Repos through REMU

Pre-owned properties
Post Reply
HappyCamper
Posts: 21
Joined: 04 Jan 2018 19:48

Repos through REMU

Post by HappyCamper » 22 Jun 2018 04:12

BoC appear to be the biggest estate agent in Cyprus
have just completed a purchase from REMU and looking forward to paphos
A little stressful and the word "customer" does not appear to have an equivalent in the greek language
No "standard" procedures - they make them up as they go along and depends who you are dealing with
Endless demands for (the same) information - but understandable given the pressure they are under about money laundering and compliance etc.
And they don't like being asked to answer questions that need a definitive response - that really upsets them
But REMU are a worthwhile option if you are wanting to buy



HappyCamper
Posts: 21
Joined: 04 Jan 2018 19:48

our experience of a repo

Post by HappyCamper » 23 Jul 2018 02:08

In our case REMU put the property with an estate agent we knew - it had been up for sale for at least a year through REMU themselves with no success so they went out to 2 agents for responses to a tender. Property is sold as seen - so survey etc.
REMU had the title deeds in their name and the law on selling repos meant that there could be no encumberances otherwise they could not sell it (obv we checked anyway!). We used a solicitor out of choice (but REMU would have dealt with us as individual customers though). We submitted a response to their tender through the estate agent, it was accepted second time (the first bid was rejected), and we agreed and signed a Sales and Purchase agreement which was then deposited at the Land Registry. When the tender was accepted both parties had to sign and lodge the SPA within 30 days and the buyer provide a 25% deposit - it was only then that the sale became binding on both sides. Before lodging the SPA REMU could have accepted an alternative offer to ours. The SPA did contain penalty clauses if we had pulled out after lodging the SPA - essentially you lose the deposit if you do. The final transfer had to take place within 30 days of the SPA being lodged (we did that in 20 days - all that was really needed was for BoC to get tax clearance and us to transfer funds) and then you pay the rest of the price obviously.
Using the solicitor allowed us a time period to transfer monies through FX and try and get a decent rate of exchange - apart from the security of being represented and protected (they are a good firm).
REMU have a standard SPA that they use. As ever with all Cypriot officials, they are not always customer oriented and there were the usual array of obstacles put in the way (particularly the lack of standard financial compliance rules across different parts of BoC). They are all under pressure on money laundering checks. But its their own fault for selling EU passports. REMU and the BoC banking arm - who had my solicitor's client account from which the the transfer was made - had different compliance rules that between them required everything from me apart from a DNA sample.
However, it was no more stressful than buying a property at home really. The only difference from home was that I was advised to take out Buildings Insurance at SPA, rather than at transfer, to avoid risk etc
On discounts - well it's hard to tell isn't it. Our purchase was in a block in Exo Vrisi - which is where we wanted to be. The REMU asking price was 90% of the 2013 Land Registry Valuation, and we got it for a further 10% off. The current asking resale prices (which are ambitious) of similar sized apartments in the same block are around 40% more than we paid (but they are furnished). I think we got a good deal, but not a ridiculously low one.
Worth a look I would have said - and they are coming under increasing pressure to get these properties off their books



Nigel Howarth
Site Admin
Posts: 2295
Joined: 24 Oct 2007 14:38
Location: Erimi, Limassol, Cyprus
Contact:

Re: Repos through REMU

Post by Nigel Howarth » 23 Jul 2018 12:13

Hi HappyCamper

Pleased to hear you've bought a property without problems. I know there are hoops to jump through re money laundering (we had some checks done when we brought money to Cyprus in 2002 to pay for our house.)

I expect you'll have to pay management fees to the Management Committee of the property - and you'll be out looking for furniture.

Regards,


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

Pantheman
Posts: 505
Joined: 26 Jan 2008 14:44
Location: Famagusta District
Contact:

Re: Repos through REMU

Post by Pantheman » 23 Jul 2018 16:34

The REMU usually sell at 80% of the market value, not the 2013 value.

So if you got it at 80% that's the norm. If you are happy with what you got for what you paid then the values are a little immaterial unless you were looking to flip it.

In Cyprus, repo's are not as they are in the UK, here the banks want their money, in the UK the bank is more willing to take a loss to get shot of it. People here are of the notion that getting it from the bank must be cheap, not true.


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

Post Reply