"Notes" on title deed

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Zoom123
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"Notes" on title deed

Post by Zoom123 » 12 Feb 2019 18:24

Hello,

I am interested to buy a plot in Limassol.

On the title deed for this plot there is a Note at the bottom which states that the owner can not sell the plot until August 2021.

The estate agent assures me that this is not a problem, that we will make a contract and that the property will be transfered to me in 2021.

Obviously if I buy this property I will hire an independent lawyer and make a proper contract, but will this be enough to ensure that I will have no issues?

I really like this plot but at the same time I don't want any problems in the future. What is your advice?

Thank you!



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Re: "Notes" on title deed

Post by Nigel Howarth » 13 Feb 2019 09:54

Hi Zoom123 and welcome to the form.

I have not heard of this situation before, but at a guess it sounds as if a court has issued an interim order preventing the owner from transferring the property until 2021; a prohibition.

(You can read more about prohibitions on pages 50 and 56 of the Department of Lands & Survey's Citizen's Charter.)

I suggest you get a lawyer to check this out thoroughly before going ahead with the purchase. And you certainly should not hand over any money until the prohibition (if that's what it is) has been removed.

Regards,


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Pantheman
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Re: "Notes" on title deed

Post by Pantheman » 13 Feb 2019 10:28

Nigel,

A Prohibition is an order preventing a legal person from transferring a title, it does not put time frames on the title.
It is possible that the person acquired the plot from the state (as a refugee status) and usually the note would say '... cannot transfer, withing 5 years of plot registered to the owner.

Contracts are ok to a point, but there are no guarantees the plot will be transferred in 2021, what if the person dies? What if he is declared bankrupt? what if he divorces and his asset is part of any settlement, what if, what if.

If you want the plot so bad, ask to keep back a %age of the price, say 30% in your lawyers account until transfer made.

Otherwise there are too many variable that can go wrong. Additionally, if you wanted to do anything on the plot you need his permission and he has you over a barrel, would really need some cast iron agreements up front.

Good luck.


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Re: "Notes" on title deed

Post by Nigel Howarth » 13 Feb 2019 15:37

Pantheman wrote:
13 Feb 2019 10:28
A Prohibition is an order preventing a legal person from transferring a title, it does not put time frames on the title.
I thought it was strange - I've not hear of this before. But in the Citizen's Charter it says:

PROHIBITIONS (INTERIM ORDER)

Any Court before which an action for debt or damages is pending may by an interim order direct that the defendant in such action be restrained from alienating or charging with so much of the immovable property (standing registered in his name or for which he has by law a right to be registered) as in the opinion of the Court shall be sufficient to satisfy the applicant/plaintiff’s claim, in case he wins the case.

Such interim order shall remain in force for as long as the Court may decide or until the issue of a final judgement.


Very strange.

Regards,


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Zoom123
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Re: "Notes" on title deed

Post by Zoom123 » 13 Feb 2019 15:48

Thank you for your replies!

I assumed that this had something to do with the property being mortgaged and that such "notes" would appear in the title deeds of all mortgaged properties, but it seems that this isn't the case and it something even "worst" for me as a buyer?

I will certainly talk to a lawyer, I just need to understand the situation a bit better first. My understanding so far was that it would be OK to buy a property that is mortgaged if I follow the right steps, but from what you tell me I should probably stay away from this one because of the prohibition.



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Re: "Notes" on title deed

Post by Nigel Howarth » 13 Feb 2019 16:50

Hi Zoom123

As the prohibition results from an interim court order, there should be details of the judgement on-line and a lawyer should be able to find it. Do you have a copy of the deed?

Regards,


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Zoom123
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Re: "Notes" on title deed

Post by Zoom123 » 13 Feb 2019 17:40

Yes, I have a copy but the details of the owner are hidden.



Zoom123
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Re: "Notes" on title deed

Post by Zoom123 » 13 Feb 2019 19:31

Pantheman wrote:
13 Feb 2019 10:28
It is possible that the person acquired the plot from the state (as a refugee status) and usually the note would say '... cannot transfer, withing 5 years of plot registered to the owner.
It seems that this is the case according to the estate agent. The dates also match, since it is from 2016 to 2021, so 5 years as Pantheman said.

