Title Deed Question

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Bnevi1
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Joined: 18 Mar 2008 00:22

Title Deed Question

Post by Bnevi1 »

Hi Nigel,

Hope you are well.

I bought an apartment off plan some years ago. I took possession in 2005.

Recently, I sent the developer an e mail enquiring about the issue of the separate title deeds and today have received a reply. In this reply the developer states that

''The division permit has already been issued from the municipality and it will be submitted to the Land Registry within the week''.

Does this mean that the separate deed is now close to being issued?

Many thanks for your help

Brian
Nigel Howarth
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Re: Title Deed Question

Post by Nigel Howarth »

Hi Brian

I'm well thanks - off on holiday tomorrow for a few weeks.

Your at the last hurdle - once the Land Registry has the division permit (and assuming all the other information has been passed to them) they can start the process of issuing Title Deeds for the properties on the development.

But I wouldn't expect the Title Deeds to be issued for at least 12 months.

Cheers,
Nigel Howarth
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Bnevi1
Posts: 9
Joined: 18 Mar 2008 00:22

Re: Title Deed Question

Post by Bnevi1 »

Nigel,

Thanks for the prompt reply.

Enjoy your holiday.

Brian
Bnevi1
Posts: 9
Joined: 18 Mar 2008 00:22

Re: Title Deed Question

Post by Bnevi1 »

Hi Nigel,

Your estimate was pretty much spot on.

I have today received an e mail from my developer saying that the separate title deeds have been issued and will be available for transfer as from 1st September.

Could you give me a brief outline of what I need to do from here.

Once again thanks for all your help.

Brian
Nigel Howarth
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Re: Title Deed Question

Post by Nigel Howarth »

Hi Brian,

Believe it or not, I'm on holiday again in the UK catching up with old friends and the rellies.

There's not much you have to do apart from going to the Land Registry with the developer (and possibly your lawyer) to hand over the Property Transfer Fees. You'll need to take your passport with you to prove your identity + cash/cheque to pay the Land Registry.

Take a look at the 'Completion Process' section at http://www.cyprus-property-buyers.com/l ... ancing.htm for more information and to work out how much you'll need to pay, the Department of Land and Surveys has an on-line Property Transfer Fee calculator at http://www.moi.gov.cy/moi/dls/dls.nsf/d ... n?OpenForm

And once you get your Title Deeds, open a bottle of champagne to celebrate!

Regards,
Nigel Howarth
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Bnevi1
Posts: 9
Joined: 18 Mar 2008 00:22

Re: Title Deed Question

Post by Bnevi1 »

Nigel,

Once again thank you

Brian
Bnevi1
Posts: 9
Joined: 18 Mar 2008 00:22

Re: Title Deed Question

Post by Bnevi1 »

Hi Nigel

I'm just writing once again to thank you for your advice.........not just in relation to this thread but also for everything you have contributed on your forum and elsewhere

I have just purchased the deeds for another property I bought off plan. The knowledge I gained from you made the whole process from signing the contract of sale to receiving the deeds as painless as possible. If I ever have the good fortune to meet you, then the Keo is on me.

Thank you

Brian
Nigel Howarth
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Re: Title Deed Question

Post by Nigel Howarth »

Bnevi1 wrote:I'm just writing once again to thank you for your advice.........not just in relation to this thread but also for everything you have contributed on your forum and elsewhere
You're welcome Brian - I'm pleased to have been of help (and I look forward to that Keo).

Best regards,
Nigel Howarth
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Antonios

Re: Title Deed Question

Post by Antonios »

Hello Nigel,

We live on a small complex of 4 houses but only ours has a mortgage CHF. Our developer phoned me today to say that our deeds are in the last stages and as we have a mortgage on the property we need to go to his office to sign some papers, I think he said to separate our house from the others, then off to the bank for them to be signed there. Is this correct? I am just a bit worried of signing the papers as we don't fully understand everything to do with the deeds and we can't afford to buy them either, the money we did have saved has gone towards the extra on the CHF as our payments have now doubled.
We have the house up for sale but no offers yet.

Kind regards Jan.
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Re: Title Deed Question

Post by Nigel Howarth »

Hello Jan

I don't know what these papers may be - I think it best if you wait to sign them until you're at the bank where they will be able to give you a translation - or if you can get someone else to translate them for you.

They may have something to do with your mortgage (actually it's a home loan). When the Title Deed is issued and the property is registered in your name, the bank will convert your loan to a mortgage and it will be registered at the Land Registry as a claim against the property.

There is a fee to pay for registering the mortgage - 1% of the amount advanced (but this may have been included in the amount advanced - you'll need to check with the bank).

As for your CHF mortgage, have you tried negotiating with the bank? If you like, I can send you contact details for those who are helping people with their CHF mortgage issues.

