Who Pays for Title Deeds

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dixonrichard
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Joined: 19 Oct 2016 00:27

Who Pays for Title Deeds

Post by dixonrichard »

Hi All

First post for me, just made offer on a property in Paphos. We understand that the title deeds are or soon will be available. However, at present the vendor has not applied for full title. My Cypriot lawyer informs me that we could either wait for title to be achieved by the vendor (6 months) or proceed without full title and apply in our names subject to a cost of C 2800 Euro for registering. My question is around the fact that I don't feel that it should be me that foots the title bill? Is there a precedent or view from any of the members on the site please?
Nigel Howarth
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Re: Who Pays for Title Deeds

Post by Nigel Howarth »

Hi dixonrichard and welcome to the forum

You don't 'pay' for Title Deeds. What you pay is a government tax 'Property Transfer Fees' - the local equivalent of the Stamp Duty Land Tax (SDLT) that is paid in the UK.

Property Transfer Fees are paid by the purchaser. If you purchase and then sell the property at a later date, your purchaser will pay Property Transfer Fees.

(Title Deeds cost €10.00)

The Department of Lands & Surveys has an on-line transfer fee calculator.

If you are buying the property from a developer, I strongly recommend that you withhold part of the purchase price until such time as the property's Title Deed becomes available. This will give him an 'incentive' to get the deeds issued.

(Also, if the vendor has yet to apply for the Title Deeds there isn't a snowball's chance in Hell that they'll be available in six months.)

Regards,
Nigel Howarth
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dixonrichard
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Joined: 19 Oct 2016 00:27

Re: Who Pays for Title Deeds

Post by dixonrichard »

Ah thank you Nigel, clearly got confused by the language my lawyer has used, makes absolute sense now! Buying on an established site (tomb of the kings) and lawyer has said to with hold a certain figure to push along the title process which is what you suggestion is stating.
Nigel Howarth
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Re: Who Pays for Title Deeds

Post by Nigel Howarth »

Hi dixonrichard

It's a lawyers job to confuse people :-)

You say it's an established site - are you buying the property from the developer or its previous purchaser?

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Nigel Howarth
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dixonrichard
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Re: Who Pays for Title Deeds

Post by dixonrichard »

Hi Nigel,

We are buying from a personal seller who has owned for approx 10 years. We have reasonable knowledge of the site as friend of ours own two properties on the development so are holding our hands! It's a Leptos site and we understand that all is confirmed we the development being free of mortgages etc and absolute title is been given or about to be to a number of the residents very soon.
Pantheman
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Re: Who Pays for Title Deeds

Post by Pantheman »

dixonrichard wrote:Hi Nigel,

We are buying from a personal seller who has owned for approx 10 years. We have reasonable knowledge of the site as friend of ours own two properties on the development so are holding our hands! It's a Leptos site and we understand that all is confirmed we the development being free of mortgages etc and absolute title is been given or about to be to a number of the residents very soon.
I;m sorry I don't subscribe to the 'about to be given or very soon' palaver .

If the deeds are not ready for transfer then you have no deeds. 'Very soon' in Cyprus could mean years. You lawyer should be asking if a final certificate has been issued, if the title deeds are already in the developers name or better still enquire are the Land registry to ascertain status of title.

Until you have this info, you are not making an informed decision.

Sure if you feel comfortable that your friends are their and all is well (it might be), then proceed, but the advice you are receiving is all wishy washy in my book.

Sorry to P**** on your parade.
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dixonrichard
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Joined: 19 Oct 2016 00:27

Re: Who Pays for Title Deeds

Post by dixonrichard »

Pantheman wrote:
dixonrichard wrote:Hi Nigel,

Thanks Pantherman, couldn't agree more and will/are proceeding with caution until we have certainty from the lawyer's enquiries, there are far too many stories of issues with deeds or more accurately without deeds !



We are buying from a personal seller who has owned for approx 10 years. We have reasonable knowledge of the site as friend of ours own two properties on the development so are holding our hands! It's a Leptos site and we understand that all is confirmed we the development being free of mortgages etc and absolute title is been given or about to be to a number of the residents very soon.
I;m sorry I don't subscribe to the 'about to be given or very soon' palaver .

If the deeds are not ready for transfer then you have no deeds. 'Very soon' in Cyprus could mean years. You lawyer should be asking if a final certificate has been issued, if the title deeds are already in the developers name or better still enquire are the Land registry to ascertain status of title.

Until you have this info, you are not making an informed decision.

Sure if you feel comfortable that your friends are their and all is well (it might be), then proceed, but the advice you are receiving is all wishy washy in my book.

Sorry to P**** on your parade.
Nigel Howarth
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Re: Who Pays for Title Deeds

Post by Nigel Howarth »

Hi dixonrichard

To follow up on Pan's post, your lawyer MUST check that there are no mortgages on the property that will prevent you owning it.

Your lawyer should also check whether a 'Certificate of Approval' has been issued to confirm that the property complies with all the various permits and permissions issued for its construction. If there are any planning irregularities you may get the deeds with a 'note' meaning that you can't sell the property until the irregularities have been corrected. (From what you say about Title I expect that a Certificate of Approval has been issued as this is needed before the Land Registry can issue the deeds.)

Assuming that everything is in order and the developer has applied to have Title Deeds issued it may still take some time to issue them. The Land Registries have received many thousands of applications from purchasers who previously were unable to get their deeds because the developer has not repaid a mortgage(s) on the land on which he was building and they are snowed under with applications.

A further note - the personal seller from whom your buying has not owned the property for 10 years. YOu only become the owner of a property when its Title Deed is registered in your name.

Please get you lawyer to check that everything is OK.

REgards,
Nigel Howarth
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