So is this a very risky case? I want this plot for my house, and if I buy it I would start building in 2020. Can a lawyer make a cast iron agreement that would protect me? I don't know if the seller will agree to keep back any significant amount.



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Re: "Notes" on title deed

Post by Pantheman » 13 Feb 2019 21:41

Zoom123 wrote:
13 Feb 2019 19:31
Pantheman wrote:
13 Feb 2019 10:28
It is possible that the person acquired the plot from the state (as a refugee status) and usually the note would say '... cannot transfer, withing 5 years of plot registered to the owner.
It seems that this is the case according to the estate agent. The dates also match, since it is from 2016 to 2021, so 5 years as Pantheman said.

So is this a very risky case? I want this plot for my house, and if I buy it I would start building in 2020. Can a lawyer make a cast iron agreement that would protect me? I don't know if the seller will agree to keep back any significant amount.
That is something your lawyer would need to tell you. If the seller is keen to sell then he would agree, because he is going to have the same problem with whomever he deals with.


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FSB Properties Ltd
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Zoom123
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Joined: 12 Feb 2019 18:11

Re: "Notes" on title deed

Post by Zoom123 » 15 Feb 2019 17:50

UPDATE

The title deed I was referring to earlier was issued in 2016. Now the estate agent has emailed me a new title deed issued in 2017 which has a different note which seems to be worst than the first one.

So, the note on the title deed that was issued in 2016 said:
Ο Δικαιοδόχος δεν δικαιούται να πωλήσει ανταλλάξει ή και άλλως διαθέσει το οικόπεδο και την κατοικία που βρίσκεται εντός αυτού πριν τις 30/06/2021

The Owner is not allowed to sell, exchange or otherwise make available the plot and the house within it before 30/06/2021

(*there is no house in the plot)

The note in the new title deed that was issued in 2017 says:
Το οικόπεδο μεταβιβάζεται κατ' εξαίρεση με τον όρο για μη αποξένωση του. Επιστολή Γεν. Διευθ. Υπ. Εσωτερικών με αρ. φακ. [...] ημερ. 20/01/2016

The plot is exceptionally transferred under the condition of non-alienation. Letter of Director-General of the Ministry of the Interior with file number [...] 20/01/2016
I now wonder if I should even bother with a lawyer as that "non-alienation" clause seems to make the transfer impossible at any time, not just until 2021 as it was the case in the first title deed.



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Re: "Notes" on title deed

Post by Nigel Howarth » 15 Feb 2019 19:33

Hi Zoom123

It certainly looks as if you'll never be able to own the land - better look for something else.

I don't know if Pan has any idea what this is all about?

Regards,


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Pantheman
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Re: "Notes" on title deed

Post by Pantheman » 15 Feb 2019 20:21

Nigel Howarth wrote:
15 Feb 2019 19:33
Hi Zoom123

It certainly looks as if you'll never be able to own the land - better look for something else.

I don't know if Pan has any idea what this is all about?

Regards,
For me, this is too much hassle and if the MoI has been involved anything you do may take a very loooooong time to settle.

Give it a miss for your own peace of mind, there are bound to be others you could look at. And tbh, why the hell is the agent trying to sell this land given these issues. I would also stay away from that estate agency as well, whomever the hell they are.

Just out of curiosity, if you were so interested, I know I would be, I would go to the land registry and ask them the reason for this, you just never know. I have not seen such a note before and would be interested to know. You don't need a lawyer, just take the title with you, walk in and tell them you are considering buying this plot, but for the note and could they explain why.

The only idea I have, apart from it being a refugee offering, it could also be prior owned Turkish Cypriot land, just guessing here.

Anyway, if you want it that bad go and ask. Failing that, just back off.

Good Luck.


For all your property needs, we offer Trust, Integrity, Honesty.
FSB Properties Ltd
Registered and Licensed Real Estate Company Co. Reg. No. 795, Lic. No. 250/E
Member of ETEK Registration No. A201999
https://fsbproperties.com

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