How much do we have to pay off a developers debt?

Do you have a problem getting your Title Deeds?
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petrocelli
Posts: 4
Joined: 02 Oct 2013 16:26

How much do we have to pay off a developers debt?

Post by petrocelli » 02 Oct 2013 21:05

Hi Nigel

I have recently been asked by our residents association to vote on whether or not to join a court action to establish how much we should pay off a loan taken out by the (now defunct) developer of our properties.
In other words let the court decide how much we have to pay off this debt in order to get our Title Deeds.
However what is not clear is whether or not the court applies some kind of formula to decide on what portion of the debt they deem 'fair'. We've been told each owner will have to pay an amount which is in direct proportion to the size of their respective property, but it is unclear whether this applies to the whole debt or just a portion of it.
Has anyone any experience of such court action and as a result any answers as to what formula the court would apply/does apply?



Nigel Howarth
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Re: How much do we have to pay off a developers debt?

Post by Nigel Howarth » 02 Oct 2013 22:56

Hi petrocelli and welcome to the forum.

I haven't heard from anyone who has taken this course of action.

Has the residents association approached the bank to see what they are willing to accept? A settlement with the bank directly may be less expensive than a court action - and I'm sure that any action would be vigorously defended by the bank - and if the bank were to lose the case it could appeal to the Supreme Court.

I'm sure the bank will not want to throw you out of your homes and repossess them. The negative publicity such an action would generate would be extremely bad for the bank's business - and the island's property market. Also, the banks need money not properties - which they'll have to maintain and repair to keep them in a marketable condition at their cost.

But if it does go to court, I hope the judge will understand the banks stupidity/recklessness in what it has done and decides in your favour.

Regards,


Nigel Howarth
Independent information & advice for Cyprus property buyers
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petrocelli
Posts: 4
Joined: 02 Oct 2013 16:26

Re: How much do we have to pay off a developers debt?

Post by petrocelli » 03 Oct 2013 00:10

Hi Nigel

Yes we have already approached the bank and they are asking for 60,000 euros from each owner which is way in excess of what anyone can possibly afford.

Hence the recommendation from our lawyer that we go to court and let the court decide on an amount which is 'fair'.

The bank has already begun the process of obtaining a court order to liquidate the development company.

In addition as I'm sure you know until the debt is cleared we cannot obtain our Title Deeds.



Nigel Howarth
Site Admin
Posts: 2310
Joined: 24 Oct 2007 14:38
Location: Erimi, Limassol, Cyprus
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Re: How much do we have to pay off a developers debt?

Post by Nigel Howarth » 03 Oct 2013 11:52

Hi petrocelli

The bank is asking each owner to pay €60,000 as a result of its own incompetence !!!

The banks are liquidating a number of development companies in Larnaca and Paphos and those who have bought property on the developments face an identical problem to yourself and your neighbours.

Personally I cannot see why anyone should have to pay for the incompetence of someone else.

I hope you court case goes well and please keep me posted on progress.

Regards,


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

petrocelli
Posts: 4
Joined: 02 Oct 2013 16:26

Re: How much do we have to pay off a developers debt?

Post by petrocelli » 03 Oct 2013 17:58

Hi Nigel

Many thanks for this. I hope so as well.

Fortunately the person handling this for us is very good and we have an excellent lawyer.

I will keep you posted.



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