Hi,
I am in the process of buying a property in Paphos and meant to be completing by middle of next week. The details of the property from the agent said: - This property has full title deeds and within walking distance of beach. Leftos were the developers. I have just received an email from the lawyers. It implies that the property does not yet have title deeds. It says the developer secured all the relevant permits and cerificates and submitted them to the land Registry to issue the deeds and has a reference number. It also says, THE DEEDS ARE NOT READY YET but is a matter of very little time to be ready. (their wording)
It then mentions the transfer fee of 3000 euros that will not be needed immediately. It goes on to say that after Leptos will collect them from the Land Registry it may take 2-3 months to prepare statements and be ready to transfer them to the buyers. I am however extremely worried regarding buying if it does not yet have full title deeds. Could they not be issued for some reason? I was led to believe by the lawyer that the property already had full title deeds but previous owners had not taken them up and it was simply a case of my payinjg for the transfer into my name. How safe is it to buy without title deeds? Would this be grounds to back out? Is Leftos a reliable company? Any help greatly appreciated. Thank you!
Title Deeds help wanted.
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Nigel Howarth
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Re: Title Deeds help wanted.
Good morning Helpme and welcome to the forum.
It sounds as if the agent and your lawyer have lied to you once - and for all you know could be lying to you again.
There are a number of reasons why title to the property cannot be made available for transfer. The main potential problem is a 'hidden mortgage' and your lawyer should have looked into this as part of the due diligence process. If the developer has mortgaged the land on which the property has been built you will be unable to secure Title until that mortgage has been repaid. There is also the possibility that there may be other charges lodged against the property that will make it impossible to obtain title until they have been paid.
It's a relatively simple check to make and you can find information and a guide at http://www.news.cyprus-property-buyers. ... /id=004888 - you need to instruct a lawyer to get this information for you. If the property is mortgaged or there are other issues with the title then I would advise you NOT TO BUY.
The British High Commission publishes a list of lawyers that you can find at https://www.gov.uk/government/uploads/s ... mplate.pdf
Leptos is one of the larger property development companies.
Assuming you used a registered estate agent - they will have insurance. So if anything goes wrong and the fault is with them, you'll be able to claim. Similarly lawyers on the list provided by the British High Commission carry professional indemnity insurance.
(Incidentally, you cannot 'complete' on the purchase until title to the property becomes available for transfer).
Regards,
It sounds as if the agent and your lawyer have lied to you once - and for all you know could be lying to you again.
There are a number of reasons why title to the property cannot be made available for transfer. The main potential problem is a 'hidden mortgage' and your lawyer should have looked into this as part of the due diligence process. If the developer has mortgaged the land on which the property has been built you will be unable to secure Title until that mortgage has been repaid. There is also the possibility that there may be other charges lodged against the property that will make it impossible to obtain title until they have been paid.
It's a relatively simple check to make and you can find information and a guide at http://www.news.cyprus-property-buyers. ... /id=004888 - you need to instruct a lawyer to get this information for you. If the property is mortgaged or there are other issues with the title then I would advise you NOT TO BUY.
The British High Commission publishes a list of lawyers that you can find at https://www.gov.uk/government/uploads/s ... mplate.pdf
Leptos is one of the larger property development companies.
Assuming you used a registered estate agent - they will have insurance. So if anything goes wrong and the fault is with them, you'll be able to claim. Similarly lawyers on the list provided by the British High Commission carry professional indemnity insurance.
(Incidentally, you cannot 'complete' on the purchase until title to the property becomes available for transfer).
Regards,
Nigel Howarth
Independent information & advice for Cyprus property buyers
Contact Nigel Howarth
Read the latest Cyprus property news
Independent information & advice for Cyprus property buyers
Contact Nigel Howarth
Read the latest Cyprus property news
Re: Title Deeds help wanted.
Hi Nigel,
Many thanks for the valuable information. As I am now back in England things are more difficult.
I really don't know what to do? As I have been given a date for final payment and the title deeds are not available yet can I legaly refuse, as without the title deeds completion isn't possible? What would happen if I didn't proceed?
I paid deposit with credit card, could I just stop this. What likely repercussions?
Everything happened so quick. I didn't realise that the moment I was taken to the lawyer that on leaving deposit, I would also be signing contracts right then. It was then given a date for completion of less than a month.