Regards,
Nigel Howarth
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Antonios

Re: Title Deed Question

Post by Antonios »

Nigel Howarth wrote:Hello Jan

I don't know what these papers may be - I think it best if you wait to sign them until you're at the bank where they will be able to give you a translation - or if you can get someone else to translate them for you.

They may have something to do with your mortgage (actually it's a home loan). When the Title Deed is issued and the property is registered in your name, the bank will convert your loan to a mortgage and it will be registered at the Land Registry as a claim against the property.

There is a fee to pay for registering the mortgage - 1% of the amount advanced (but this may have been included in the amount advanced - you'll need to check with the bank).

As for your CHF mortgage, have you tried negotiating with the bank? If you like, I can send you contact details for those who are helping people with their CHF mortgage issues.

Regards,


Thank you Nigel,

You were right and the bank confirmed what the developer had explained to us and the papers have been signed by us and now the developer has to get more paperwork from the land registry for them to be signed by the bank, they also had to be signed by a certified person which we had to pay for.
The developer also said we now have to pay the IPT that he has been paying, he said back in 2006 when we purchased the property it was 4% then went to 8% and has now risen to 19% this year, is this correct as he said for 2013 alone it has cost him for our villa 1200 euros.
He also mentioned that he pays a higher rate because he has many properties, so is it right that we have to pay at this rate as well, he is sending out a letter with the breakdown of the years on it so we shall know more then but our villa cost £153.500 CY in 2006 we still have to pay the last £500CY that was in the contract of sale but he says with that changed into euros we owe him roughly 5000 euros, he also said if its not paid by the end of this year all next years will be added in January at 19% so the sooner its paid the better for us.

I would appreciate what you think of this Nigel, if it is correct then we had better start saving !!!!!


Kind regards Jan.
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Re: Title Deed Question

Post by Nigel Howarth »

Hi Jan,

Yes - you will need to repay the developer the Immovable Property Tax he has paid on your behalf (this will be one of your obligations in your sale agreement).

Immovable Property Tax is based on the 1980 value of a property (not its market value) and this will be assessed by the Land Registry and shown on the property's Title Deed.

The rates you quoted are 10 times too high. They are 0.4%, 0.8% and 1.9% - and as I said above they are calculated on the 1980 value of the property.

The reason they are so high is that the developer owns property whose total 1980 value exceeds €3,000,000.

On the bright side you can reclaim any legitimate overpayments of IPT from the Inland Revenue, but you will need the developer to help you complete the forms - for more information see http://www.cyprus-property-buyers.com/law/tax.htm

When the deeds are issued, you'll also need to pay the Property Transfer Fees, which is the Cyprus equivalent of the Stamp Duty Land Tax (SDLT) that you pay in the UK when a property changes hands. Property Transfer Fees are based on the market value of a property at its date of sale and the is an online calculator at http://www.moi.gov.cy/moi/dls/dls.nsf/d ... n?openform that will give you some idea of what you will be asked to pay.

If you want to send me the invoices from your developer, I'll check them for you.

Regards,
Nigel Howarth
Independent information & advice for Cyprus property buyers
Contact Nigel Howarth
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Antonios

Re: Title Deed Question

Post by Antonios »

Nigel Howarth wrote:Hi Jan,

Yes - you will need to repay the developer the Immovable Property Tax he has paid on your behalf (this will be one of your obligations in your sale agreement).

Immovable Property Tax is based on the 1980 value of a property (not its market value) and this will be assessed by the Land Registry and shown on the property's Title Deed.

The rates you quoted are 10 times too high. They are 0.4%, 0.8% and 1.9% - and as I said above they are calculated on the 1980 value of the property.

The reason they are so high is that the developer owns property whose total 1980 value exceeds €3,000,000.

On the bright side you can reclaim any legitimate overpayments of IPT from the Inland Revenue, but you will need the developer to help you complete the forms - for more information see http://www.cyprus-property-buyers.com/law/tax.htm

When the deeds are issued, you'll also need to pay the Property Transfer Fees, which is the Cyprus equivalent of the Stamp Duty Land Tax (SDLT) that you pay in the UK when a property changes hands. Property Transfer Fees are based on the market value of a property at its date of sale and the is an online calculator at http://www.moi.gov.cy/moi/dls/dls.nsf/d ... n?openform that will give you some idea of what you will be asked to pay.

If you want to send me the invoices from your developer, I'll check them for you.

Regards,


Thank you for your help Nigel, with so many stories going around its hard to know what to believe, so it is a great help knowing you are here with the answers.

When the letter arrives for the IPT I shall send it on to you, at least we know we shall be paying the correct amount.

The developer definitely said 4, 8 and 19% but we wondered if it was his way of translating so it will be interesting to see.


Kind regards Jan.
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