Property search results

[Expresspete]

Good afternoon, can anybody please advise? We currently reside in the UK and are attempting to buy a property in Paphos. We have had an offer accepted (listed with title deeds available), but having carried out the relevant searches our Cypriot Solicitor has reported the following:-

The two topics to consider are the following:
 
A.    Encumbrances on the property
B.    The title deeds issuance procedure
 
A.   Encumbrances
 
The land on which the project is build has 2 mortgages. Only the one of the 2 mortgages has priority over your property. However the new law issued in 2015, allows purchasers to take priority if they have paid the purchase price, and if their contract is lodged at the land Registry.
 
There are also several MEMOS, i.e. court decisions registered as encumbrances; however all of them are subsequent to the contract of sale for the property in question, so can be ignored if a certain procedure is followed.
 
If you decide to proceed, when the title deeds are ready we will apply under the new law in order to effect the transfer and for mortgages and MEMOS to be set aside.
 
B.   Title deeds issuance procedure
 
In order for the title deeds to be issued, the following permits must be secured
1)    Planning permit
2)    Building permit
3)    Cover planning permit (in case of additions/alterations)
4)    Cover building permit (in case of additions/alterations)
5)    Certificate of final approval
6)    Division permit
7)    Submission of documents at the land registry
    Issuance of title deeds
The project and property have a planning and building permit.
 
Due to the fact that there are some additions/alterations, a cover planning and cover building permit are required. The lawyer of the vendor gave us some information. They have already applied and secured the cover planning permit.
 
They have now proceeded with the application for cover building permit and certificate of final approval. 
 
There is already a file with reference number under AX, at the land registry for which they are waiting for the cover building permit and cover planning permit to complete it.
 
Please let me know if you have any questions and advise how you wish to proceed.
 
In my opinion is wise to apply from now under the law of the drapped purchasers. If you want us to proceed with that please instruct, so, we will inform you of the papers required.
 
Kind regards...........

Our question is - would we be wise to proceed or run away?
thank you in advance
Pete& Lynne

[Nigel Howarth]

Hi Pete & Lynne

From what you say I can assure you that the Title Deeds are most definitely NOT available!

Also as the Certificate of Final Approval has yet to be issued, there is no way of knowing whether the property will pass inspection by the Planning Department. If it fails inspection you may get a Certificate of Final Approval with notes or if the problem is severe a Certificate of Unauthorised Work. If the latter you will be unable to sell or mortgage the property.

As for the mortgage that has priority over the property, a law that was introduced in 2011 enables you to pay the outstanding mortgage relating to to the property to the bank and the balance to the vendor. Eg. If the property is being sold for €120,000 and the balance of the mortgage relating to the property is €20,000 you will pay €20,000 to the lending bank and the balance of €100,000 to the vendor. The Bank will issue a waiver against the priority mortgage.

Regardless of any planning and mortgage problems, it's extremely unwise to buy a property without seeing it and inspecting it for yourself. Would you buy a property in the UK without inspecting it?

Personally I would tell the vendor to stuff his property where the sun doesn't shine. He's already lied about the Title Deed and I wonder how many other lies he's told.

Regards,

[Expresspete]

Good morning Nigel,
thank you for your very prompt reply, which I really appreciate.
I'm sorry, I failed to mention that we have seen the property and we did engage an independent Surveyor who has reported that the house is 'structurally sound' but does require some 'remedial work' which he has listed. It was the Estate Agent who informed us that the Title Deeds are 'available.'
The 'quoted letter' I included in my post was from my Cypriot Solicitor.
With apologies for my misinformation,
Best regards
Lynne & Peter

[Pantheman]

I'm with Nigel on this.

Since the Estate Agent stated title deeds available, ask him for a copy and see what he says.

When he con't produce them, then ask him why he misled you in the first place.

Then, your lawyer could and should have asked for the title deeds, and upon non production could have saved all the effort needed to investigate it, which you will no doubt end up paying for.

Walk away my friend, you best option, seems the property is fraught with many legal issues and you may end up never getting those deeds. I am sure there are many other properties available in Paphos to choose from.

Good luck

[Nigel Howarth]

Good morning Pete & Lynne

Thanks for clearing that up. One thing I spotted in the letter from your solicitor "In my opinion is wise to apply from now under the law of the drapped purchasers." (I think he/she means trapped).

You will be ineligible to apply for the deed because "The only prerequisite for filing an application is that a Contract of Sale or a vesting/assignment contact to purchase the property must have been deposited at the DLO in which the property is situated by 31st December 2014." (Please refer to my article at: http://www.news.cyprus-property-buyers. ... d=00126681 ).

Even if you were eligible to apply for the deeds the banks have obtained court orders preventing the transfer of properties under the 'trapped buyers' law successfully claiming that the law is unconstitutional.

Did you use a lawyer on the list provided by the British High Commission in Nicosia - or someone else?

Regards,

[Expresspete]

Once again thank you Nigel, the Solicitor we are using does not appear to be on that list.
Our Solicitor is: MICHAEL MANTIS PENELOPE ATHINODOROU - MANTIS For MANTIS & ATHINODOROU LLC Advocates.

We have paid a €3000 deposit to the Estate Agent to tak,e the property of the market - do you think we have a case to have said deposit returned!
Kind regards
Lynne & Peter

[Nigel Howarth]

Hi Lynne & Peter

If you handed over the €3,000 to the estate agent without any form of written agreement stating the circumstances under which it would be refunded, I'm sorry to say that the chances of recovering your money are remote.

If the agent refuses to return the money you could take legal action, but I expect the costs involved would be greater than €3,000.

Regards,

[LynnetteB]

We did sign an agreement and all is ok, I have spoken to them and we can get our money refunded. Deposit was refundable if the searches found any encumbrances on the property.
Lynne

[Nigel Howarth]

That's good news Lynne.

For your future reference please refer to Top 10 pitfalls to avoid when buying property in Cyprus.

Regards,

[Expresspete]

Hi Nigel,
thank you so much for you advice. We have been in touch with the Estate Agent and they have agreed to refund our deposit in full.
Having sold our house in the U.K., it's time to book more flights back to Paphos and, with your advice very much in mind, seek our retirement home once again.
Many thanks Nigel
Lynne & Peter

(I see Lynne has already updated you )