Cyprus Property Forum for Buyers, Sellers & Investors

Hi,

I am looking for some advise on selling my villa through Aristo Developers who we originally brought from off plan in 2003. Have you come across anyone who has sold through Aristo Re-sale department and if so has it been a smooth procedure?

We have been trying to sell the villa for 2 years with a local estate agent and we have also marketed the villa ourselves privately. We had many successful viewings and offers in those 2 years but when it came down to the interested parties applying for a mortgage we could not go any further with a sale due to the fact we are not in possession of the title deeds and have no idea when we will be.

Whilst out in Cyprus a few months ago we decided to contact the re-sale department of the developer we originally brought from. They came to look at out property and explained how things would work if we allowed them to market the villa. There are a few things we would not be comfortable with, one of them being that we need to sign a cancellation agreement before a new buyer is found between the land registry and ourselves. We have received legal advise from our solicitor not to sign this contract but the developer will not allow us to market the villa with them unless we do sign it. Is this a common procedure for when you put a property up for sale with the original developer?

The only reason we are considering selling the villa through the developer is because of the title deed situation and we have been told that we could still be waiting between 2-5 years for them to be released in our name. We cannot afford to wait this long.

Kind regards
Danielle

Hi Danielle and welcome to the forum.

The problem is that because you do not own the villa (because its Title Deed has yet to be issued and registered in your name) you cannot sell it without the approval and active cooperation of the owner, who in your case is Aristo.

When a buyer is found, the contract of sale between yourselves and Aristo has to be withdrawn from the Land Registry. This enables Aristo to enter into a new sale agreement with the buyer, which is then lodged at the Land Registry. Aristo will then pass onto you the proceeds of the sale less their commission and other expenses.

The cancellation agreement is a contract between yourselves and Aristo that enables the above to happen.

Your lawyer must have a good reason for advising you not to sign the cancellation agreement - maybe the terms and conditions are not favourable or maybe there are other aspects of the agreement he/she does not like. Did your lawyer give you any reason for advising you against signing?

It may also be that you already have a clause in your original sale agreement with Aristo that enables you to sell. This would read something like:

"If at any time after signing this agreement the purchaser wishes to sell the property, the purchaser has an absolute right to do so as he is deemed to be the beneficial owner of the property, provided that has fulfilled all his financial obligations to the vendor".

This is known as a 'right to sell clause' and your lawyer should have included this, or something similar, in your sale agreement. If such a clause is in your agreement, there is no necessity for you to sign another agreement with Aristo.

I suggest you speak with your lawyer and find out what the problems are.

Regards,

Do not sign any cancellation agreement with out a buyer first and without your lawyer doing it for you.

Your contract at the land registry is the only protection you have, why give some an opportunity to get it withdrawn by presenting this cancellation document.

seriously, would you give your house without payment on a say so, becuase in effect, this is what you would be doing. Once you have signed the cancellation agreement, you have nothing on Aristo. Be aware, very aware.

Seems very fishy to me to ask for this upfront, and what cancellation charges did they ask you for??? Or is that going to be another surprise!!!!!

The developer has no better chance of selling than anyone else, you could place it with 3 or 4 agents.

What Aristo is likely to do is put it put to his own agents anyway for a cut in the commissions.

I don't know the full circumstances, but there is no real reason you cannot sell without title deeds. I have made sales and all without deeds.

You could get a cash buyer or the new buyers lawyer can ask for a bank waiver from Aristos bankers. Perhaps its just Aristo being difficult to force you to take this route.

I can't believe for a moment that no other Aristo customer has not been able to sell without using them??

If your lawyer has said no, then no. I say no as well. But the coice is yours.

Good luck.