This paragraph is on my contract: - The balance amount of ***** will be paid on or before 21/12/2013. simunaeously with the provision of a tax clearance certificate for capital gains taxes (CGT) by the "Assignor, the delivery of possession of the property and the transfer of the clear title deed on the names of the "Assignees".
Does this imply that I will receive title deed when paying the balance? This is not the case, so would I be within my rights to not proceed? Would I be liable for any costs should I not prceed with the purchase even though I have signed a contract?
Any advise gratefully received.
Thank You.
Many thanks for the valuable information. As I am now back in England things are more difficult.
I really don't know what to do? As I have been given a date for final payment and the title deeds are not available yet can I legaly refuse, as without the title deeds completion isn't possible? What would happen if I didn't proceed?
I paid deposit with credit card, could I just stop this. What likely repercussions?
Everything happened so quick. I didn't realise that the moment I was taken to the lawyer that on leaving deposit, I would also be signing contracts right then. It was then given a date for completion of less than a month.
This paragraph is on my contract: - The balance amount of ***** will be paid on or before 21/12/2013. simunaeously with the provision of a tax clearance certificate for capital gains taxes (CGT) by the "Assignor, the delivery of possession of the property and the transfer of the clear title deed on the names of the "Assignees".
Does this imply that I will receive title deed when paying the balance? This is not the case, so would I be within my rights to not proceed? Would I be liable for any costs should I not prceed with the purchase even though I have signed a contract?
Any advise gratefully received.
Thank You.
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Nigel Howarth
- Site Admin
- Posts: 3063
- Joined: 24 Oct 2007 12:38
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Re: Title Deeds help wanted.
Hi Helpme,
If you failed to continue with the purchase, you may be in breach of contract and liable to be sued. However, I think it more likely that you will just lose your deposit - but it all depends whether the person you wants to take things further.
From what you say it sounds as if you signed an assignment agreement - this would have been between yourself and the person who bought previously? If this is the case then that person (the assignor) will have already provided a tax clearance certificate to the Land Registry as this is required before the Land Registry will accept an assignment contract.
The developer will also have to pay any Capital Gains Tax on any gain resulting from the original sale.
Your contract implies that the the tax clearance certificate will be provided and the property will be transferred to your name when you pay the balance of the purchase price. But from your lawyer's email, it seems as if this may not be possible.
I suggest you discuss this with your lawyer. My thoughts are that you should withhold a significant sum until such time as the Title Deed is available for transfer. The problem with this is that you will be penalising the vendors who will not get all their money until the Title Deeds become available - and they cannot be blamed for the delay.
The 'reference number' mentioned in your lawyer's email is an 'AX' number - a Land Registry file number for the work required to issue the deeds. This may take a year from the time that the application was made (mine took 11 months).
If you wish to contact me privately on this matter, you can get in touch via http://www.news.cyprus-property-buyers.com/contact/ - it would be useful if you could scan and send your contract to me (scrub out any financial information). I can see 9if there are any other possible issues.
Regards,
If you failed to continue with the purchase, you may be in breach of contract and liable to be sued. However, I think it more likely that you will just lose your deposit - but it all depends whether the person you wants to take things further.
From what you say it sounds as if you signed an assignment agreement - this would have been between yourself and the person who bought previously? If this is the case then that person (the assignor) will have already provided a tax clearance certificate to the Land Registry as this is required before the Land Registry will accept an assignment contract.
The developer will also have to pay any Capital Gains Tax on any gain resulting from the original sale.
Your contract implies that the the tax clearance certificate will be provided and the property will be transferred to your name when you pay the balance of the purchase price. But from your lawyer's email, it seems as if this may not be possible.
I suggest you discuss this with your lawyer. My thoughts are that you should withhold a significant sum until such time as the Title Deed is available for transfer. The problem with this is that you will be penalising the vendors who will not get all their money until the Title Deeds become available - and they cannot be blamed for the delay.
The 'reference number' mentioned in your lawyer's email is an 'AX' number - a Land Registry file number for the work required to issue the deeds. This may take a year from the time that the application was made (mine took 11 months).
If you wish to contact me privately on this matter, you can get in touch via http://www.news.cyprus-property-buyers.com/contact/ - it would be useful if you could scan and send your contract to me (scrub out any financial information). I can see 9if there are any other possible issues.
