Cyprus Property Forum for Buyers, Sellers & Investors

Hi,

I am having another sleepless night and want to know if it is at all possible to get out of the mess that I have created?

I have paid 170k euros for a one bed property in paphos, ive paid 18k cyp deposit to the developer and have a bank loan for the remainder of the amount. Since signing the contract the developer has drawn down a sum of 20k euros from the bank.

I am wondering if there is anyway out of this contract? Is it best to instruct the bank to not let the developer draw down any further amounts and let the bank take possesion of the property (building hasnt started yet - so they would be taking posession of a plot and my deposit).

The development is due to finish sept 2010 and i imagine it will be delayed, i dont think i could take the pressure until then, I no longer eat or sleep due to the worry.

I would be grateful for any help.

Dear Erikah

I'm sorry hear that you haven't managed to resolve this yet. Did you read the article I wrote HELP – I can’t pay the mortgage!

How was the developer able to draw down €20k - did you give a lawyer Power of Attorney? If so you should cancel this immediately and notify the bank that you have cancelled the Power of Attorney. I suggest that you email the parties concerned and follow up with a registered letter.

That will prevent the developer drawing down any more money unless you give the go-ahead.

(If no construction work has started, I can't see why your developer has taken the money in addition to the €18k you've already paid - there may be an explanation in your contract of sale)

Turning to the problem of getting out of the contract, this may prove difficult. If your lawyer isn't being helpful, you may wish to switch to another. If you want to do this, you'll need to discharge your current lawyer and have your file sent to another - you'll need to settle your account before moving.

If you want to get in touch with me directly, click here and complete the form and I'll get back to you.

Regards,