*** Applying for your Title Deeds ***

General questions & discussions on Cyprus property related matters
Nigel Howarth
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*** Applying for your Title Deeds ***

Post by Nigel Howarth » 14 Nov 2015 22:03

Many people have contacted my about applying for the deeds under the new 'trapped buyers'/'hidden mortgage law' following messages posted another forum and Facebook which say that Title Deeds are only be offered to cash buyers (which is a load of rubbish.)
  • To set the record straight, if a purchaser wishes to apply for the Title Deeds to the property they purchased, the only requirements are that:

    (1) their contract of sale has been deposited at the Land Registry and

    (2) they agree to deposit any outstanding financial obligations to the vendor is a into a special account set up by the Land Registry. (e.g. In their contract, some people were able to hold back a few thousand Euros until the Title Deed was available for transfer - they have to agree to deposit this money with the Land Registry.)

    You do not need to contact the developer - if the Land Registry needs any information from the developer, they will contact him.

    You'll find the application form and other information in an article I wrote - 'Apply for your Title deeds'.
(Someone involved in this other forum contacted me at the end of October to say that my readers may be interested in a campaign. You can read the correspondence by clicking here.)

Regards,


Nigel Howarth
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tikw
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Re: *** Applying for your Title Deeds ***

Post by tikw » 04 Dec 2015 10:24

Good morning Nigel.
I took the downloaded form to my developer to clarify some of the information needed to complete it. They told me this form was for individual property owners and not for complexes ( we have 156 properties on our complex) and that they would soon be receiving the title deeds to distribute.

Are they waffling, or is this true?

Regards,

Keith



Nigel Howarth
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Re: *** Applying for your Title Deeds ***

Post by Nigel Howarth » 04 Dec 2015 18:43

tikw wrote:They told me this form was for individual property owners and not for complexes.
They are waffling. ANYONE who has purchased a property can apply for its Title Deed regardless of whether it's an individual property or part of a complex.

In you case I would hope that the purchasers of every one of the 156 properties on your complex will apply - it will cost them €10 each.

(You can find the law in Greek and English at http://www.news.cyprus-property-buyers. ... ge-law.pdf (The English translation starts at page 18)

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Nigel Howarth
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Campion16
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Re: *** Applying for your Title Deeds ***

Post by Campion16 » 11 Jan 2016 23:18

Nigel,
In your most recent post about trapped buyers I read that if the developer has outstanding IPT bills etc we won't get our deeds. I know from a search that I did a couple of years ago that he has outstanding taxes but not what they are. If we are in the position of net getting the deeds, will the land registry inform us and tell us why they won't be issued?



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Re: *** Applying for your Title Deeds ***

Post by Nigel Howarth » 12 Jan 2016 01:11

Hi Campion16 and welcome to the forum.

Outstanding IPT is not a problem - it's the community/municipality property taxes and sewerage charges (but these aren't too significant.)

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Nigel Howarth
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barrieshaw
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Re: *** Applying for your Title Deeds ***

Post by barrieshaw » 29 Jan 2016 23:19

Hi Nigel my Wife & I arrived in Paphos this week.
It is our goal to try and obtain our title deeds or at least file everything so that things go smoothly if we have departed.

I went to the Paphos land registry office today & found a very friendly lady at the reception desk, luckily she spoke excellent English.
I explained that i wanted to apply for our deeds. I had the original contract with all the stamps from

She informed me I had to go our developers Office ( LEPTOS ) as deeds had been issued to them, I would have to come back to Land Registry with a Representative from Leptos as proof that we had paid for the property in full & there no debts outstanding.
I thought I could apply myself without involving Leptos, as I know they will try to extract funds from me, it is Their way !!

Next I asked her if she would calculate the cost of the deeds. i said i believed there was a 50% + 10% = 60% discount if deeds were transferred before Dec 2016.
she said there was a 50% discount applicable to my wife & I, the extra 10% was only for people in trapped situations.
I am confused as I have read several times that we are all eligible for the extra 10% ?

she then went on with the following calculation.
purchase price of apartment in 2003 CYP£108.500 her calculation conversion to Euro 185,383
as the property is in both my Wife & my name's she divided the price by 2 = Euro 92,691.50
next the first Euro 85,000.00 at 3% tax = 2,550 Euro
the remaining Euro 7,691.50 at 5% tax = 384.57 Euro
Total for one person = 2,934.57 Euro
she said this would normally be doubled for a couple, but as there was a 50% discount our transfer fee would be 2.934.57 Euro
Unless when the manager looked at the application he felt the property was sold to us for less than he considered the true value in which case the valuation of 185,383 Euro would be increased.
I was shocked at this statement, as I paid the asking price.
Are they making rules up as they go along ?

hope to hear from you soon.

Thank You and Best regards
Barrie



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Re: *** Applying for your Title Deeds ***

Post by Nigel Howarth » 30 Jan 2016 13:10

Hi Barrie

From what you said it appears that there are no mortgages or other claims on the property preventing its transfer to your name - so the 10% 'trapped buyer' law discount will not apply.

See my Apply for your Title Deeds now. It says:

"In cases where an application is successful, the purchaser will be requested to pay the Property Transfer Fees within 60 days of a notice to transfer the property. If the purchaser pays within the 60 days they will be entitled to a 10% reduction in the transfer fees or pay the transfer fees in 12 monthly instalments."

