Local Search with form N.50 at the Department of Lands and Surveys

General questions & discussions on Cyprus property related matters
MarkyMark
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Local Search with form N.50 at the Department of Lands and Surveys

Post by MarkyMark » 12 Dec 2017 16:16

In reference to the Department of Lands and Surveys Form Type N.50 "Application for a Survey Certificate" it appears that this can be used to perform a 'local search' on a parcel of land i.e. a yet-to-be registered development of residential buildings, in order to obtain a comprehensive report of the title of the parcel of land including all contracts of sale, all mortgages, all memos, encumbrances, prohibitions etc etc.

I was informed recently by a Cyprus lawyer acting on behalf of a vendor of a house built on the said parcel land, that there was a contract of sale for the house (lodged with the land registry) between the vendor and the developer, but a title deed has yet to be issued pending various matters. Additionally, I was informed that there are three mortgage charges lodged against this parcel of land.

The Cyprus lawyer advised me that the land registry does not issue survey certificates or survey reports, but the land reg would grant only permission for a lawyer to view the title survey certificate whilst being present at the land registry. Please could somebody advise if it might be possible for me to obtain a title survey certificate from the Land Registry using form N.50 ?

Additionally, I was informed that if the contract of sale for the house (made between the current owner and the developer) were lodged with the land reg prior to the three mortgage charges being lodged against the parcel of land (upon which the house was built) with the land reg, then the three mortgage charges would not be applicable against the individual house/plot, even though i understand that the land reg has not divided the parcel of land into individual plots as yet. Would this be accurate information from the lawyer?



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Re: Local Search with form N.50 at the Department of Lands and Surveys

Post by Nigel Howarth » 12 Dec 2017 18:40

Hello MarkyMark and welcome to my property forum.

I published an article some years ago on how to obtain a Title Search. See New title search procedures in Cyprus. (Obviously they are not so new now.)

The vendor of the property can also get this for you.

The Land Registry fee is €20.00.

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MarkyMark
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Re: Local Search with form N.50 at the Department of Lands and Surveys

Post by MarkyMark » 12 Dec 2017 20:05

Thanks very much Nigel. Very useful information.

In this situation the vendor of the house is not the owner of the parcel of land on which the house was built.

The developer's company owns the parcel of land on which I would like to obtain a land reg comprehensive report of the title.

The developer might be uncooperative in signing the N.50's accompanying form 'CONFIRMATION OF INTENTION TO BUY PROPERTY'.

Could the solicitor, who's representing the vendor in the sale of the house, sign the 'CONFIRMATION OF INTENTION TO BUY PROPERTY' in order to obtain a land reg report on the parcel of land?



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Re: Local Search with form N.50 at the Department of Lands and Surveys

Post by Nigel Howarth » 12 Dec 2017 21:20

The house and the land on which it is built are inseparable in terms of title.

The vendor of the house does not own it. Until such time as the Title Deed is issued and its ownership has been transferred from the developer to the vendor the house and the land on which it is built is owned by the developer.

The vendor can get a N.50 search and this will show details of the whole parcel of land and all the together with all related claims (such as mortgages and the sale of all the dwellings built thereon).

The developer does not need to be involved. As the vendor has a contract of sale he can get the N.50 for you as described in my article.

Regards


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MarkyMark
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Re: Local Search with form N.50 at the Department of Lands and Surveys

Post by MarkyMark » 12 Dec 2017 23:02

Many thanks Nigel. I've asked the vendor if he can get the title information at the land reg using the N.50 and the contract of sale as per the procedure described.



MarkyMark
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Re: Local Search with form N.50 at the Department of Lands and Surveys

Post by MarkyMark » 19 Dec 2017 13:05

UPDATE:

The Larnaca land reg produced a certificate confirming that there are four mortgage encumbrances lodged against the development land parcel, two of which were lodged prior to the deposit of the original vendor's contract of sale for the house in which I'm interested, although one of the later two mortgages is an extension by the means of 'extra-borrowing' of an earlier mortgage. The good news is that the certificate lists each individual unit on the developer's parcel and the original purchaser(s).

Would each subdivided unit be allocated by committee a proportionate fraction of the total developer mortgage debt plus accrued interest charges against the developer's parcel upon issuance of title deeds?

Would the individual units' title deeds be issued to the developer or to each registered purchaser?



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Re: Local Search with form N.50 at the Department of Lands and Surveys

Post by Pantheman » 19 Dec 2017 15:09

MarkyMark wrote:
19 Dec 2017 13:05
The Larnaca land reg produced a certificate confirming that there are four mortgage encumbrances lodged against the development land parcel, two of which were lodged prior to the deposit of the original vendor's contract of sale for the house in which I'm interested,
The mortgages listed are not necessarily those of the developers. When someone take a mortgage to purchase a house this is shown as a mortgage. The down side of this search it that it does not tally the mortgage with which buyer.

