Signing a new contract with developer when buying a resale

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cliffyamo
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Signing a new contract with developer when buying a resale

#1 Post by cliffyamo » 10 Jun 2008 00:09

Hi Nigel,
Can I please ask, If I,m purchasing a resale property through a well known Estate Agent and the title deeds are not yet available and therefore I will be signing a new contract with the very large, well known Developer(after the old Contract has been cancelled by the current sellers selling the property and the Developer)
The Developer normally charges a cancellation fee to the current seller for the cancellation of the old Contract, but do they also charge a fee for the new Contract to be compiled, and charge myself the new purchaser?



Nigel Howarth
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Re: Signing a new contract with developer when buying a resale

#2 Post by Nigel Howarth » 10 Jun 2008 09:33

Hi Cliff,

No, the developer shouldn't be charging you a fee to draw up a contract.

HOWEVER, it would be extremely foolish of anyone to try and save money by signing a Contract of Sale prepared by a property developer (or any other vendor for that matter). This is the most common mistake people make when buying property here. Take a look at 'Top 10 pitfalls to avoid when buying property in Cyprus' and the messages in red at the top and bottom of every page on this forum.

To ensure your interests are best protected, it's absolutely essential that you take independent legal advice when buying and selling property in Cyprus.

Regards,


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

clive of payia
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Re: Signing a new contract with developer when buying a resale

#3 Post by clive of payia » 10 Jun 2008 10:54

Cliffyamo,

Out of curiosity could I ask that with all the information now available on this site and other regarding the many pitfalls of purchasing a property without title deeds why you are considering this?

Without title deeds you don't own the property
Your UK lawyer wouldn't recommend you buy without full title to the property - ask him!
The developer could sell the land from under you without your knowledge - and many thousands have
There are just so many things you cannot do if you don't own title to the property

Tactics such as 'I would just love to buy this property and give you your full asking price but sorry not without the title deeds' sometimes works and by magic the title deeds turn up.

As does, 'You are asking me to pay a freehold price but I will only get a leasehold property until eventually the title deeds turn up. I will only give you the price of the bricks and mortar until the deeds turn up' That sometimes works as well.

Or as a recent article on this site says. 'No Title Deeds No Sale'.

Hope this helps!..


Clive



MC
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Location: UK

Re: Signing a new contract with developer when buying a resale

#4 Post by MC » 10 Jun 2008 19:58

Cliffyamo
Please heed the sound advice you are being offered by those that know. I can speak the language & still got stung - NO DEED NO SALE is a good philosophy, it will save the inevitable tears & heartache later on.
I have solved my problem after three and a half years of hard graft & I would not wish the same on anyone else; in fact I would go as far as to say that without speaking the language & having the contacts on the Island it would have been an almost impossibility Do not expect the judicial process to be of any help either, unless you have a bottomless pit of unimaginable wealth and more years to live than you have already lived.
Beware, if only for your families sake if not yours.



cliffyamo
Posts: 23
Joined: 11 Nov 2007 01:01
Location: northwest england

Re: Signing a new contract with developer when buying a resale

#5 Post by cliffyamo » 12 Jun 2008 16:25

clive of payia wrote:Cliffyamo,

"Out of curiosity could I ask that with all the information now available on this site and other regarding the many pitfalls of purchasing a property without title deeds why you are considering this? "Clive
"

Clive,
I can understand what your saying concerning the title deeds but most properties for sale in Cyprus at the moment do not have Title Deeds!
No New Properties whatsoever have title deeds.(so you must enter into a contract with a Developer whether drawn up by the Developer(not recommended)or drawn up between my Independent Lawyer (I will be using) and the Developer.

Are you saying do not buy a New Or Off-plan Property in Cyprus from any Developer or Any agent whatsoever?

Their is a problem with the issuing of title deeds in Cyprus, the government cant cope with the workload and some Developers are using this to their advantage but I will be using a Registered Estate Agent one with Indemnity Insurance, an Independent Lawyer (of whom we called into her new offices in Limassol recently for a quote on her services) and one of the largest Developers on the island.