So you will go through the 'standard' transfer process as described on pages 45 & 46 of the Department of Lands and Surveys Citizen’s Charter.

As you didn't pay VAT on the purchase price of the property you are entitled to receive a 50% discount on the Property Transfer Fees if the transfer takes place by 31st December 2016. For further information please see Reduced Property Transfer Fees.

The Land Registry is required (by law) to assess the market value of the property you purchased at its date of sale - this may or may not be the same as the amount you paid. If it is larger you can argue your case and if necessary have the property valued independently.

This is done in an effort to prevent tax fraud as some people under-declare the purchase price in their contract of sale and pay the balance of the purchase price to the vendor in a brown envelope.

This assessed value can cause problems for some people - see Is a property only worth what someone will pay for it?.

When you were at the Land Registry, did you ask for the 1980 value of the property? (I may be able to assess the IPT you may have to pay Leptos from when you took delivery of the property up to 2013.)

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Nigel Howarth
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barrieshaw
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Re: *** Applying for your Title Deeds ***

Post by barrieshaw » 30 Jan 2016 22:52

Hi Nigel,
Thanks for responding so quickly, really, very much appreciated.

OK, Leptos say the value of my apartment as at 1/1/ 1980 was 25,451 Euro

I don't know but this seems quite high ?

The contract is in 2 names my Wife & I.

could you please show the figures you use to calculate any IPT that may be due.

Also, if we pay for the transfer within the 60 day limit they will discount a further 10% from the 50% already granted. ?

Thanks Again Nigel,

Best regards

Barrie
Last edited by barrieshaw on 30 Jan 2016 23:00, edited 1 time in total.



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Re: *** Applying for your Title Deeds ***

Post by Nigel Howarth » 30 Jan 2016 22:59

Hi Barrie - in what year did you take delivery of the property?

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barrieshaw
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Re: *** Applying for your Title Deeds ***

Post by barrieshaw » 30 Jan 2016 23:04

purchased off the plan in 2003, given the Keys, nearly 2 years late from the date on the contract in 2007

Best,
Barrie



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Re: *** Applying for your Title Deeds ***

Post by barrieshaw » 31 Jan 2016 12:28

Can you also please advise Nigel,
if as they said at the land registry, I have to go the Leptos office and ask them to attend the land registry in person with me ?
i can imagine they will charge a hefty fee for this.

Best regards
Barrie



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Re: *** Applying for your Title Deeds ***

Post by Nigel Howarth » 31 Jan 2016 14:03

Hi Barrie

Based on a 1980 value of €25,451 IPT payable to Leptos will be:

Year @ Rate - IPT

2007 @ 0.40% - € 101.80
2008 @ 0.40% - € 101.80
2009 @ 0.40% - € 101.80
2010 @ 0.40% - € 101.80
2011 @ 0.40% - € 101.80
2012 @ 0.80% - € 203.61
2013 @ 1.90% - € 483.57

Total: € 1,196.20

Leptos shouldn't charge you to attend the Land Registry.

As you haven't made a successful application under the provisions of the 'trapped buyer'/'hidden mortgage' law you will not get an additional 10% discount on the Property Transfer Fees. (If you had made a successful application you would have received a notice from the Land Registry advising you to collect the deeds within 60 days - and a representative from Leptos would not need to attend when the transfer takes place.)

You can check whether the 1980 value is correct at the Land Registry. (It looks to me as if you purchased a 2-bedroom apartment?)


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barrieshaw
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Re: *** Applying for your Title Deeds ***

Post by barrieshaw » 31 Jan 2016 16:05

The figures for IPT have shocked me a little, as I thought with the property in 2 names we fell out of the IPT bands. The figures for 2013 & 2014 have really shocked me.
Yes 2 bedroom apartment.
Regards
Barrie



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Re: *** Applying for your Title Deeds ***

Post by Nigel Howarth » 31 Jan 2016 18:45

Hi Barrie

Until the law changed in 2014 it was the responsibility of the owner to pay Immovable Property Tax - and the tax is calculated on the total 1980 values of all the properties they own.

In the case of Leptos and many of the other developers the total of their properties 1980 values runs into many millions of Euros - and they are charged at the top rate.

When you eventually get the deeds you can apply to the Tax Office to recover any legitimate IPT overpayments. There are a number of forms you will need to complete - 301, 302, 303 and 314. (I expect you'll be able to claim virtually all of the IPT you paid to Leptos.)

(The change in the law in 2014 made those who had taken delivery of a property responsible for paying IPT, which is why you & your wife only had to pay a very small amount as you only have a singe property.)

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Nigel Howarth
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barrieshaw
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Re: *** Applying for your Title Deeds ***

Post by barrieshaw » 31 Jan 2016 19:32

Oh Dear Nigel,
I tried to make my initial inquiry as simple and uncomplicated as possible by giving you all the details & figures for one apartment thinking I could then just apply the calculations to the others.
your last reply regarding amounts owe-able makes me think we could be in a different situation ?

We actually purchased 3 apartments off the plan all at the same time next door to each other. All 3 in both names.

To be honest we intended to flip them upon completion but they were 2 years late on the contractual date & the GFC hit so we are stuck with them.

As yet the properties have not been registered at the tax office in our names, we were going there tomorrow to do this & open a tax file in our names for the properties.

we have 2 x 2 bedroom apartments & a 1 bedroom at Limnaria Gardens.

i am wondering if your last reply alters everything ?

hope to hear from you soon,

Best Regards
Barrie



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