Now, this is where it gets interesting. It is possible to have 2 mortgages listed prior to the contract of the house you are interested in, it doesn't mean that they belong to the developer nor does it mean that your house is encumbered by them, the 'trick' is to look at the amount and the date deposited.

Eg. if it is for a large amount and the date it was registered prior to the construction date then it is more likely to be the developers. If however if is for an amount that is commensurate with someone buying a property and the date is in line with other house sales then it is likely to be a home owners.

You lawyer could approach the developer and ask the question if these are his, and indeed ask for a signed declaration (I have such a document) to state that he has no mortgage on the said land.

You lawyer should know all these things if he knows his job however!!!!

Good luck


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Re: Local Search with form N.50 at the Department of Lands and Surveys

Post by Nigel Howarth » 19 Dec 2017 15:46

Hi Mark

When the Land Registry issues the Title Deed it will allocate the mortgages against properties whose purchase contracts were deposited after the mortgage was registered. (Note that the amount stated on the encumbrance is the amount of the original mortgage agreement not the current balance.)

Do you know if the original purchaser has applied for the Title Deeds as he's one of the estimated 70,000 'trapped buyers' ?

If you are still interested in buying this property you have two options:

1. Get the developer to repay the two mortgages (this may not be necessary if the original purchaser has applied for the deeds.)
2. You pay the mortgage debts to the bank and subtract whatever you've paid from the price you've agreed with the first purchaser.

As the Title Deed has not been issued you will need to use an 'assignment contract' that transfers the original purchaser's rights and obligations under his/her contract of sale to you.

Title Deeds will be issued in the name of the registered owner (i.e the developer). They will be re-issued in the name of the purchaser on payment of the Property Transfer Fees.

Personally, in your position, I'd look for another property.

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MarkyMark
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Re: Local Search with form N.50 at the Department of Lands and Surveys

Post by MarkyMark » 20 Dec 2017 13:22

Re FSB response:

The mortgages listed are not necessarily those of the developers. When someone take a mortgage to purchase a house this is shown as a mortgage. The down side of this search it that it does not tally the mortgage with which buyer.

The certificate lists the names of the purchasers in the registered contracts of sale rather than registered owners?

The listed mortgages on the certificate issued for the developer's land would have been secured against the developer's land?

Could a mortgage be secured against a property 'under-construction' or 'pending registration and separation' that does not have a title deed?

The developer's company, as the registered title holder of the land, may not be responsible for servicing and repaying a mortgage if the mortgagor is another entity, but the developer's land is still listed as the security for the mortgage and as such could be repossessed as collateral against the accrued mortgage debt by the mortgagee?



MarkyMark
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Re: Local Search with form N.50 at the Department of Lands and Surveys

Post by MarkyMark » 20 Dec 2017 14:01

Re Nigel's response:

According to Haviaras & Philippou L.L.C (hyperlink below) the trapped buyer's law is applicable on contracts (sale agreements) that have been submitted at the Lands Registry up until 31st December 2014.

http://www.mondaq.com/cyprus/x/433786/r ... rty+Buyers

Would the trapped buyer's law be applicable to me if I were to proceed with an 'assignment contract' that transfers the original purchaser's rights and obligations under her contract of sale to me or would this need to have been instigated or completed by the original purchaser?

The Law is applicable on contracts (sale agreements) that have been submitted at the Lands Registry up until 31st December 2014. The transfer of the Property to the Trapped Buyer may be conducted either proprio motu or on application. An application for transfer (the "Application") may be submitted by the Trapped Buyer, the seller, the mortgagee or the lender and has to be accompanied by the necessary supporting evidence. Any pending procedure under Companies Act and Bankruptcy Law is suspended until the full examination of the application which is submitted under the Law.



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Re: Local Search with form N.50 at the Department of Lands and Surveys

Post by Nigel Howarth » 20 Dec 2017 14:34

MarkyMark wrote:
20 Dec 2017 14:01
Would the trapped buyer's law be applicable to me if I were to proceed with an 'assignment contract' that transfers the original purchaser's rights and obligations under her contract of sale to me or would this need to have been instigated or completed by the original purchaser?
No - because your assignment contract would be deposited after 31st December 2014.

(I visited the Department of Lands & Surveys HQ in Nicosia and got how to apply from the horses mouth and wrote a long article on the subject - Applying for Title Deeds. I sent them the draft to approve before I published.)

The government are looking at ways to improve the law. So far nothing's been announced.

