Cyprus-Forum.com

[Paphitis]

Connor is most certainly a massive let down to his family and friends. He is displaying much immaturity with his anti Cyprus campaign even after the Developer tried to resolve the issue by offering him a refund of all monies.

[Svetlana]

Are all these crazy things just happening in Paphos, because here in the capital nobody ever complains about developers, deeds, etc…

So many of us have bought and sold homes yet I never hear of any problems…

Hi GR

The problem was/is worse in Pafos because:

i) the 2000/2007 Property boom overwhelmed Land Registry/Valuations Department employees, most of who cannot read without their lips moving.

ii) the lack of resale property meant that the flood of incomers bought off plan.

iii) many Cypriots buy older properties, or build their own on family land or buy a plot and build themselves - all of which means they are not faced with the TD problems.

May I ask GR and Paphitis, did the properties you bought have their Deeds already?

Lana

[Milo]

Don't get me started on Title Deeds......!!!


lana

Kafenes does,nt want to talk about them Paph is asleep and in a dream world as far as Cyprus justice is concerned, but I would like to hear your opinion

OK, this is my first hand experience. My developer has ceased trading; there were a number of reasons leading to his downfall, not all of his making. We remain good friends and we swopped 'Xristo Anesti' over the weekend, so this is not an anti-Cypriot or personal issue.

Because of the lack of protection of Cypriot Property Law- which even fails to match the standard of Third World countries such as Sri Lanka! - I and hundreds of others find myself in the position of losing our homes.

It goes like this: the Developer goes bankrupt or ceases trading with large debts - around €4,000,000 in this case. No Title Deeds have yet been issued because of the indefensible delays in TD procedures. The TD are therefore assets of the developer and the Creditors make claim on these properties - and we are talking about 100+ for this developer alone.
I checked at Land Registry and my record, along with all others lists the Creditors and amounts outstanding.

So, yes I used a long established and reputable Paphian lawyer and yes the Contract was lodged with Land Registry for Specific Peformance, yet although neither I. nor the developer, has ever had a mortage on it, my home may be taken away from me. How can the Law allow such a situation to occur?

Well, I am more fortunate than some, in that the developer had no mortgage on the land and I have sufficient funds to fight a legal battle.
So, since July, I have been fighting to save my home; Court Hearing after Court Hearing with, I hope, the final Court Order in the next couple of weeks. the cost so far: €25,300. I will then be faced with Property Transfer Tax of €xx,xxx but I will tackle that when I come to it!

So, I am luckier than some; but how will those who cannot afford legal proceedngs or have discovered there is a hidden mortgage on their home, survive. That's another point: how can the system allow someone else to take a mortgage out on your land/home AFTER you have bought and paid for it?

Conspiracy theorists have suggested that XXX Bank is taking a tough stance so that a lot of cheap properties will fall into its lap - but who knows, who is doing what to who!

Anyway, I will report back when I have a conclusion!

Lana

Blimey Lana The banks I believe have much to do with the property mess that is now unfolding, unethical lending on properties they know had been sold on, BUT were quite aware had,nt or were unlikely to recieve Deeds so they had their collaterol. Ignoring the fact that buyers could lose their homes when loans by Developers could no longer be serviced. Its amazing that banks will actually take homes away, I,m not sure they will, but they will 'own' it I assume. Of course Banks have much to answer for the world over and have been bailed out by govts, the problem here is that the govt is,nt bailing them out of Developer debts and instead people have the risk of losing homes which seems to be unique.

If a mortgage is taken out on the land after you have lodged your contract in the LR they cannot have your property as it was done after the fact and legally is a second charge. So in that case properties should have been safe. Your story makes this worrying

The ones that fell into this unwittingly are those that bought properties expecting the Lawyer to find this fact out by a search but did,nt, what very few know is that many Lawyers do not have to do this unless asked, you can go down to the local LR yourself with your contract and for a few euro,s find out if there is a mortgage on your land/property and more importantly WHEN it was taken out

What I did,nt realise was that a property without Deeds becomes part of a bankrupts assets. I understood that only properties with developer mortgages before lodging contract at LR were the ones at risk.

