Cyprus Property Forum for Buyers, Sellers & Investors

Hi, we have been told by our builder that the title deeds are ready for collection at the Land Registry for our house which is on a complex of 10 houses. We know this is correct because a neighbour has collected theirs already. Our builder though is saying we HAVE to collect them by the end of the year but we were planning to collect them in January. I was wondering if the reason for this is because he would have to pay the new property tax this year if they were not transferred before 2014 ? If this is the case and I got the deeds in January could he then charge me the tax he has paid ? Who is liable ?
Thanks

Hi Stevey40

Apologies for the delay - I've only just spotted your question.

If you read through your contract you’ll probably find a clause similar to the following:

• “All taxes, levies, duties or charges raised on or in connection with the property hereby sold after the purchaser has been put in possession of the property will be the responsibility of the purchaser.”

If your contract includes this (or a similar clause) you are obliged to pay the developer the amount of IPT he has paid on your behalf from the date you took delivery of the property - and I expect the developer will bill you for this year's Immovable Property Tax.

You should pay the Property Transfer Fees as soon as practicable (remember that until you pay the Property Transfer Fees, the property is not yours).

If you delay until next year, the developer will expect you to reimburse him the tax he will have to pay in 2014 (as the tax is payable by those who own property on the 1st January).

As you might imagine, the developer will not take kindly to having to pay tax because you delayed the transfer - and as it is in both your interests, I suggest you pay the Property Transfer Fees and secure ownership of the property without delay.

(If you cannot be in Cyprus to carry out the transfer, you can appoint your lawyer to act on your behalf).

Regards,

Ok thank you for the reply !