Regards,


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Pantheman
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Re: Local Search with form N.50 at the Department of Lands and Surveys

Post by Pantheman » 20 Dec 2017 15:11

Nigel Howarth wrote:
20 Dec 2017 14:34
MarkyMark wrote:
20 Dec 2017 14:01
Would the trapped buyer's law be applicable to me if I were to proceed with an 'assignment contract' that transfers the original purchaser's rights and obligations under her contract of sale to me or would this need to have been instigated or completed by the original purchaser?
No - because your assignment contract would be deposited after 31st December 2014.

(I visited the Department of Lands & Surveys HQ in Nicosia and got how to apply from the horses mouth and wrote a long article on the subject - Applying for Title Deeds. I sent them the draft to approve before I published.)

The government are looking at ways to improve the law. So far nothing's been announced.

Regards,
Nigel,

This is not how I understand it. The trapped buyers law is against the ORIGINAL contract already deposited prior to Dec 2014 and as such is in force. The assignment is a bolt on where the original rights have been assigned, so of the original owner with a deposited contract pre dec 2014, also assigns the right to apply under the trapped buyers law. And this is the system we have been working on.

Otherwise the land registry should not be accepting applications when an assignment contract has been written, but they clearly do. They can't have it both ways.

So I beg to differ on this.


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Re: Local Search with form N.50 at the Department of Lands and Surveys

Post by Pantheman » 20 Dec 2017 15:19

MarkyMark wrote:
20 Dec 2017 13:22
Re FSB response:

The mortgages listed are not necessarily those of the developers. When someone take a mortgage to purchase a house this is shown as a mortgage. The down side of this search it that it does not tally the mortgage with which buyer.

The certificate lists the names of the purchasers in the registered contracts of sale rather than registered owners?

The certificate lists the buyer (beneficial owner) of the property. We are talking house here, not land. In effect the contract puts an encumbrance on the house in your name.


The listed mortgages on the certificate issued for the developer's land would have been secured against the developer's land?

the listed mortgages are for the house and the land it sits on. The developer would have gone as a guarantor and so has allotted that portion of the land to the bank.

Could a mortgage be secured against a property 'under-construction' or 'pending registration and separation' that does not have a title deed?

Yes see my answer above

The developer's company, as the registered title holder of the land, may not be responsible for servicing and repaying a mortgage if the mortgagor is another entity, but the developer's land is still listed as the security for the mortgage and as such could be repossessed as collateral against the accrued mortgage debt by the mortgagee?

If the developer acts as a guarantor the bank will chase him in the case of default by the mortgagor. The mortgages are against that individual portion of the land and not everyone else's land. If the developer was to mortgage the whole plot BEFORE making sales then ALL the properties could be at risk if the developer had failed.


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Re: Local Search with form N.50 at the Department of Lands and Surveys

Post by Nigel Howarth » 20 Dec 2017 17:37

Pantheman wrote:
20 Dec 2017 15:11
The trapped buyers law is against the ORIGINAL contract already deposited prior to Dec 2014 and as such is in force. The assignment is a bolt on where the original rights have been assigned, so of the original owner with a deposited contract pre dec 2014, also assigns the right to apply under the trapped buyers law. And this is the system we have been working on.
I don't know what's happened with this. When I spoke with the DLS staff in Nicosia they said that the only prerequisite for filing an application is that a Contract of Sale or a vesting/assignment contact to purchase the property must have been deposited at the DLO in which the property is situated by 31st December 2014. (They agreed the wording of my article before I published.)

Maybe they're being more flexible?


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Re: Local Search with form N.50 at the Department of Lands and Surveys

Post by Nigel Howarth » 20 Dec 2017 18:46

Hi Mark

Just to explain the entries on the search certificate:

Λεπτομέρειες Πωληθέντος Αντικειμeνου (translation - details of sold object) shows information about a property that has been sold including the name(s) of those who bought it and how much they paid.

Μέμο (translation - memo) shows debts that have been lodged against the land by creditors (e.g Tax Department, Contractor, supplier, etc.)

Υποθήκη (translation mortgage) shows mortgages lodged against the land by a mortgager (typically a bank that loaned the money). These are usually shown at the end of the search certificate.
If this/these are small amounts it's likely that the registered owner (the developer) had to take out to enable the bank to recover one of the sold property if its buyer defaulted on their loan.
If these are large amounts it's more likely that the registered owner (the developer) borrowed money to fund the construction of the properties.

Although those who bought property may have taken bank loans to fund their purchase these will not be shown on the search certificate and even if they were, they wouldn't affect you.

Mortgages lodged after a contract to purchase a property was lodged will not affect that property. However I have heard of one case (a Greek friend from Athens) where the purchaser had to assure the court that he wasn't in collusion with the vendor to avoid paying the debt. (But I think this is very rare.)

Regards,


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