Regards,
Nigel Howarth
Independent information & advice for Cyprus property buyers
Contact Nigel Howarth
Read the latest Cyprus property news
Independent information & advice for Cyprus property buyers
Contact Nigel Howarth
Read the latest Cyprus property news
Re: Title Deeds help wanted.
Hello,
If they said it had title deeds, then ask them to produce them period. There are no if's or but's this is false representation.
Depending on how much deposit you paid, you might be prepared to lose it and not proceed. I am not saying it is not safe, what I am saying if they told you it was a 2lt engine then you would expect a 2lt engine not a 1.4 so to speak. Papers at the Land registry blah blah blah is just plain BS.
It is really up to you if you decide to proceed, if you do a contract of sale then you need to be sure you had a search done and that there are NO developer mortgages or memos etc etc.
Seems your lawyer is a plonker!
Good luck.
If they said it had title deeds, then ask them to produce them period. There are no if's or but's this is false representation.
Depending on how much deposit you paid, you might be prepared to lose it and not proceed. I am not saying it is not safe, what I am saying if they told you it was a 2lt engine then you would expect a 2lt engine not a 1.4 so to speak. Papers at the Land registry blah blah blah is just plain BS.
It is really up to you if you decide to proceed, if you do a contract of sale then you need to be sure you had a search done and that there are NO developer mortgages or memos etc etc.
Seems your lawyer is a plonker!
Good luck.
For all your property needs, we offer Trust, Integrity, Honesty.
FSB Properties Ltd
Registered and Licensed Real Estate Company. Reg. No. 1145, Lic. No. 572/E
Member of ETEK Registration No. A201999
https://www.fsbproperties.com
FSB Properties Ltd
Registered and Licensed Real Estate Company. Reg. No. 1145, Lic. No. 572/E
Member of ETEK Registration No. A201999
https://www.fsbproperties.com
Re: Title Deeds help wanted.
Hi Pantheman,
Many thanks for your reply. Yes agents details said full title deeds and lawyer said full title deeds, but have been in formed that they will be twothree months from when Leptos collect them. I don't know how long befor they collect them? Have been given an AX reference number. My contract says ....delivery of possesion of the property and the transfer of clear title deeds on the names of the Assignees, on paying the balance. Clearly this will not be, as they do not have the title deeds yet. So really don't know whether to pull out or not? Or what would happen if I did?
Many thanks for your reply. Yes agents details said full title deeds and lawyer said full title deeds, but have been in formed that they will be twothree months from when Leptos collect them. I don't know how long befor they collect them? Have been given an AX reference number. My contract says ....delivery of possesion of the property and the transfer of clear title deeds on the names of the Assignees, on paying the balance. Clearly this will not be, as they do not have the title deeds yet. So really don't know whether to pull out or not? Or what would happen if I did?
Re: Title Deeds help wanted.
Strange you should specify 'Assignees', because this would suggest you have an assignment contract not the usual sale contract???Helpme wrote:Hi Pantheman,
Many thanks for your reply. Yes agents details said full title deeds and lawyer said full title deeds, but have been in formed that they will be twothree months from when Leptos collect them. I don't know how long befor they collect them? Have been given an AX reference number. My contract says ....delivery of possesion of the property and the transfer of clear title deeds on the names of the Assignees, on paying the balance. Clearly this will not be, as they do not have the title deeds yet. So really don't know whether to pull out or not? Or what would happen if I did?
if the contract says that they will be transferred upon payment then that's what should happen, but it is a bit ambiguous, as it doesn't state (or you missed it out) immediately upon payment. So 'upon payment' could be interpreted as they will when they are ready.
By pulling out, you stand a good chance of losing the deposit, but could probably sue them for it as the sale description says 'Title deeds ready'.
Depends if you want to take the chance or not. If you have the AX ref number this just means that things have been applied for and you can check at the land registry the status. As an added safety you could just say you want to keep back 20,000 or so until they have been issued.
Good luck with whatever you decide.
P.S. I still think your solicitor is a plonker for not asking to see the actual title and even more so your agent who should have also known its status and not write mis-information. Have them and nearly having them is not the same thing in my book.
You should really be screaming at your solicitor (would your lawyer have the initials E.L. by any chance??) for allowing you to get into this position and your agent for not making sure all is ok before proceeding. Someone tells me they have a title, I want to see it. period.
For all your property needs, we offer Trust, Integrity, Honesty.
