Liquidators

[Terrier]

Hello
Just need a little help if possible. We have received a letter from cypriot liquidators regarding a property we have asking us to contact them to prove any claim we have on it. The liquidators have been appointed by court order to the developer. They say that the property is registered to the developer but that there is a sales contract registered with the land registry in our favour.
Should i contact them and what are they likely to want.
Many thanks

[Nigel Howarth]

Hi Terrier and welcome to the forum

It sounds as if your developer has gone bust and the bank has applied to the Court to appoint a liquidator to recover and sell what assets he can to repay the developer's debts.

Should I contact them and what are they likely to want.

Yes - I expect they will ask for invoices and receipts confirming the amounts you have paid to the developer. BUT BE CAREFUL when signing any form the liquidator may send you - they may ask if they can act on your behalf to secure title. (Their usual charge is in the region of 11% of the purchase price for offering this service).

Regards,

[Terrier]

Thank you for your prompt reply.
Can they take possession of the property, we have no title deeds only the sales contract registered.
Also, is this likely to effect our UK property.

I'm sure we're not the only ones caught in this awful mess.

[Nigel Howarth]

This will not affect your UK property.

As for the one in Cyprus, it depends on whether the developer took out mortgages on the land (or if there are other charges) before your contract of sale was deposited at the Land Registry.

The first thing you should do is get the Land Registry to do a Title Search to establish if there are any issues that will prevent you getting title – such as mortgages and other claims registered before your contract of sale was deposited at the Land Registry.

You can get this search done yourself (no lawyer needed). I published a guide a few years ago including the necessary forms at http://www.news.cyprus-property-buyers. ... /id=004888 – the search will cost around €20 and should be ready for you to collect in a few days.

The search results are in Greek – perhaps you know someone who could explain it to you – otherwise there are usually a few friendly souls outside the Land Registry who will oblige (for a price).

Assuming there are no prior claims, you’ll have to deal with the Inland Revenue and possibly the community to settle and Immovable Property Tax, Capital Gains Tax and any local taxes relating to your property that have yet to be paid.

If there are any prior claims, these too will need to be settled. These will need to be negotiated with the bank.

There may be other debts that were lodged against the title after you took delivery of the property. These will be ‘memos’ (any mortgages after your contract will not affect you). To clear these memos you’ll need to secure a court order instructing the Land Registry to remove them – this shouldn’t be a problem.

What's the name of the developer? and the firm of liquidators? I may have more information.

Regards,