Cyprus Property Forum for Buyers, Sellers & Investors

Posted: **11 May 2024 12:13**

Hello,

I recently saw a resale property (about 15 years old) that I might want to see. The unit still has the original owner who bought off plan. The separate title deed became available about 5 years ago, but the owner who is a foreigner, never assumed the deed so it's still under the developer. This is what I've been told.

Upon sale, would it be possible to transfer the deed from the developer directly the the new owner or would this be a long and costly process? Keep in mind, a lawyer would carry out the necessary due diligence.

Another note, the unit has been rented for several years.
The lease expires in November with auto-renewal.

Posted: **12 May 2024 09:44**

Irini wrote: 11 May 2024 12:13would it be possible to transfer the deed from the developer directly the the new owner

Because Title (ownership) of the property hasn't been transferred to the original purchaser, this isn't possible.

You'll need your lawyer to draw up an 'Assignment Agreement'. This enables the original purchaser to transfer their rights and obligations in their purchase agreement to you.

The Assignment Agreement is then deposited at the Land Registry. The Land Registry fee is 0.5% of the sale price. The minimum fee is €50 and maximum fee is €3000.

The property has to be transferred twice:

1. From the developer to the original purchaser (at the purchaser's cost.)
2. From the original purchaser to you. (at your cost.)

(The original purchaser can appoint a Power of Attorney to do whatever's necessary on his/her behalf)

A few things your lawyer needs to do.

As the property's 15 year old and hasn't been transferred to the original purchaser, it's possible that he owes the developer money for taxes, etc. that the developer has paid on his behalf. Your lawyer needs a statement from the developer of any money owed (you can use this to negotiate the price.)

Secondly, if the property is part of a complex that shares facilities like a swimming pool, gym, tennis courts, etc. your lawyer needs to check with the complex's Management Committee to see if the original purchaser owes money for insurance, maintenance, repairs, etc.

A few other things for your lawyer. Check there are no outstanding debts on the property or any other 'encumbrances' that will prevent the transfer of the property to you. Check there are no planning infringements and that Title is 'clean'.

Regards,

Posted: **12 May 2024 22:18**

Dear Nigel,

I am joining this question.
The property we're interested in is 100% owned land (vertical division, not share of land, no communal facilities), and the deeds are still in the developer's name. The sellers bought it off-plan 16 years ago and never transferred the deeds to their names (we asked why, didn't get an answer). We were advised that separate title deeds for the house are "ready to be transferred", and that they will be transffered to us on the same day we sign with the sellers at the land registry office. Apperantly, recent land registry search showed that there are no mortgages on the property.

Does this sound right? I'm confused about the process of moving from certificate of final approval (in case there are no memos/comments on it) to the issuance of separate title deeds for the house. What does it even mean that they are "ready"? I hear issuing separate title deeds can take years even after obtaining certificate of final approval.

Also, how can we ensure that the developer will transfer the ownership to us? As they are not party to the Assignment Agreement, what is their incentive?

Anything else we should consider? We did speak to a lawyer but didn't get proper answers. We'll be looking for a new one (recomendations will be greatly appreciated).

Many thanks!

Posted: **13 May 2024 00:59**

Nigel Howarth wrote: 12 May 2024 09:44
Irini wrote: 11 May 2024 12:13would it be possible to transfer the deed from the developer directly the the new owner
Because Title (ownership) of the property hasn't been transferred to the original purchaser, this isn't possible.

You'll need your lawyer to draw up an 'Assignment Agreement'. This enables the original purchaser to transfer their rights and obligations in their purchase agreement to you.

The Assignment Agreement is then deposited at the Land Registry. The Land Registry fee is 0.5% of the sale price. The minimum fee is €50 and maximum fee is €3000.

The property has to be transferred twice:

1. From the developer to the original purchaser (at the purchaser's cost.)
2. From the original purchaser to you. (at your cost.)

(The original purchaser can appoint a Power of Attorney to do whatever's necessary on his/her behalf)

A few things your lawyer needs to do.

As the property's 15 year old and hasn't been transferred to the original purchaser, it's possible that he owes the developer money for taxes, etc. that the developer has paid on his behalf. Your lawyer needs a statement from the developer of any money owed (you can use this to negotiate the price.)

Secondly, if the property is part of a complex that shares facilities like a swimming pool, gym, tennis courts, etc. your lawyer needs to check with the complex's Management Committee to see if the original purchaser owes money for insurance, maintenance, repairs, etc.

A few other things for your lawyer. Check there are no outstanding debts on the property or any other 'encumbrances' that will prevent the transfer of the property to you. Check there are no planning infringements and that Title is 'clean'.

Regards,

Very helpful information Nigel. I've seen the word 'assignment' on other listings. Now I understand what it means. Thank you for shedding some light on the process.

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