List of expected costs when selling please?

Questions about selling property
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itchyfeet
Posts: 3
Joined: 10 Oct 2012 16:49

List of expected costs when selling please?

Post by itchyfeet » 10 Oct 2012 17:14

Hello there,
I'm new to the forum, but really hope you can help. Sadly I'm quickly getting bogged down in the selling mire. I'm trying to fix a sale price and wondered if you can give me any idea of charges I should expect to see on a statement from the developer? I'm not sure how much detail you'd like me to post here, but I mean things like immovable property tax, property tax, admin and cancellation fees (I thought these had been abolished?) stamp duty, a sewerage charge and then a figure for interest on top of everything? I know there will be solicitor fees in addition.

Also do you have any information regards bank waivers? kind regards,



Nigel Howarth
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Re: List of expected costs when selling please?

Post by Nigel Howarth » 11 Oct 2012 08:33

Hi itchyfeet and welcome to the forum,

Firstly, a new type of contract was introduced last year known as a vesting/assignment contract (you can read more about this on pages 53-56 of the Department of Lands & Surveys Citizens' Charter.

This enables you to assign your rights (and obligations) under your contract to your buyer without the involvement of the developer. (This presupposes that you deposited your contract of sale at the Land Registry).

So you shouldn't expect to see any statement from the developer - so no cancellation fees, IPT, etc. All you need to do is pay any Capital Gains Tax and get a tax clearance certificate from the Inland Revenue. (I assume that you've been paying the 'local' taxes to your community/municipality - possibly €250/year).

As for the Stamp Duty on the contract, this will be paid by the purchaser. On the first €170,860 the rate is 0.15% on the remainder it is 0.2% (the maximum Stamp Duty is €17,060).

Estate agents charge around 5% of the sale price achieved (+VAT). These fees may be used to reduce your capital gains tax liability if you use a registered estate agent.

You shouldn't need a bank waiver. However, if the property was built on land that the developer had previously mortgaged or you have a mortgage, your purchaser can pay the outstanding amount of these mortgages to the bank (in return for a bank waiver) and pay you the difference. E.g. If you are selling for €200,000 and the outstanding amounts of the mortgage(s) is €50,000, the vendor pays the bank €50,000 and you €150,000.

One other point is that any claims against the property lodged at the Land Registry after your contract of sale was deposited will affect your purchaser as his contract will be lodged after these claims and so these claims will take precedence over his contract of sale.

I suggest that you get the Land Registry to carry out a search (see http://www.news.cyprus-property-buyers. ... /id=004888 ) to see if there are any mortgages or other claims that will affect your purchaser. The search costs around €10 and should be ready in a few days.

Regards,


Nigel Howarth
Independent information & advice for Cyprus property buyers
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