Cyprus-Forum.com

[Marina2005]

Hi,
I've seen a house I like from a registered developer and I'm not sure how I should go around making my offer?

Do I make the offer and then give him a small deposit (£1000) to hold the property until the contract is signed and with the signing give him another small amount of money until the house is ready??

Its on the finishing touches but still needs about 2 months I think to finish totally!!

He said to me that he will only sell the house when someone gives him £100,000 and then the rest when is finishes, is n't that a silly amount, what happens if he goes bankrupt or something, were do I stand????

Would appriecate any info what so ever.

Thanks

[Svetlana]

Hi Marina

Agree the price, pay the £1000 (non-refundable deposit), get an independent solicitor, pay the developer, say, £90,000 and withhold the balance until delivery, then withhold, say £3,000 for snagging.

The deposit will be refundable only in the case that the developer does not have the right to build or sell (no Title Deeds/Planning Permission/Building Permit).

Ensure your Contract has penalty clauses against late delivery and caps the Cancellation Fee at no more than £2,000.

Let me know if I can help further. I have doen some property investment here.

Lana

[Marina2005]

I knew I could rely on you Lana mou, thanks!

I was also told to hold back £5000 until I get the final deeds?

So you agree with giving him such a large deposit? I have just sold my house and on signing the contract they will give me 25% and the rest on moving in!

[Svetlana]

Hi Marina

Yes, you can try to hold money back agaisnt Title Deeds but the developer may then ask you to pay interest on this amount until they become available.

Why he is asking for so much is that you are buying at such a late stage in the build; normally when you buy off plan, you pay a 30% deposit on signing the contract and stage payments linked to stages of the construction. It sounds 90% complete, so offer 90% or less on contract signing; do NOT pay the full amount, he will have little incentive to complete.

As I mentioned to someone else, building work ceases duirng the month of August, so 'two months away' may be 'three months away' in reality.

Lana

[Marina2005]

Thanks a lot for your help Lana, I have definatley learnt something new!

[hincyprus]

as they say to horses.......wo, wo ,wo, not so fast.

1. Get a solicitor first.....
2. You need to be very precise as to the build stage before giving the developer money willy nilly.
3. Ask a Quantity surveyor to do a quick costing. (maybe £150). I know a very good English guy if you want to contact him.
4. Can you choose your tiles/sanitary/etc etc
5. Get the developer to send all current deeds and copies of building permissions to your solicitor (lawyer). There should be two building permissions.
6. Get a finite delivery date and get penalty clause for late delivery.
7. Is he providing all services.
8. Is the road made up or a track?
9. Is it in an area where he must make provision for connecting to mains sewerage eventually?
10. Hold backs are normally to cover rectification and a small hold back against the deeds which are currently taking up to three years to be released.
11. Have you got a full specification of what is included and what may be an extra.
12.Never pay any money to a builder/developer unless it is through your lawyer and do not use his lawyer, "for a speedy contract".
13. Finally look at some of his finished properties and talk to the owners.....you may be amazed at what they say.

Don't forget "buyer beware"

good luck hope you get what you want.

h

[Svetlana]

Hi Hincyprus

I think the property is nearly completed.

Marina

Just to say if you withhold £5000 for the TD dont forget to put the money away and dont spend it, becasue when the TD become available you will also have to pay Property Transfer Tax, whcih will be £4000 if regeisterd only inyour name or £3000 if registered in two names.

Lana

[Marina2005]

Thanks again Lana

Also to you Hincyprus, thanks for taking the time to write me that, I will print the whole thread and use it.

[cannedmoose]

Great advice both of you. Lana, can I suggest that when you have time you turn this thread into a sticky, it would certainly be useful advice for others.

[Svetlana]

...er how? I have looked through my Moderator's Handbook but an find no guidance on how to do that.

Lana