Resale with title deeds

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Kate
Posts: 7
Joined: 04 Nov 2007 20:35
Location: Pafos

Resale with title deeds

Post by Kate » 17 Sep 2008 20:43

Hi Nigel,
Apologies if this topic is covered elsewhere.

Some friends are selling a villa, for which they luckily managed to obtain title deeds just after putting on the market and happily paid €7000 believing this to be a good selling point.

They currently have some interest from a Cypriot but he wishes to reduce the price considerably, first because he wants a bargain, understandably, but then when a price was agreed, he asked for a further reduction to pay for title deeds. My friend pointed out that these were included and paid for. His answer - "irrelevant, I still have to pay again"

Is this true? I thought that there was a fee to transfer, but according to the prospective buyer, he has to pay again in full. Surely if this was the case, no-one would pay for title deeds, what would be the selling point? Unfortunately, my friend's very reputable lawyer agreed with the Cypriot that this is indeed the case.

HELP! Is this really true?

Many thanks

Kate



Nigel Howarth
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Re: Resale with title deeds

Post by Nigel Howarth » 18 Sep 2008 16:56

Hello Kate,

People buying property in Cyprus have to pay Property Transfer Fees - it's a similar situation in the UK, where property buyers have to pay Stamp Duty. But unlike the UK, there is no threshold below which the fees are not payable. (But I have heard rumours that the Govt. is thinking about changing the Property Tax System as a way of compensating buyers for the introduction of VAT).

If I was looking to buy property, I would certainly favour one with Title Deeds than one without and I'd be prepared to pay that bit extra as an insurance!

I don't know if you've seen Andrew Winter's TV program about the Title Deed problem. If not it's on the opening page of my Cyprus Property News Magazine

Some people always want to buy a camel for the price of a mule - and from what you say, that's exactly what this Cypriot buyer is trying to do.

Tell your friends to hang on until they get a decent offer.

Regards,


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

Molly
Posts: 28
Joined: 05 Aug 2009 09:02

Re: Resale with title deeds

Post by Molly » 26 Oct 2009 14:21

Hi Nigel

Sorry for appearing ignorant on this matter, but if you are buying a house already with Title Deeds, would the Property Transfer Fees, be the same price then as first paid out for the Title Deeds?

Regards

Molly



Nigel Howarth
Site Admin
Posts: 2323
Joined: 24 Oct 2007 14:38
Location: Erimi, Limassol, Cyprus
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Re: Resale with title deeds

Post by Nigel Howarth » 26 Oct 2009 15:52

Hi Molly,

The Property Transfer Fees are based on the assessed value of the property at the time of its purchase (which may or may not be the amount written into the contract of sale).

Eg.

First buyer buys new and pays €150,000 - their Property Transfer Fees are calculated on €150,000.
Someone buys the house from him and pays €180,000 - their Property Transfer Fees are calculated on €180,000.

Cheers,


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

Molly
Posts: 28
Joined: 05 Aug 2009 09:02

Re: Resale with title deeds

Post by Molly » 26 Oct 2009 21:02

Thats what I thought - thank you Nigel.

Regards

Molly



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