Bank waivers

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Taylor
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Bank waivers

#1 Post by Taylor » 22 Jun 2017 20:59

I purchased an apartment from a developer in 2008 I am now trying to sell the property but it's taken over 25 months I'm being told I now need a bank waiver but the bank will not respond or appear to provide one as the developer has been liquidated and seems to have disappeared. Can I sell my property without this ?



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Re: Bank waivers

#2 Post by Nigel Howarth » 23 Jun 2017 07:55

Good morning Taylor and welcome to the forum.

I'm sorry to say that it's extremely unlikely that the bank will grant you a waiver as it will have no way of collecting the debt as your developer is being liquidated.

I think the your best approach will be to Apply for Your Title Deeds and once you have secured them - put your apartment on the market.

I can't see anyone buying your apartment in its present condition.

Regards,


Nigel Howarth
Independent information & advice for Cyprus property buyers
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Taylor
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Re: Bank waivers

#3 Post by Taylor » 25 Jun 2017 20:31

Thanks for your reply.

We have been told that we are unable to apply for the title deeds without a bank waiver, is this true ?



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Re: Bank waivers

#4 Post by Nigel Howarth » 25 Jun 2017 21:08

Taylor wrote:
25 Jun 2017 20:31
We have been told that we are unable to apply for the title deeds without a bank waiver, is this true ?
No! My article Applying for Title Deeds states what is needed to apply.

I'd like to know who's been spreading this rubbish about needing a bank waiver? PM me if you like.

Regards,


Nigel Howarth
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Taylor
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Re: Bank waivers

#5 Post by Taylor » 26 Jun 2017 16:49

Hi thanks for reply sorry I'm unsure how to PM you but I did apply for title deeds on 25/9/15 but have never heard anything since



Nigel Howarth
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Re: Bank waivers

#6 Post by Nigel Howarth » 26 Jun 2017 19:40

Hi Taylor

To PM me click on the bubble next to the word contact on the right of my message - then click on the leftmost bubble (or click on the 'Contact Nigel Howarth' in my signature.)

The Land Registries are still processing 14,043 applications - hopefully you'll here something soon.

Regards,


Nigel Howarth
Independent information & advice for Cyprus property buyers
Contact Nigel Howarth
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Taylor
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Re: Bank waivers

#7 Post by Taylor » 30 Aug 2017 22:01

Hi
Ok so our buyer decided to pull out due to the length of time that the lawyer was holding onto their money gaining interest for themselves. The buyer still wants our property but it's seems such a long wait for the title deeds and we can't get the waiver so is there any other way we can sell our property?



Pantheman
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Re: Bank waivers

#8 Post by Pantheman » 31 Aug 2017 09:53

Taylor wrote:
30 Aug 2017 22:01
Hi
Ok so our buyer decided to pull out due to the length of time that the lawyer was holding onto their money gaining interest for themselves. The buyer still wants our property but it's seems such a long wait for the title deeds and we can't get the waiver so is there any other way we can sell our property?
First and foremost, how do you know you need a waiver?? You said you were told, by whom? Did you carry out an N50 search to ascertain the legal status of the property??

Then, It seems that the bank may have adjusted its policy regarding bank waivers and where originally they refused to give waivers (if necessary if developer mortgages on land), they are now open to give waivers upon payment of a sum of money. I know of cases where this has happened and waivers granted, but that means the seller will be out of pocket by the amount the bank will accept for the waiver.

Failing that you can keep trying until you find someone that doesn't mind so much about these things depends on the buyer. I suspect you current buy may be Cypriot??

Either way, good luck.


For all your property needs, we offer Trust, Integrity, Honesty.
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Taylor
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Re: Bank waivers

#9 Post by Taylor » 03 Sep 2017 10:01

Hi there is a mortgage the developer has disappeared!!! No our buyer is from the UK but we are being told by our lawyer that they are unable to sell the apartment without the waiver !! We just need some genuine advice as we don't seem to be able to move forward.



