Title deeds & IPT

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henryj10
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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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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.



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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
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henryj10
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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



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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
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henryj10
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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.



henryj10
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Re: Title deeds & IPT

Post by henryj10 » 12 Apr 2017 13:53

Hi Nigel,
Today i have received a letter from the Land Registry that is written in Cypriot together with a statement of account from my Developer, requesting i pay 971.80 IPT from delivery in 2008 to 2013 that he says he has paid, together with council tax 2008 to 2017 that i have no dispute over the council tax but i object to the IPT bill as when i took over the IPT payments i was told my property is zero rated. The land registry has told me to sort out the problem with the developer to get him to remove his objection ie. pay the bill and get a letter from him lifting his objection. Is this advisable or not.
Grateful for any advice.



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Re: Title deeds & IPT

Post by Nigel Howarth » 12 Apr 2017 15:31

Hi Henry,

The 'trapped buyers' law was supposed to overcome these problems. But it appears that the Paphos Land Registry has its own rules.

I wrote an article last year about applying for Title Deeds at http://www.news.cyprus-property-buyers. ... d=00126681 , which I had checked by Irene Anastasiou and Charalambos Charalambous of the Department of Lands and Surveys Head Office before I published. On this subject it says:

"If, during its examination of their Title Deed application, the DLO finds that their tax obligations have not been paid, it will serve a notice to the applicant to pay their taxes to the competent authorities and produce the necessary evidence to the DLO. Once the applicant has paid their obligations, the competent authorities, will issue the necessary statements."

As I understand the situation the Land Registry sent you a notice to pay IPT, sewerage and local municipality. This you did and took the receipts back to them. That should have been the end of the story and the LR should have rejected your developer's objection.

I suggest that you ask the Land Registry (nicely) to double-check the situation with Irene Anastasiou and Charalambos Charalambous. If it transpires that you need to pay the developer, then you should pay him and get receipts, the letter withdrawing his objection - and help to complete the forms that will enable you to recover the IPT you have paid.

The problem with these taxes is that they are calculated on the total value of all the properties registered in the name of the taxpayer. Although you as an individual only 'own' a single property, your developer developer probably owns hundreds of properties and therefore has to pay IPT at a much higher rate - and he is charging you IPT on the Property in proportion to the whole project.

This is acceptable BUT you must get your developer to help you complete the paperwork to submit a claim to recover the IPT you have paid.

Regards,


Nigel Howarth
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Re: Title deeds & IPT

Post by Nigel Howarth » 12 Apr 2017 19:06

Henry - I've had a thought.

Please post the precise wording of the clause in your contract of sale regarding the payment of property taxes.

Thanks


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henryj10
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Re: Title deeds & IPT

Post by henryj10 » 13 Apr 2017 11:16

Hi Nigel,
Just seen the message you sent me yesterday, so i think the following is the paragraph you mean.
15. OUTSTANDING.
The purchasers bear no responsibility and they are not in any way liable in respect of any obligations, outstanding, charges, dues,land and property dues fees and taxes regarding the said property, created before the signing of the present agreement, or for any capital gain taxes created with the signing of the present agreement. The purchasers shall be responsible for the payment of any taxes and/or rates due to the Improvement Board of the village from the date of the delivery of the possession of the property to them and as well as for the payment of their immovable property tax according to the law 24/80-2000.



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Re: Title deeds & IPT

Post by Nigel Howarth » 13 Apr 2017 12:15

That's excellent Henry.

You will note that it says "The purchasers shall be responsible for the payment of any taxes and/or rates due to the Improvement Board of the village from the date of the delivery of the possession of the property to them and as well as for the payment of their immovable property tax according to the law 24/80-2000."

Fortunately it doesn't say to whom you have to pay these taxes - and as you have paid them to the relevant authorities and provided receipts to the Land Registry, IMHO you owe the developer nothing.

I suggest that you visit the Land Registry with your contract and point this out to them.

Regards,


Nigel Howarth
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henryj10
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Re: Title deeds & IPT

Post by henryj10 » 22 Apr 2017 15:28

Hi Nigel
I followed your advise and went to the land registry and requested they take another look at the objection this she did but said i should go to the IPT office.
The lady there said that i should sort the problem out with the developer and that if i paid him i could reclaim it back. This i already knew but to get things moving i decided to do this at least i would get the deeds and i can sort out the refund after that. I paid the developer all the money he requested and obtained receipts and a letter withdrawing the objection. On taking this to the LRO they said i should receive a letter around May 5 for the start of the 60 days. I would like to thank you for the time you took and the advice you gave with my problem.
Thankfully Henry



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Re: Title deeds & IPT

Post by Nigel Howarth » 22 Apr 2017 19:01

Hi Henry

You're welcome - but I'm disgusted that you had to pay the developer :-(

Your contract did not mention to whom you should pay the taxes and, IMHO, it would have been acceptable if you paid those taxes to the relevant authority directly. This would have saved you the hassle of recovering the IPT.

Regards,


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