"Without title deeds you don't own the property"Clive[/quote]"

The lawyer will check whether there is any mortgages outstanding on the property and land and will ask the bank for a bank guarantee that if their is, to protect my claim registered with the land registry for specific performance and to supply a guarantee or waiver or written undertaking that the mortgage or loan will be removed by the bank when the title deeds become available.

"Your UK lawyer wouldn't recommend you buy without full title to the property - ask him!"Clive[/quote]"

The current procedures for purchasing property in Cyprus are outdated and need to be modernised but they are different from the Uk.

If a wait for the procedures to change I feel I will be out-priced out of the market and not be able to purchase a property.
Surely If I enter into a contract with a reputable Developer use an Independent Lawyer to look over the contract and purchase from a Registered Agent with indemnity insurance and receive a bank guarantee along with my Lawyer depositing a copy of the contract with the land registry for specific performance I will be protected?
90% of the properties in Peyia probably haven't had their final approval certificates so will not have title deeds.
100% of new developments or buying off-plan will have no title deeds, the current laws in Cyprus yes need changing ,but they are the current laws that the Cyprus government use to protect Property Buyers.
Its not ideal but thousands have purchased without Title Deeds.
I can understand if we all stop buying then they will be forced into changing the laws but while that happens over the next few years my chance of owning a property will have passed me by and I will have been out-priced out of the market with the rise in property prices in Cyprus and the fall in the UK.

Surely not all purchasers who have bought and will buy property entering into a contract in Cyprus and buying without Title deeds will be and have been ripped off?



clive of payia
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Re: Signing a new contract with developer when buying a resale

#6 Post by clive of payia » 12 Jun 2008 22:21

Cliffyamo,

We can only give our honest advice if you do not wish to heed it then thats your priveledge. I do hope you have reviewed all the web sites that cover the issue of title deeds and seen the very real problems so many people have had or indeed are going to have in the future.

You will at least have had the distinct advantage of knowing in advance that you may well encounter problems further down the road, many others were not so lucky.

Why do you really think that people would be forming action groups to get their 'rights'. Have you seen this site:

http://www.cyprus-property-action-group.net/

You could actually be the first person to register with them before buying a property without title deeds.

I wish you good luck.

Clive



cliffyamo
Posts: 23
Joined: 11 Nov 2007 01:01
Location: northwest england

Re: Signing a new contract with developer when buying a resale

#7 Post by cliffyamo » 12 Jun 2008 23:35

"I wish you good luck."
.
clive of payia wrote:Cliffyamo,

We can only give our honest advice if you do not wish to heed it then thats your priveledge. I do hope you have reviewed all the web sites that cover the issue of title deeds and seen the very real problems so many people have had or indeed are going to have in the future.

You will at least have had the distinct advantage of knowing in advance that you may well encounter problems further down the road, many others were not so lucky.

Why do you really think that people would be forming action groups to get their 'rights'. Have you seen this site:

http://www.cyprus-property-action-group.net/

You could actually be the first person to register with them before buying a property without title deeds.

I wish you good luck.

Clive
Clive,
Thankyou,
Im a scouser and by my very upbringing I,m cautious of anything and everything.
Whilst a lot of people are oblivious and not willing to listen, it is in our very nature to be cautious and reveue all avenues.
Yes their is evidence of real problems experienced by British Property Buyers in Cyprus and I do want your expert advice otherwise I would just ignore it and buy otherwise, but I want as much imput as possible as it is part of my research into purchasing a property and it is my life savings I will be using and is not open to chance and gamble.
but to repeat the question "do you recommend not purchasing any property whatsoever without the Title deeds being fully available and this includes buying offplan and new properties."



clive of payia
Posts: 15
Joined: 09 Jan 2008 23:34

Re: Signing a new contract with developer when buying a resale

#8 Post by clive of payia » 12 Jun 2008 23:58

Cliffyamo,

I brought out here six years ago a resale with title deeds. So very glad I did. I followed the sound advice given to me. I brought from another Brit and we did the whole deal in Pounds Stirling, no loss on currency exchange, and used our UK lawyers, no Cypriot lawyers involved to cheat us.

