Cyprus Property Forum for Buyers, Sellers & Investors

Hi Nigel,

I am looking at a property in Tala which has title deeds.
The present owner has added an extension without planning permission, essentially another bedroom. He is suggesting that we should buy it now and then apply for the planning permisssion otherwise it would slow the deal down and also affect the price.

What is your opinion on this?

Thanks

John

Hello John & Welcome,

If the present owner has extended the footprint of the building, then he should have got planning permission.

You could apply for planning permission once you've bought it, but this raises the question as to whether the authorities will grant permission. For example, if it's too close to the boundary (usually it has to be 3 or more metres away), or if it exceeds the building density for the zone, they may refuse permission. (But there is an amnesty that I believe may still be running that will enable you to overcome 'minor' planning infringements).

Also, the authorities can issue a demolition order, but I've yet to hear of one that's actually been implemented.

On the plus side, the property comes with Title Deed - a rare commodity in some parts of the island! So if you do decide to buy, you will not face the nightmare situations that many others have.

It's a difficult position, one the one hand you'll have the Title Deeds, but on the other there's no planning permission for the extension.

If you can get a copy of the plans, I suggest you visit the planning office and have a word with them to see if the extension's acceptable. They will not be able to give you a categorical answer, but they should be able to give you an indication of whether the extension's acceptable. If it is, then I suggest you proceed and apply for planning permission retrospectively.

(Given the situation, you may also be able to negotiate some money off the price).

Regards,

Hi Nigel
Thanks for the quick reply.

I have already negotiated some money off for it but the owner is Cypriot and is asking for a bit of cash so bringing the official price down.

As far as I can see without checking the plans this is not infringing the boundaries but seems to have built out over his own land which is quite large, and really now incorporates a previous balcony and is built on underneath as well.

Yes I probably will see if I can clear the plans, i@m no expert but it appears to have been well done and quite tasteful and certainly not going to annoy any of the neighbours.
Good luck with this website

Reghards

john

Hi John,

'Under the table' payments are very common here.

One thing you need to be aware of is that when you go to the Land Registry to get your Title Deeds, they will assess your Property Transfer Fees based on the market value of your property. This may not be the same as the amount entered on your Contract of Sale (particularly if you've made an under-the-table payment). So you may not save any money by doing this.

Also, if you sell the property, your CGT liability will be based on the difference between how much you paid for it (as shown in your contract) and how much you sell it for. So if you're contract doesn't show the full price, you'll end up paying more GCT.

This is a 'trick' often used by sellers to reduce their Capital Gains Tax liability. There are perfectly legitimate ways to reduce CGT liabilities, but under-the-table payments isn't one of them!

Take care

John
If it is of any use to you be aware that I am in the market to purchase built property for my children but have stipulated that free & clear title deeds of Greek Cypriot origin must be freely available for immediate transfer (this due to problems encountered buying land). To date I have probably shortlisted in the order of thirty resale properties within my budget & appearing to be suitable and all but one do not have clear transferable title. The vast majority because the property was not built legally. The sad bit is that after driving from Pissouri to Larnaca to view the one & only property that was allegedly ready to transfer the agent did not show up. The "buy it first & apply for title later" story seems to be a common one - it sounds easy, well if it's that easy why doesn't the vendor secure title first. Not an unreasonable question is it? Please be carefull.