.

Regards,

by **simonwjones** » Sat Mar 18, 2006 2:04 pm

I saw Nigel on Real Estate TV last night - nice house you got there!!!!

by **nhowarth** » Sat Mar 18, 2006 4:40 pm

Thanks Simon,

We've got the garden planted up now - it's coming along.

I've also got a mention in the April issue of 'Woman & Home' - see pages 76 - 79.

Regards,