Cyprus-Forum.com

[Kikapu]

The whole system of buying or building a place in cyprus is so different to elsewhere and and often the buyer is from a country where everything is straighforward and official like the UK, USA, Germany etc.

Lets not confused disorganised and ineffective with corrupt. They are nearly all unorganised, corrupt are few.

Sorry GG, but everything Lana has written about, is more than a disorganized system. Corruption fits those descriptions better I'm afraid.

[GG]

Sorry GG, but everything Lana has written about, is more than a disorganized system. Corruption fits those descriptions better I'm afraid.

I agree Kikapu, and I will happily say I was wrong. However I wasn't aware that so much of this corruption goes on. Maybe its because I am a cypriot and they don't try it on me. This topic is the first I have heard of such horror stories. All I can say is make sure you get everything in writing.

[simonwjones]

You lot really know how to put people off dont you. I'm sure all developers aren't bent as a six bob note and there are some honest ones' around. In this day and age developers rely on referals and can't afford to have a bad name.

Yes, there are cowboys and yes, there are crooks. But aren't there in every town, city and country in the World. You can not brand all developers as cowboys and crooks. Its the same as saying that all English football fans are thugs and louts...we aren't.

If you buy in Spain, Italy, Greece or wherever you will come accross problems etc you just have to keep your wits about you. I don't think Cyprus is any worst than the places above.......

If you buy from a developer who is not recognised then you may come accross some difficulties. (i.e Fopdac and FIABCI)

I might be talking waffle but this is my view.

[simonwjones]

........I have also always believed in what you pay is what you get.

Pay peanuts.......you get monkeys!!!!!!!!!!!!!!!!!!!!!!!!!!!!

I don't know what you get if you pay abit more

[nhowarth]

This thread has highlighted a number of frequently encountered issues with buying property in Cyprus. Let me try & phrase this as delicately as I can without ruffling too many feathers…

I seem to recall reading an article by Antonis Loizou in which he says something like property development is the “national sport of Cyprus”. To that I will add that all sports have players with varying degrees of skill, professionalism, honesty and integrity.

It is ‘unfortunate’ that many of the players involved in Cyprus’ national sport use their skill and professional position to fill their bank accounts as they consider this is worth more than their honesty and integrity. And of course, these players can be found working in both the private & public sectors of business.

There are many pitfalls awaiting the unwary including sub-standard construction, poor design and inappropriate professional advice and guidance offered by the many of the games ‘players’. I have heard from buyers who have suffered nervous breakdowns, marriage break-ups, and some who have ended up in financial ruin. I have also heard from people who have been threatened with physical violence if they tell their stories or attempt court action. This is a very poor reflection on Cyprus’ national sport and one that I’m sure has knock on effects on tourism and other areas of the economy.

As Lana has pointed out, the Law is of little help. You may have bought and paid for your property in full, it’s still perfectly legal for the person you bought it from to take out a mortgage using the property as collateral; it just doesn’t make sense does it?

And if you do take a case to court, it’ll take at least two or three years to be heard (all in Greek, no translators as provided in other EU member states). Let’s say you win the case and the court awards you CYP 100,000 + costs, there’s no body empowered to ensure you get the money. If the person/company that lost the case doesn’t pay up, there’s absolutely nothing you can do about it - you could go back to court, but the only thing you’ll succeed in getting is a bigger lawyer’s bill.

When it all goes pair shaped, the only thing you can do is put your head between your legs & kiss your bum goodbye.

Like it or not, this is how the system works. Until the Cyprus Government pulls its finger out and introduces some decent legislation to regulate and monitor the industry, it’s unlikely to change.

If there has ever been a case of saying ‘Buyer Beware’ it’s when buying property in Cyprus.

Regards,

[GG]

Until the Cyprus Government pulls its finger out and introduces some decent legislation to regulate and monitor the industry, it’s unlikely to change.

At the moment its easy money for developers and agents and so they really don't care about the few that avoid Cyprus for these reasons. When the industry dries up and other countries make fierce competition, only then will they look into making the whole experience more pleasant and safe for the buyer.

[chedda]

You may have bought and paid for your property in full, it’s still perfectly legal for the person you bought it from to take out a mortgage using the property as collateral; it just doesn’t make sense does it?


Does this apply only to new builds and developers ? Or until you recieve the new title deeds can a previous owner undertake a new mortgage ? I hope not perhaps if its the case the safe bet would not to buy a new house but an older previously owned one with deeds ?

[GG]

One other thing that may interest you to know is that there is no fixed commission. What i mean is that if you sell something via an Estate Agent elsewhere in Europe the agent will charge you the industry average between 1-3%.

In Cyprus the seller will tell the agent how much he wants 'net' and the agent can then put on as much as he likes. Some agents sell a house for £300,000 and give as little as £200,000 to the seller. Equivalent of 33% !!!!!!!! Strictly speaking its not conning and by no means illegal, just means you gotta know the value of what you are buying. I belive this is the main cause of silly price hikes, sellers know what agents do and so increase their price and then agents increase again, goes on and on.

[cyprusgrump]

........I have also always believed in what you pay is what you get.

Pay peanuts.......you get monkeys!!!!!!!!!!!!!!!!!!!!!!!!!!!!

I don't know what you get if you pay abit more

I’m afraid even the most expensive and established developers suffer from the same problems…

There is an Interlink development about 500m from my own home for instance – it is months behind schedule and people that have sold their homes in the UK have to move into what is essentially a building site.

Clients are always promised that they will complete the entire development at the same time but in reality I’ve never seen it happen here.

[nhowarth]

Hi Chedda,

> Does this apply only to new builds and developers ? Or until you recieve the new title deeds can a previous owner undertake a new mortgage ? I hope not perhaps if its the case the safe bet would not to buy a new house but an older previously owned one with deeds ?

No, it applies to everyone.

And it makes no difference whether the Title Deeds are available or not. The problem is made worse by the long delay in depositing your contract of sale and completing on your purchase - whether that's caused by the developer, the Land Registry - it's all the same.

You're in exactly the same position with a resale - you have to wait for the Council of Ministers approval before owning the property.

Regards,