Cyprus-Forum.com

[nhowarth]

Hi Simon,

It seems there's a remote possibility - but don't hold your breath.

Also be aware that you may come into contact with the odd 'crook' who will try and relieve you of your money. It's a sad fact of life, but foreign nationals who prey on the fears of their fellow countrymen can still be found in Cyprus. There are also a number of foreigners operating as property middlemen who receive a commission or a 'finders fee' from developers when they introduce a client.

The Cyprus Government has introduced legislation to remove these cowboys, but unfortunately it will take some time to clear them out. And from what I understand these laws are currently under review in order to plug a number of loopholes.

In most cases, your better off dealing with a long-established company with its roots in the local community, and therefore a good reputation to protect, rather than your fellow countrymen who are out to make a quick buck. Reputable agents will be members of FIABCI (the International Real Estate Federation) and/or CREAA (the Cyprus Real Estate Agents Association) and will have their registration details displayed on their web sites and business material.

Incidentally, in 2001 the Cyprus Govt deported a Brit by the name of Graham Cockroft who was alleged to be dealing in GC owned property in the occupied areas (and who just happened to have his business in Pissouri).

Take care,

[dolmadis]

There are also a number of foreigners operating as property middlemen who receive a commission or a 'finders fee' from developers when they introduce a client. The Cyprus Government has introduced legislation to remove these cowboys, but unfortunately it will take some time to clear them out. And from what I understand these laws are currently under review in order to plug a number of loopholes.

I was interested to read the above and have some questions.

How will legislation in Cyprus deal with the UK Registered Companies which are buying whole developments in Cyprus on a deep discount and marketing these from the UK? Having looked at the UK Estate Agents Act they are not covered because the real estate is outside the UK and they are selling their own property direct.

Again the property finders sector in the UK is very well developed and if the real estate is not in the UK it would appear that the UK Estate Agents Act does not cover this activity. Do they not also tie up directly for sales with Estate Agents Licenced and Registered in Cyprus? Is that illegal?

Developers in Cyprus seem to be able to sell direct without the need to be registered as Estate Agents in Cyprus. Is that going to change creating a closed market for sales?

How will the new SIPP and SSAS Property Funds sales be managed in Cyprus? In the UK the seller must be FSA Registered. But what in Cyprus? Is there regulation for this?

"The Cypriot Opportunities Fund No.1 Limited Partnership is the inaugural Cyprus Residential & Commercial Property Unit Trust
Fund. The operator and management is FSA authorised and is an English Ltd Partnership with an exempt unauthorised unit-trust
as a feeder fund to permit participation by UK SIPP and SSAS. It has the huge advantage of enhancing the taxation benefits within
the SIPP, SSAS and other pension & financial vehicles. As the first fund of its kind within the Cyprus market place it will offer a
spectrum of property types, including commercial, government projects and university accommodation with rental underpinning
and long term contracts in place. There are a number of other potential projects in the wings should the fund be oversubscribed
above the initial £10 million fundraising objective which is expected."

[Svetlana]

Developers are free to sell their own off plan properties and resales, without requiring to be members of CREAA. Foreigners, opearting abroad or here in Cyprsus are allowed to sell their own (off plan or resale properties. It becomes illegal when an unregistered person or company recieves a commission from another company for the sale. That is anyone claiming to 'represent' a developer - but who is not directly employed by tham.

Lana

[nhowarth]

Hi Cyprusgrump (or would you prefer your real name - Mark Lipscombe)

> I feel sorry for people like Simon

I too feel sorry for Simon and also feel somewhat ashamed of being British with cowboys, such as yourself, offering property for sale on the internet and then deliberately lying about it.

The fact that you do this clearly demonstrates your high degree of professional integrity and honesty. Anyone who believes anything you say must need their head examining.

As for your kind offer of sending you a 'personal message' if I choose to contact you, it will be via your email address at: [email protected]

The sooner this beautiful island rids itself of scum the better.

END OF MESSAGE

[simonwjones]

Hi Cyprusgrump (or would you prefer your real name - Mark Lipscombe)

> I feel sorry for people like Simon

I too feel sorry for Simon and also feel somewhat ashamed of being British with cowboys, such as yourself, offering property for sale on the internet and then deliberately lying about it.

Here here I have always thought this Nigel. I agree 100%.

[nhowarth]

Hi Svetlana,

> It becomes illegal when an unregistered person or company recieves a commission from another company for the sale.

Unfortunately, these payments are often in 'brown envelopes' under the table or in the guise of 'consultancy fees'.

I believe there's at least one member here will be able to give you a much fuller explanation of how the laws can be easily evaded.

Regards,

[dolmadis]

Hi Lana

Thank you for your informative reply to my posting.

You did not comment on REITS so I will expand my post a little more with my own view of the likely lack of regulation in Cyprus itself.

With regard to the selling in Cyprus of the new investments in REIT funds (Real Estate Investment Trust - REIT, established in the UK by Gordon Brown to replace SIPPS) with a portfolio of Cyprus real estate, these can only be marketed in the UK by firms registered under the FSA in the UK.

In order to protect investors in Cyprus then I would expect Cyprus to also ensure that only firms registered with the FSA in the UK sell investments in REITS to people living in Cyprus. Will that happen? rhetorical question !!

With regard to your statement about the illegality of a company in Cyprus paying a commission to any company that is not registered or licenced by CREAA could I ask for some clarification.

Is it illegal for any company in Cyprus, registered or not under CREAA, to pay commission to any company which is not registered whether it is in Cyprus or not?


So it would be illegal in Cyprus for any Cypriot Company to pay commission as above? It seems to me that the fault/guilt seems to be on the Cyprus Developers and Licenced Estate Agents who recruit "property finders" or "introducers" to enhance their sales cheaply without telling people that it is illegal !!!

My view is that it is the responsibility of the Cyprus Government to stop Cyprus Developers paying such commissions. I would hope that the new legislation in Cyprus will make it quite clear to Cyprus Developers that this is illegal and penalties are appropriate however such commissions are paid.

Regards

[dolmadis]

Hi Lana

As you were unable to reply quickly, I contacted three major developers in Cyprus who do recruit "introducers" and interestingly one replied immediately saying that this was not illegal.

So this would appear to be a loop hole that the Cyprus Government must deal with in Cyprus itself under a revised law.

Regards

[Svetlana]

Hello dolmadis

You faith in the honesty and integrity of developers is very touching LOL!

Seriously, I would not take their word as arbitors on the laws of Cyprus; but I can only offer my amateur opinion.

Lana

[dolmadis]

Hi Lana

Appreciate your reply and your good humour about my faith !!

But I also understand direct from one operator in this field that he has a legal opinion from Chrysses Demetriades & Co.