You can buy the land first and get the title deeds and then have your property built on it. Or. buy resale with title deeds. Anything else is just asking for trouble.

Think about it! would you buy a brand new car but let the garage owner keep his name on the log book? No you wouldnt so why do it with property.

This whole business of title deeds is a scam so that developers keep title to the land which they will use as collaterol to purchase more land. If you have grown up childred ask them if they think it is a good idea to hand over hundreds of thousands of Euros to a Greek Cypriot developer for a property you will not immediately own for many years - if ever.

Off-plan is now a totally flawed method of buying property. With so many thousands of unsold new properties around there are bargains to be had. You negotiating strength is that you insist on title deeds. if the property is complete why aren't the title deeds ready? Maybe the developer doesn't own the land in the first place but the crooked lawyers may not have told you that.

Hope this helps.



Nigel Howarth
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Re: Signing a new contract with developer when buying a resale

#9 Post by Nigel Howarth » 13 Jun 2008 09:29

Hi Cliff,

I must admit that when I read your initial message, I thought you were about to sign a contract that had been drawn up by the developer. As it will be prepared by your own lawyer, there's no way that the developer can charge you for compiling your new contract - although your lawyer obviously will.

Regarding the other comments, I do sympathise with a number of the views expressed.

But it's up to everyone to do their research, weigh up the risks and come to their own decision about what's right for them.

I wish you every success.

Regards,


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

cliffyamo
Posts: 23
Joined: 11 Nov 2007 01:01
Location: northwest england

Re: Signing a new contract with developer when buying a resale

#10 Post by cliffyamo » 17 Jun 2008 19:43

Thanks Nigel,
I was looking at purchasing a new development without title deeds and would have been signing a contract with a developer(not without legal advice first) but I,m having second thoughts on this, with all the good advice I,m getting.
I would have contacted my lawyer before signing anything but dont want to involve the lawyer and waste their time and my money untill a firm offer has been agreed on a property and I,m ready to proceed with paying a deposit.
I,m sure my lawyer would have advised me to not sign anything till she had seen the contract, but dont want to start paying for professional advice when I can recieve a lot of it for free from yourselves ;-) hence the question.



cliffyamo
Posts: 23
Joined: 11 Nov 2007 01:01
Location: northwest england

Re: Signing a new contract with developer when buying a resale

#11 Post by cliffyamo » 20 Sep 2009 22:55

Nigel
An update
In July 2009 I eventually purchased a Property with full title deeds.
I had been through the process of purchasing a Property with no Final Approval Certificate a lovely detached bungalow 1000 square meter plot with a large private pool but why? cause it didnt have all the documentation in place at that time!
The second a large detached 3 bedroom villa with swimming pool with all the furniture but hey the whole plot was Mortgaged to a bank even though all the owners had paid in full for thier Properties years earlier.
I waited and waited for the bank waiver to appear but it never did and after all the Solicitors costs I had to pay I eventually ended up with a 2 bedroom semi detached property with no pool which costs me more money.
But hey, I feel so much better and safer in the knowledge that I have title deeds and now a nice holiday home in Cyprus with sea and mountain views in a establshed area that I can call my own.
Thanks for all the advice on the site, which I may have questioned at times, but this was the learning process one has to take, to realize ones dream of safely owning a holiday home in the sun! :-))



Nigel Howarth
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Re: Signing a new contract with developer when buying a resale

#12 Post by Nigel Howarth » 21 Sep 2009 11:16

Hi Cliff,

I hope you enjoy your new holiday home secure in the knowledge that you've avoided the potential problems by buying something with Title Deeds.

I'll pop round for a coffee when you're next in town.

Take care,


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

cliffyamo
Posts: 23
Joined: 11 Nov 2007 01:01
Location: northwest england

Re: Signing a new contract with developer when buying a resale

#13 Post by cliffyamo » 21 Sep 2009 21:21

Thanks Nigel,
You will be made most welcome, will have to buy a fridge first for the milk and to keep the Keo on ice!
thanks again, regards Cliffyamo.



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