*** Applying for your Title Deeds ***

General questions & discussions on Cyprus property related matters
SimonG
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Re: *** Applying for your Title Deeds ***

Post by SimonG » 31 Jan 2016 21:18

Having applied for the Title Deeds to our apartment, what happens where the resort remains unfinished? The developer has failed/refused to complete the external pavements around the resort, this includes the utilities that should be underneath the pavements. Pavement lighting, plus half of the road to the resort and the green area are also incomplete, despite the developer receiving 100% of the funds from owners.

On receipt of Title Deeds, does the legal responsibility for completing the resort (89 apartments) then pass from the developer to the owners? Could this be an unintended consequence of the September legislation?

Could someone please clarify what the legal position is under the new Title Deeds legislation.

Thank you



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

Post by barrieshaw » 01 Feb 2016 11:36

Hi Nigel,
i decided I would await a reply from my last message explaining the full extent of our situation before going to Tax office today.
I feel much more comfortable being armed with the correct information.

Hope to hear from you soon,

Best regards

Barrie



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

Post by Nigel Howarth » 01 Feb 2016 11:53

SimonG wrote:Having applied for the Title Deeds to our apartment, what happens where the resort remains unfinished?
You may be asked to to complete a couple of extra forms. Please see the October 28 update to my article Apply for your Title Deeds now.

It may be that the only way you can get your deeds is for the purchasers to club together and pay to have the development completed - and then sue the developer to recover the cost.

It's best that you talk to your lawyer and get their opinion on the matter.

Regards,


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

Post by barrieshaw » 01 Feb 2016 11:56

Hi Nigel,
re sending this as it did not appear on our message thread.

I will wait before going to Tax office today for a reply as i think our position may be different due to your last post.
I would feel more comfortable having heard back from you before attending.

hope to hear from you soon,

Best regards
Barrie



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

Post by Nigel Howarth » 01 Feb 2016 13:39

Hi Barrie

The Immovable Property Tax you pay will be based on the combined 1980 value of all three apartments.

Let's say their 1980 values are €25,000, €25,000 and €18,000 - a total of €68,000.

As you bought in joint names, your individual IPT liability will be calculated on €34,000. This will put you in the €12,501 to €40,000 tax band and the rate is 0.6%

So you will each have to pay €408 to the Tax Office (2014 & 2015 combined) - plus penalties for late payment. (I think the penalty for late payment is 10% of the tax owed plus a pro-rata 4.75 per cent annual interest rate.)

The amount you pay to Leptos for the back years should be €3,196 assuming you delivery of all three in 2007.

Regards,


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

Post by barrieshaw » 01 Feb 2016 14:50

Thanks for your reply Nigel,
do you think we will still get most of €3,196 we have to pay Leptos reimbursed as you mentioned before using the form 301 etc.

Regards
Barrie



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

Post by Nigel Howarth » 01 Feb 2016 22:05

Yes Barrie - you should be able to recover most (if not all) of the €3,196.

Regards


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

Post by barrieshaw » 01 Feb 2016 22:33

Nigel,
I cant thank you enough for all this advice, i don't know what us Brits do without you :)
Thank You so much for all your help.

I will let you know how we go.

Very Best Personal Regards
Barrie



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

Post by Nigel Howarth » 02 Feb 2016 17:18

You're welcome Barrie

I hope that everything works out OK for you.

Regards,


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

Post by barrieshaw » 09 Feb 2016 12:09

Hi Nigel,
its Barrie again.

we have now registered our apartments at the tax office, paid for years 2014-15-16

we then went to Leptos to obtain the figure they say we need to pay them prior to deeds being transferred to our names.

these the figures you gave me earlier in this thread.
then i have i added the figure they gave me, could you please advise if they are correct.

Thanks Nigel,

your figures
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

Transfer FEE
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

LEPTOS figures
SAPA (sewerage) 2007- 16 = €1,081.95
Local Tax (Municipal Tax) 2007 - 15 = € 339.30
Property Tax 2007 - 2013 = € 884.20
Sub TOTAL = €2,305.45
then in addition € 430.00 General Agreement for Communal Fund Deposit
TOTAL €2,735.45
plus transfer fee €2,934.57

full cost to transfer = €5,670.02



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

Post by Nigel Howarth » 09 Feb 2016 13:34

Hi Barrie

The Property Transfer Fees are OK.

As for the Leptos figures, the only one I can check is the the Immovable Property Tax (€884.20). I expect this is lower than I calculated because some of the properties had not been completed when you took delivery in 2007. It's rather difficult to explain but Leptos would pay IPT on the complete development and if part of the development had not been completed, the value of the percentage relating to your property would have been lower (IYSWIM).

SAPA - I can't comment (I guess you're aware of the corruption scandal involving the former mayor)

The Local Tax looks reasonable at €37.70/year (I pay around €120/year for a property with a 1980 value of €60,000). Different councils have different rates and vary between 0.1% and 0.2% of a property's 1980 value.

I can't comment on the Communal Fund.

Regards,


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

Post by barrieshaw » 09 Feb 2016 16:43

Hi Nigel,
thanks for your reply.
I have no idea what went down with the former Mayor, what ever happened could it influence my payments for SAPA ?
is there a way I can check this figure of SAPA 1,081.95 ?
what is this Communal fund they mention ?

Thanks in anticipation.

Best Regards
Barrie



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

Post by Nigel Howarth » 09 Feb 2016 18:58

Hi Barrie

There is a big bribery & corruption scandal regarding SAPA - the former mayor, Savvas Vergas, is serving six years in jail. I don't know how you would be able to check the figures. Maybe the Paphos Sewerage Board.

The Communal Funds are to pay for the insurance, maintenance, cleaning and repair of the shared parts of the development and common utilities. These include entrance lobbies, stairwells, swimming pools, etc. (There should a mention of these in your sale agreement - or perhaps a separate agreement).

Regards,


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

Post by barrieshaw » 11 Feb 2016 12:58

Hi Nigel,
re communal fund, we pay quarterly maintainence for all the services you mention.

Hope to hear from you.

Best regards
Barrie



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

Post by Nigel Howarth » 11 Feb 2016 18:34

Dear Barrie

As you area already paying quarterly maintenance charges, I don't know why the developer is charging you - I suggest you talk with him.

Regards,


Nigel Howarth
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