Transfer Fees - Increase in Valuation by Land Registry

[tom.want]

I wanted to tap the pool of experience available in the forum to learn how common it is for the Land Registry Office of deviate from the official purchase price of a contract for calculating the transfers fees.

I recently witnessed a transaction where the land registry imposed a valuation which is 2.6x the actual purchase price, which more than tripled the transfer fees due. The land registry put the valuation somewhere between the 2018 and the 2021 DLS estimate.

Is this typically what should be expected when you buy land below the DLS estimate value?

[Nigel Howarth]

This is quite common Tom

The DLS values a property based on its historical data of similar properties in the same area in an effort to prevent to prevent fraud. You can find more information at Property value in Cyprus is defined by the Land Registry.

I've heard of only case where DLS value was lower than the contract price - and I've heard of a few where the DLS has made a mistake.

The person faced with the higher fees can object - and get the property valued independently. But there's no guarantee that the DLS will accept an independent valuation.

There is no way you can tell if you're buying land for less than the the DLS' estimate value.

We bought our land in 1992 and the DLS accepted the price we paid. (We also had the land valued independently before we signed the contract to ensure we were not being ripped off.)

Regards,

[tom.want]

Hi Nigel,

Thank you very much for the confirmation. I guess in most cases there isn't much point in trying to fight the DLS over the increase in valuation / transfer fees. Best to just interpret it as a compliment about the good deal you just made if they double the price you paid.