FSB Properties Ltd
Registered and Licensed Real Estate Company. Reg. No. 1145, Lic. No. 572/E
Member of ETEK Registration No. A201999
https://www.fsbproperties.com
FSB Properties Ltd
Registered and Licensed Real Estate Company. Reg. No. 1145, Lic. No. 572/E
Member of ETEK Registration No. A201999
https://www.fsbproperties.com
Re: Title Deeds help wanted.
Hi Pantheman,
Many thanks for your reply again.
Could you perhaps clarify, what is the difference between an assignment contract and the usual sale contract???
I assumed it was a sale contract. The contract refers to Assignors and Assignees.
And one paragraph ays the balance of ***** will be paid or or before such and such date simultaneously with the provision of tax clearance certificate for capital gains tax by the Assignor, the delivery and possesion of the property and transfer of clear title deed on the names of Assignees.
Is there a difference between clear tilte deeds and full title deeds? I had read it to mean the same thing.
The lawyer was P. A-M
Thanks again.
Many thanks for your reply again.
Could you perhaps clarify, what is the difference between an assignment contract and the usual sale contract???
I assumed it was a sale contract. The contract refers to Assignors and Assignees.
And one paragraph ays the balance of ***** will be paid or or before such and such date simultaneously with the provision of tax clearance certificate for capital gains tax by the Assignor, the delivery and possesion of the property and transfer of clear title deed on the names of Assignees.
Is there a difference between clear tilte deeds and full title deeds? I had read it to mean the same thing.
The lawyer was P. A-M
Thanks again.
-
Nigel Howarth
- Site Admin
- Posts: 3063
- Joined: 24 Oct 2007 12:38
- Location: Erimi, Limassol, Cyprus
- Contact:
Re: Title Deeds help wanted.
Hi Helpme
Perhaps I can explain. An assignment contract is used in cases where the vendor does not have the Title Deeds to the property. It enables them to assign their rights (and obligation) of their contract to the purchasers.
These are needed as until someone has a property registered in their name, it is not legally theirs to sell - an assignment contract is a way around the problem.
The law regarding assignment contracts was introduced in 2011. It overcame a problem that required to vendor to cancel their contract of sale with the 'owner' (usually the developer) - which allowed the developer to sell the property to the new buyer. In many cases developers demanded big payments for providing this 'service'.
You can read more about this in an article written by the law's architect at http://www.news.cyprus-property-buyers. ... /id=009874
Regards,
Perhaps I can explain. An assignment contract is used in cases where the vendor does not have the Title Deeds to the property. It enables them to assign their rights (and obligation) of their contract to the purchasers.
These are needed as until someone has a property registered in their name, it is not legally theirs to sell - an assignment contract is a way around the problem.
The law regarding assignment contracts was introduced in 2011. It overcame a problem that required to vendor to cancel their contract of sale with the 'owner' (usually the developer) - which allowed the developer to sell the property to the new buyer. In many cases developers demanded big payments for providing this 'service'.
You can read more about this in an article written by the law's architect at http://www.news.cyprus-property-buyers. ... /id=009874
Regards,
Nigel Howarth
Independent information & advice for Cyprus property buyers
Contact Nigel Howarth
Read the latest Cyprus property news
Independent information & advice for Cyprus property buyers
Contact Nigel Howarth
Read the latest Cyprus property news
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Justin Jones
- Posts: 2
- Joined: 08 Jan 2014 20:49
Re: Title Deeds help wanted.
Does anybody here own a property in St Nicolas, Paphos. If so do you have title deeds? Also how does the resort look and run at present? Is it busy in summer?
Re: Title Deeds help wanted.
Hi
I would never again in Cyprus purchase a property without a full title deed for what it's worth. It is far too painful and stressful.
Not sure of legalities re backing out of the property purchase but as an extra to what has been said to you …. any purchase on a UK credit card over £100 is covered by their guarantee. You basically dispute the transaction and give reasons. They refund and then pursue on your behalf. Your dispute would be that you have not been sold what you were told you would be.
It may well be worth a go when you decide how you want to go forward….
I would never again in Cyprus purchase a property without a full title deed for what it's worth. It is far too painful and stressful.
Not sure of legalities re backing out of the property purchase but as an extra to what has been said to you …. any purchase on a UK credit card over £100 is covered by their guarantee. You basically dispute the transaction and give reasons. They refund and then pursue on your behalf. Your dispute would be that you have not been sold what you were told you would be.
It may well be worth a go when you decide how you want to go forward….