title deeds in an apartment block

[dizzielizzie]

Hi Nigel,

I hope i am not asking you too many questions in one.

If you purchase your title deeds for the apartment that is within a development, and others within the development do not purchase theirs, can the developer still remortgage the land that the development is on?

We have been told our deeds are available until the end of March, other people within the development are saying they are not going to bother getting theirs as there is not much point unless you want to sell and if you do want to sell you can just tell prospective purchasers that the deeds are available for the property.

And finally how do you calculate the cost for transfer of the deeds if the property is in joint names.

Last but not least how would it affect us as we have another property and the title deeds become available on that with the cost of transfer fees, would they still be split because of joint names?

Will we need to use a solicitor?

Many thanks as always for your invaluable help.

Lizzie

[Nigel Howarth]

If you purchase your title deeds for the apartment that is within a development, and others within the development do not purchase theirs, can the developer still remortgage the land that the development is on?

No. He cannot remortgage the land. However, he will be able to reschedule/extend any loans on the land that existed before contracts were deposited at the Land Registry.

Other people within the development are saying they are not going to bother getting theirs as there is not much point unless you want to sell and if you do want to sell you can just tell prospective purchasers that the deeds are available for the property.

People who do not get their Title Deeds are idiots!

• (a) The property developer will have to pay tax on the properties and he will come after those people for the money.
  
  (b) They will need to pay the Property Transfer Fees at some time - even if they do manage to sell their property to someone else.
  
  (c) They will not be considered as the legal owner of the property and this will lead to all kinds of problems:
  
  • They will be unable to enjoy the full benefits of property ownership; including the right to sell or transfer it to anyone they wish without the agreement of its registered owner (the developer). And I cannot see the developer agreeing to them selling the property if he's been paying their property tax!
    
    They will be unable to raise money against their property through equity release loans and other schemes. Until the property’s Title Deed is registered in their name, this is not possible.
    
    The Cyprus financial institutions are extremely reluctant in granting mortgages on resale properties without Title Deeds, unless the developer acts as a guarantor (And I can't see him agreeing to this). As a consequence, those wishing to sell their property have to find a cash buyer.
    
    They will be unable to make any substantial changes to the property without the consent and the agreement of the Title Deed holder (the developer) and I can't see him agreeing to that either.
    
    They will be unable to set up a Management Committee to look after the building and collect money for maintenance, insurance, etc.
    
    Etc, etc, etc.

And finally how do you calculate the cost for transfer of the deeds if the property is in joint names.

The Land Registry has an on-line calculator at http://www.moi.gov.cy/moi/dls/dls.nsf/d ... calculator - just enter half the price you paid and then double the transfer fees.

Last but not least how would it affect us as we have another property and the title deeds become available on that with the cost of transfer fees, would they still be split because of joint names?

It will not affect you - and yes, the Transfer Fees would be split if you bought in joint names.

Will we need to use a solicitor?

If you do not speak Greek, you'll need the help of someone who does and knows what they are doing - a lawyer is probably best.

And don't forget to make Wills if you haven't done so already.

Regards,

[dizzielizzie]

Hi Nigel

Thank you so much for answering everything for me, i did find the calculator in fact, your site is absolutely invaluable.

We shall arrange now for our deeds as they are ready, the developer is charging us 238 euros immovable property tax, and have offered to do all the business for us at a cost of 200 euros (cheaper than a flight).

We didnt think we would be liable for the property tax, ours is only a one bed, however some in the block, and some of the houses would be liable i presume he has just split it over the lot! They are only available to the end of March so i want to move quickly, only just found out they were available.

Would you suggest using a solicitor rather than taking up the developers offer of doing it for us?

Once again thanks for your help, i have directed so many people to your site, many of whom are now living in Cyprus and seem to be more in the dark than those of us who have permanent access to internet, some estate agents are giving the wrong advice regarding purchasing title deeds and put very little importance on them.

Thanks again for your help.
Lizzie

[Nigel Howarth]

Hi Lizzie,

Providing your developer provides you with the necessary documents, you may be able to claim some of the Immovable Property Tax back from the Inland Revenue once you have your Title Deeds.

There's an article in my magazine at http://www.news.cyprus-property-buyers. ... s/id=00517 that explains things.

I also have a letter from the Interior Ministry stating what information the seller (your developer) should provide you with to submit a claim for the tax rebate. If you would like a copy, just let me know.

If he's prepared to do the work for €200, it is probably cheaper than getting a lawyer to do it.

Regards,