You have a good chance of sorting this out with a good Lawyer Lana, hope it all goes well for you, those that exhaust Cyprus courts and feel let down here can apply to the ECHR next as its a moral as well as a property issue, if thru no fault of your own you stand to lose your home. We too have a good Lawyer in Limassol she got us off a rocky path once so we owe her big time.

There are many stories around though similar to yours, and so far has anyone actually lost their home? Mind you its hardly healthy what it does to you while you wait to find out. No chance of getting your legal fees returned either? maybe thats the next step though.

Last month a man came to his holiday apt in Larnaca that he had owned for seven years, no Deeds yet, a letter from a bank he never dealt with in Cyprus was asking him to go in and see them urgently, on arrival he was told, we now own the land your block is on, due to developer going under, everyone in the apt block had been asked to cough up money to BUY the land back off the bank. The amount being more than he had originally paid for the apt seven years previous. He told them to take him to court as he would not pay a penny.

I wish you well, let us know how it goes.

[Gasman]

I know someone in a Kaneka apartment in Limassol who wants to sell but still doesn't have their TDs FIFTEEN YEARS after paying in full for their apartment.

It is not just the odd 'rogue' developer who is causing problems. I am embroiled with SS Georgious who are quite huge and have thousands of properties on the Eastern side of the island.

[Milo]

...and don't get me started on 'developers' 'Cancellation Fees' and the totally fraudulent Immovable Property Tax they levy LOL!

Both scams,

http://www.news.cyprus-property-buyers. ... l/id=00564

With the IPT,s ask for reciepts paid to the inland revenue and refuse to pay until you see them, when you get them check with the IR first. You will usually find they are grossly different.

[Gasman]

With the IPT,s ask for reciepts paid to the inland revenue and refuse to pay until you see them, when you get them check with the IR first. You will usually find they are grossly different.

Yes, but ... people want their DEEDS! And the developers refuse to hand them over until they part with the money.

[bsharpish]

A ( distant) relative of mine just got her title deeds after 22 years !!!

Another clever trick takes place on large multi phase developments-

For example - A Large development by a developer ( lets call them L) with 3 phases -
Phase 1 - 100+ properties- most over 9 years old
Phase 2 - 50 properties - approx 7 years old
Phase 3 - 30 properties - approx 5 years old

Title deeds now being received for phase 3 ( approx 15% of area and plots)... with much show and aplomb - " see you don't need to worry "
Phase 2 - 6-12 months until release - so 3-4 years really
Phase 1 - 3-4 years yet - so sometime around the 12th of never

wonder which phase still has a mortgage ???

[Milo]

iii) many Cypriots buy older properties, or build their own on family land or buy a plot and build themselves - all of which means they are not faced with the TD problems.


Lana

Of the 130,000 properties without Deeds only approx a third are foriegn owned the rest are Cypriot owned, same problems for them. TD,s were never important before and Developers kept them its not just an understaffed and slow LR problem, it enabled them to keep on borrowing for future developments. Building your own on land were you recieve TD,s on payment is the way to go imo. Which is what we did eventually.

[Gasman]

wonder which phase still has a mortgage ???

Erm.... lemme see now ... no - I give up! lol!

Yes exactly the situation with the huge developer in Larnaca. And they and their staff look injured and hurt when you point out to them that it is wrong for them to take out mortgages on properties they have sold and been paid for - you see 'that's how it's done in Cyprus'. That's 'the Cypriot way of doing things'.

And the Banks and the Lawyers enable them to continue doing it.

[Milo]

With the IPT,s ask for reciepts paid to the inland revenue and refuse to pay until you see them, when you get them check with the IR first. You will usually find they are grossly different.

Yes, but ... people want their DEEDS! And the developers refuse to hand them over until they part with the money.

Yes but no-one wants the inland revenue up their backside do they, when you get these extotionate IPT,s a class action demanding IR reciepts before you pay and a letter from a decent Lawyer saying IR checks will be made on what he has paid to them usually helps. Paying is carrying on the scam, calling the bluff might work.