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
Posts: 2
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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Joined: 24 Oct 2007 14:38
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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
Contact Nigel Howarth
Read the latest Cyprus property news

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