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Re: Bank waivers

#10 Post by Nigel Howarth » 03 Sep 2017 13:54

Hi Taylor

It is possible to sell your property without a waiver from the bank if your buyer uses an 'assignment contract' rather than the regular contract of sale. This enables a the person to sell 'their' property without Title Deeds and transfer their rights and obligations under their contract of sale to the purchaser. This effectively puts the person buying the property in the same position as the first purchaser.

However, given the situation with your property, the lawyer acting on behalf of any potential problem will uncover the fact that the property is mortgaged and the developer is in liquidation. As a consequence, it's very unlikely that they will proceed with the purchase.

I think you have two options:
  • Wait for the Title Deeds to be issued by the Land Registry (you could make enquiries to see what progress they are making). However, if you paid for the property without the need for a loan, there may be complications due to the fact that the property is mortgaged and the company is being liquidated. The bank may prevent the transfer if it has no way of recovering the mortgage debt from the developer. (The Interior Ministry is looking to amend the 'trapped buyers law' to overcome this problem - we await developments).
  • Approach the bank to find out how much money it requires to clear the mortgage debt on the property you purchased. Then your buyer can pay the mortgage debt to the bank in exchange for the waiver and the balance of the asking price to yourself.
I'm disgusted that the lawyer you used when you purchased the property didn't advise you that the land on which the property was being built was mortgaged. Had you known the situation when you bought in 2008 I'm sure you would have run a mile!

A few years ago the Supreme Court ruled a lawyer in Paphos to be professionally negligent and ordered him to pay around €120,000 to his former clients. In that case the lawyer failed to advise his clients that the land on which their property was built was mortgaged and they ended up losing it when the developer went bankrupt. (You can read more about this case at Landmark ruling by the Supreme Court.)

Regards,


Nigel Howarth
Independent information & advice for Cyprus property buyers
Contact Nigel Howarth
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Taylor
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Re: Bank waivers

#11 Post by Taylor » 06 Sep 2017 20:07

Do you have a contact number ?

Our lawyer was contacting the bank but we don't seem to be getting any updates from them.

We can't seem to get a contact at the bank either.

The original lawyer is known by the Bar association and if i gave you their name you will be aware of this person. This case would make very interesting reading!

We just want to sell the property or even lease it our buyer in the U.K. Wants to proceed as we are selling it at a low price.



Pantheman
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Re: Bank waivers

#12 Post by Pantheman » 07 Sep 2017 09:00

Taylor wrote:
06 Sep 2017 20:07
Do you have a contact number ?

Our lawyer was contacting the bank but we don't seem to be getting any updates from them.

We can't seem to get a contact at the bank either.

The original lawyer is known by the Bar association and if i gave you their name you will be aware of this person. This case would make very interesting reading!

We just want to sell the property or even lease it our buyer in the U.K. Wants to proceed as we are selling it at a low price.
Your initial contact will be the bank manager at the bank from where the developer took the mortgage. If he cannot help he will give you a name and number from someone in Nicosia head office who is dealing with this mortgage.

Do you know which bank the developer used and owes to?? If you did the N50 search it would state the bank on that!


For all your property needs, we offer Trust, Integrity, Honesty.
FSB Properties Ltd
Registered and Licensed Real Estate Company Co. Reg. No. 795, Lic. No. 250/E
http://www.fsbproperties.com

Nigel Howarth
Site Admin
Posts: 2149
Joined: 24 Oct 2007 14:38
Location: Erimi, Limassol, Cyprus
Contact:

Re: Bank waivers

#13 Post by Nigel Howarth » 07 Sep 2017 19:54

Hi Taylor

To carry out a N50 search as Pan has suggested, see New title search procedures in Cyprus.

To find telephone numbers for lawyers, see ADVOCATE MEMBER.

If you wish to send me the name of your first lawyer click on the contact bubble in the right hand column.

Regards,


Nigel Howarth
Independent information & advice for Cyprus property buyers
Contact Nigel Howarth
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