Title deeds & IPT

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henryj10
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Joined: 01 Feb 2016 13:10

Title deeds & IPT

Post by henryj10 » 11 Apr 2016 20:37

We have just received notification from the developer that our title deeds are ready. He has also sent a statement of accounts which states
a total of 971.80 Euro for IPT from delivery in 2008 till 2013. As we are in the zero rated band is he correct to ask for this payment or is it possible to check this has been paid.



Nigel Howarth
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Re: Title deeds & IPT

Post by Nigel Howarth » 12 Apr 2016 12:10

Hi Henry

If your contract states something along the following lines:

“As from the day the Purchasers are in possession of the property, they undertake to be responsible for and to pay all the Government, municipal and local authorities’ taxes, levies, duties or charges (if any) raised on or in connection with the possession of the Property hereby sold.”

You need to pay your developer - but you must get a written receipt that shows: the company logo, the amount paid, the signature of the company representative and the company stamp.

You will then be able to submit a claim to recover any legitimate overpayments.

(If you had applied for your deeds under the 'trapped buyers' law you could have paid the various taxes to the relevant authority your taxes would have been calculated at the rate applicable to you, not at the higher rate applicable to a developer. E.g. Currently owners of property whose 1980 value exceeds €3 million, such as the larger property development companies, pay Immovable Property Tax at the rate of 1.9%, while the 1980 value of a property purchased by a typical buyer would be no more than €60,000 and would be taxed at a rate of 0.8%; a significant saving.)

Regards


Nigel Howarth
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henryj10
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Joined: 01 Feb 2016 13:10

Re: Title deeds & IPT

Post by henryj10 » 22 Apr 2016 21:27

Further to your reply I agree that I have to pay IPT etc. But on contacting the developer he said it would be some months before he could issue them, owing to this would it be counter productive to go down the road of trapped buyer. We did not take that route as we were nearly at the point of them being issued and thought it may complicate things. Also how long can the developer hold them to them.



Nigel Howarth
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Re: Title deeds & IPT

Post by Nigel Howarth » 23 Apr 2016 00:22

henryj10 wrote:But on contacting the developer he said it would be some months before he could issue them.
It is NOT up to the developer to issues Title Deeds - it's a job for the Land Registry.

How long can the developer hold them to them?

For ever unless you do something about it.

Regards,


Nigel Howarth
Independent information & advice for Cyprus property buyers
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henryj10
Posts: 4
Joined: 01 Feb 2016 13:10

Re: Title deeds & IPT

Post by henryj10 » 24 Feb 2017 16:03

Hi Nigel,
After trying to obtain my title deeds for some weeks the developer would not meet with me and told the receptionist to tell me to go down the trapped buyers route. This i did and followed all procedures IPT, none to pay council tax payment made. Now my developer wants me to pay IPT, council tax before he will tell the land registry he has no objection to me obtaining my deeds. This has to be done by 15th March which is the date he was given by the land registry to reply is this the correct procedure.
Regards
Henryj10



Nigel Howarth
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Re: Title deeds & IPT

Post by Nigel Howarth » 24 Feb 2017 16:31

Hi Henry

After you applied for your Title Deeds, am I correct in assuming that the Land Registry sent you a notice to pay your taxes to the Tax Department, Local Council and Sewerage Board?

If it did send you a notice, did you visit the Tax Department, etc., pay what you owed and were issued with receipts? Did you then take the receipts to the Land Registry to prove that you'd paid the taxes?

If so, you shouldn't pay the developer anything.

He may object to the transfer but, providing you've paid the taxes to the relevant authorities and provided the receipts to the Land Registry, his objection should be overruled.

Regards,


Nigel Howarth
Independent information & advice for Cyprus property buyers
Contact Nigel Howarth
Read the latest Cyprus property news

henryj10
Posts: 4
Joined: 01 Feb 2016 13:10

Re: Title deeds & IPT

Post by henryj10 » 24 Feb 2017 17:27

Hi Nigel,
Thanks for your prompt reply to my question, yes i did take the letters from the Land Registry to the IPT office and they said i owe nothing as i am zero rated. Also to Peyia council and paid the 156 euro they said i owed, then returned the said receipts to the Land Registry. My developer wants me to pay 987euro for IPT and 339 for council tax, as i am not going to pay this to him i expect what you said in your answer will happen.
Many thanks
Henryj10.



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