Selling apartment to a family freind

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thelma65
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Joined: 09 Dec 2010 01:30

Selling apartment to a family freind

#1 Post by thelma65 » 29 Jan 2017 23:03

Hi everyone
We are about to sell one of our 1 bedroom apartments to a family member at a reduced price
My query is what are I required to do legally to hand over this property ?
Do I need to get a lawyer ?
Do we need to sign documents etc ?

I have no idea wha the steps are - I know I should know but I really have no idea as it's a familiar key friend I'm sure we don't need to go down the full legal route ( expensive route etc)

Just a bit of background
The properties are fully paid up - no mortgage
We do not have title deeds and they are aware - -but they will get issued in he next 12-18 months
Properties are in joint names me and wife

Obviously I don't want to spend thousands on legal fees and want to know what the minimum I / we need to do t hand over and sell the property to them without any come backs

Any help would really be appreciated
Tia carl



Nigel Howarth
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Re: Selling apartment to a family freind

#2 Post by Nigel Howarth » 30 Jan 2017 09:57

Good morning Carl & welcome to the forum

As you do not own the property, you will need to prepare an assignment agreement whereby you transfer your rights and obligations in your contract of sale to your family friend. You will need a lawyer to do this.

Your friends will also have to conduct a search at the Land Registry to see whether there are any claims against the property that will prevent them securing ownership (such as a developer's pre-existing mortgage and other unpaid debts lodged against the property). It would also be wise for them to check with the planning authority to see whether the property has been issued with a completion certificate.

You say that the deeds will be issued in the next 12 - 18 months - how do you know this?

I suggest you contact a couple of the lawyers on the list prepared by the British High Commission in Nicosia and get competitive quotes.

Regards,


Nigel Howarth
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thelma65
Posts: 11
Joined: 09 Dec 2010 01:30

Re: Selling apartment to a family freind

#3 Post by thelma65 » 30 Jan 2017 14:57

thanks for the reply and info Nigel really appreciate it
the title deeds we have a scenario that looks like will be a win win
as our resort is not complete and hassapis will never complete it - we have a way that will work

I'm happy to discuss this with you but not on an open forum like this
do you have a personal email or/ number Nigel ? (as I think it maybe of interest to you to explain what we are doing - I'm on the committee !)



Nigel Howarth
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Re: Selling apartment to a family freind

#4 Post by Nigel Howarth » 30 Jan 2017 20:42

Hi Carl

To the right of this message you'll see the word 'contact'. If you click on the speech bubble next to it and then click on the envelope you'll be able to send me an email.

The fee for depositing an assignment agreement at the Land Registry is usually paid by the vendor. The fee is 0.5% on the sale price stated in the assignment agreement or 0.5% of the sale price stated in your purchase agreement when you bought the property, whichever of the two amounts is the higher. The minimum fee is €50 and the maximum fee is €3,000.

Regards,


Nigel Howarth
Independent information & advice for Cyprus property buyers
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thelma65
Posts: 11
Joined: 09 Dec 2010 01:30

Re: Selling apartment to a family freind

#5 Post by thelma65 » 30 Jan 2017 22:25

thanks nigel I have just sent you a PM

also on another note -

we are quering paying vat to our management company
Does anyone know a friendly Accountant who could say if we should or should not be paying VAT on two other services through our mangament company - Cleaning and Small works Maintenance? At the moment it looks like we pay 19% VAT for absolutely nothing (all 3 companies - cleaning, small works and gardening are not VAT registered).
should we therefore be paying vat ??

they claim their acct has advised we should pay vat - but if they are not vat registered these 3 separate companies cleans /small maintenance and gardening - in essesnce these are just owners with spare time on their hands

any advice?



Nigel Howarth
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Re: Selling apartment to a family freind

#6 Post by Nigel Howarth » 31 Jan 2017 09:55

Hi Carl

I see you sent me an email - I'll reply later this morning.

I can't help you with an accountant, but I think if the management company is registered for VAT they will have to charge you VAT even though the companies providing the services are not VAT registered.

Regards,


Nigel Howarth
Independent information & advice for Cyprus property buyers
Contact Nigel Howarth
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thelma65
Posts: 11
Joined: 09 Dec 2010 01:30

Re: Selling apartment to a family freind

#7 Post by thelma65 » 31 Jan 2017 14:10

that's great cheers nIgel - one other thing -

about the VAT billing as we are being charged double VAT on parts at the moment? (I think)

If a job requires a new part to complete it, Penyghent are just sending me an invoice where they are lumping together the cost of the part including VAT, their cut on top for labour or facilitation of another company to do the repair, and then add VAT on the whole bill. Therefore, we are being charged VAT twice on the part, when it was already paid on purchase from a shop. Can they add VAT again onto a part that has already had VAT paid on purchase? Should the parts be invoiced separately from the labour or facilitation?

Second question - if the Committee employ a non registered Gardening company direct (not going through a Management Company), surely we cannot then be billed for VAT on the bills direct from the Gardening company.

A quick answer would be much appreciated.



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Re: Selling apartment to a family freind

#8 Post by Nigel Howarth » 31 Jan 2017 18:43

If the Committee employs a gardening company directly and it's not registered for VAT it cannot charge you VAT.

And if the Management Company is registered for VAT and it's suppliers are also registered for VAT the you will pay VAT 'twice'. (When I built our home I bought around CYP 50,000 if fixtures and fittings directly from suppliers rather than through my contractor as this saved me having to pay VAT twice.)

Regards,


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

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