Cyprus Property Forum for Buyers, Sellers & Investors

Dear Nigel

I am Laura.
Please would you advise us?
A while ago we purchased a property off plan. I had a penalty clause written into the contract for late completion. I also with held a sum of money to be paid a year after completion. The developers were approximately six months late regarding completion which they say was beyond their control. Also, they have not completed the snagging list, that is replaced a damaged work top. They are now asking for the retained sum of money along with communal charges which we have not paid as the amount owing to us in our opinion is more.
Although the developers claim that the property was not completed due to circumstances beyond their control there were many aspects of the property and development that were incomplete and unaffected by the authorities who they claim delayed completion. I have photographic evidence.
Do they have to prove that completion was delayed beyond their control or do we have to simply accept what they say?
We also feel that they have not carried out the communal management as we all would have wished. They have offered to bow out however, as I now understand it until we have the title deeds we cannot set up an owner’s management committee. Also, as we live in the UK it would not be easy to run.
We would appreciate any help and or advice on these matters, thank you.

Hi Laura and welcome to the forum,

I’ve moved your question to a more appropriate area.

Late delivery is a very common problem – and if your contract states that you are entitled to some form of compensation, then you have every right to claim it.

But you can only claim for things specified in your contract of sale. (So you can’t claim for things like other properties on the development being incomplete.)

The amount you will be able to claim will be based on your loss. Typically this would be the loss of rent you would have reasonably expected to receive during the 6 month delay.

Some contracts exclude delays caused by force majeure. These are natural disasters, Acts of God, war, terrorism and other circumstances outside of the control of the developer. But it is important to remember that force majeure clauses in your contract are intended to excuse the developer only if the delay could not have been avoided by appropriate action on his part.

For example, if he said the weather meant he couldn’t work on site wouldn’t be a valid excuse (it always rains in Cyprus – and it’s always hot). Similarly, he cannot claim that the planning authorities were to blame for delay – everyone knows how inefficient they are and the developer should have made allowances for this in his plan.

As for what you should do now. If the developer isn’t playing ball, I suggest you speak with your lawyer – without seeing your contract of sale, I cannot give you an opinion on the matter.

Regarding the maintenance fees. These are unconnected to the delay in delivery and snagging problems, so I suggest you pay them (I assume you have a written agreement with the developer to provide these services, including costs, etc?)

Regards,