Cyprus Property Forum for Buyers, Sellers & Investors

I want to ask the opinions about some Unpaid old sewerage taxes and municipality taxes for an apartment that was purchased in 2022 from a friend.
The apartment had a separate title deed but still in the name of the developer that was bankrupt, so bought through a contract of assignment.

A lawyer was appointed to follow the procedure. This friend adviced by email the lawyer that there is some upaid sewerage and property tax (talking with other owners). The answer was that they make many transaction and that is the their work. Contract was signed with the indication that the seller has responsibility for all the old debts until the date the purchaser/assignor delivered possession

AEA application was made and after some months this friend discovered the the sewerage and property tax was unpaid (about 1800€). The lawyer said that the seller lawyer was unprofessional and bla bla bla. After two years no way to obtain nothing (meanwhile the AEA application was blocked).

Do you believe there is professional responsability of the lawyer and make sense to inform the bar association or bring to court for this amount? Or to sue the seller in consideration of the contract (always considering the amount and the fact that the seller live in the UK)?

Moreover there is some strange things regards this taxes (this unpaiad taxes are maily in the name of the developer and calculated seems on land shared with other blocks of apartements because a separate title deed was not existing).

The sewerage board refuse to give detailed calculations (only after the payment they say) and the suggest the often the lawyer cheat the customers ???

Moreover seems that this taxes has to be considered time barred after 6 years (Law 66(I)/2012, Section 4).

This raises the question of how individual owners can be charged retroactively when legal ownership was not yet established and billing was not addressed to them individually?

Nobody has some ideas? I have the impression that in Cyprus everyone does what they want.
I suggest to deposit a letter to the sewerage board with this argumentations but probably will never receive an answer.

Considering that meawhile the AEA application is restarted few days ago do you suggest to pay and eventually ask back to the sewarage board and the seller / lawyers?

Thanks for you opinions and suggestions

Hi zambm166 and welcome to the forum

Regarding your AEA (Trapped Buyers) application TPTB are working on a solution that should help a number of people, but I can't say whether it will help you.

It was your lawyer's responsibility to carry out due diligence on the property you bought. Had he done so he would have uncovered these unpaid municipal and sewerage charges plus any other charges and debts (such as unpaid communal fees) burdening the property. He should have advised you of the consequences if you proceeded with the purchase, allowing you to make an informed decision whether or not to buy the property.
But instead he's fobbed you off by telling you the vendor's lawyer was unprofessional!!!

What I suggest you do is get a search from the Land Registry. Follow my guide at New title search procedures in Cyprus. This will highlight all charges and debts burdening the property.

When someone buys a property they become liable for all the property-related taxes, etc. from the date they take delivery of the property.

You say these unpaid taxes, etc amount to around €1,800 - it will cost you more in legal fees to recover these from the friend from whom you bought the property.

Let's wait and see what the search from the Land Registry shows before deciding how best to deal with the situation.

Regards,

The Land registry give confirm few days ago that they reopened the AEA applications, at least in the Famagusta district (there was no mortgage in this case) because previously they suspended all the applications (even the applications not involved in the change of legislation).
Obviously they want proof of payment of sewerage and property tax. The unpaid tax (taking in account the part after the sign of the contract, and a 1000€ that was keep from the purchasing price to pay some works to the committee to clean the notes on the title, of which only 400€ was spent, are about 800€. The title will so be clean. Inspections after the works was already made.
Anyways considering the the lawyer confirmed by mail that all the taxes was payed, take legal responsibility, and so send a letter to Bar Association I think will make sense. The lawyers are payed to protect the interests of the clients and not the contrary, so they have liability if they works in a not professional way. And checking the sewerage and property tax for a property without issued title deed is ordinary diligence.
Anywaysvit's strange any law that put the liability of unpaid taxes to a person that was not involved (as can be see from a registered contract).


Thanks

Hi zambm166

All the units comprising the development are owned by the developer as the Title Deed is registered in their name.

All invoices are sent to the registered owner (developer) who should pay them - and then issue an invoice for each unit for their share (that's how it's supposed to work.)

But developers often do not pay these invoices until Title Deeds are issued for all the units and then invoices. But this causes problems as late payments incur penalties and developers 'expect' the buyers to pay these as well as the basic invoice amount.

You could complain to the Bar Association, but I wouldn't hold your breath waiting for an answer let alone satisfaction.

Regards,

Dear Zambm166,

It is your lawyers fault that these remain unpaid. He should have demanded the receipts and certificates from the seller's lawyer. If you want to sue anyone, then sue him.

No point writing to the sewerage board it won't help. Money that is owed to the state always gets paid.

If your contracts states that the seller will hand over free from any expenses, then he is liable to be sued, however if this occurred back in 2022, then the statue of limitation has passed for breach of contract.

Good luck