Cyprus Property Forum for Buyers, Sellers & Investors

This is my first time on the forum.

I own in a resort with 90 apartments, built in 2007. Owners have not yet been offered Title Deeds by the developer. As the developer has still not completed the road, pavement and street lighting around the resort, (despite acknowledging in writing it is his responsibility to do so), I am inclined to refuse the title deeds (!) until the resort is fully completed. If all the owners took the same stance, perhaps the developer would complete the road etc., rather than face paying the IPT on the whole resort for an extended period of time? However, would the IPT still end up being paid by the owners, as a previous posting implied? If the Title Deeds transfer then takes place after the new property valuations come into force, would owners end up paying so much more in transfer tax to obtain their Title Deeds as to make the above approach pointless?

Hello Simon and welcome to the forum,

Firstly, any revaluation of properties should not affect Property Transfer Fees as these are based on the market value of a property at its date of purchase not its current market value.

Secondly, the developer is obliged to deliver to you what is stated in your contract of sale - nothing more, nothing less. Once he has fulfilled those obligations, you cannot say this hasn't been done, you haven't finished this, etc..

I suggest you speak with your developer and see what progress he is making towards the issuance of Title Deeds along the following lines:

• When was the application for the Town Planning Permit submitted?
  Has a Building Permit been issued?
  Have any Covered Permits been requested/issued?
  Has a Certificate of Approval been applied for/issued?
  Has a Division Permit been applied for?
  Has a Certificate of Approval for the Division Permit been issued?
  Has an application been made to the District Lands' Office for the registration of the property & issue of Title Deeds

And by the way, you do not own a property until you have paid the Property Transfer Fees and its Title Deed has been registered in your name - so from what you say none of you on your estate own the properties.

Regarding Immovable Property Tax, the owner (currently the developer) is required to submit annual declarations to the Inland Revenue Department. If you check your contract of sale I expect you are liable for all taxes on the property from the date you took delivery.

So the developer will pay IPT for the whole of the estate and should then ask those who have purchased property to reimburse him - and provide them with the necessary documentation required for them to submit a claim to the Inland Revenue Department to reclaim any legitimate overpayments. (You can read more about this at Immovable Property Tax law).

What the 'good' developers do is submit IPT declarations to the Inland Revenue each year (as above) and provide their buyers with records of the amount paid as Immovable Property Tax (IPT) and a certificate showing the rate of IPT applicable to the property. It is important to note that the buyer may be able to claim back part or the entire amount paid once they have paid the Property Transfer Fees and become the property's owner.

The 'bad' developers do not submit IPT returns each year as they should and wait until the Title Deeds have been issued before paying the tax they owe. Because of the delay in making their payment, the Inland Revenue will impose a fine on the developer, who will then try pass this fine on to those who have bought property (often using the threat of withholding Title Deeds to elicit payment)!

Regardless of whether Title to the property is registered in your name, you will still pay Immovable Property Tax (indeed, you should have been paying it since you took delivery).

Regards,

SimonG wrote:This is my first time on the forum.

I own in a resort with 90 apartments, built in 2007. Owners have not yet been offered Title Deeds by the developer. As the developer has still not completed the road, pavement and street lighting around the resort, (despite acknowledging in writing it is his responsibility to do so), I am inclined to refuse the title deeds (!) until the resort is fully completed.

Dear SimonG,

It is not for you to accept or reject the title deeds, in fact if he hasn't done the things you claim, you will not be getting them anyway!

It is not a case to reject them, as the developer is not in a position to offer them anyway.

As for IPT, unfortunately, you will still need to pay this whether it is today or later as you cannot get your deeds until they are paid for.

All the other infor Nigel has given you I go along with, but on an unfinished resort, the most you can hope for are these:

When was the application for the Town Planning Permit submitted?
Has a Building Permit been issued?

And these should have been available when you purchased the property originally. These usually form part of the sale contract, first place to check.

Good luck.

Pan

Many thanks for your information and advice.