Title deeds are going to be ready!

[dobiemum]

Hi Everyone,

I have spoken to you before Nigel but i forgot my log in details, so have had to re-register. Just a question you may be able to answer for me. A couple of weeks ago we heard a rumour that our builder was in difficulties and possibly gone bust, and that he had a mortgage on the development, but there is nothing on any forums or websites etc... adn rumours we know are rife. Much to our surprise we have just received an e mail/ letter from they to say our title deeds should be ready in December (Great news!), when they are ready we have to purchase them within 2 months! Is this correct that you have to purchase them within this time scale? or do i smell a rat? the property is an apartment don't know if this makes a difference.

I look forward to hearing your thoughts.

Kind regards

Lizzie

[Nigel Howarth]

Hi Lizzie,

The system works like this. When you buy a property, you deposit your Contract of Sale at the Land Registry for what is known as Specific Performance.

This deposit of the contract creates what is known as an ‘encumbrance’ against the property which prevents the vendor changing his mind about the sale, upping the price, or selling the property to someone else.

If the Title Deed to the property becomes available, you have six months to pay the Property Transfer Fees to have ownership of the property transferred to your name. It could be that in your Contract of Sale it says 2 months, in which case that 2 months will override the ‘default’ six months.

If you fail to transfer the property to your name within the specified time, although your contract of sale remains valid (so you will not lose the property) your ability to seek ‘Specific Performance’ will lapse, and you could be into lengthy legal proceedings to sort things out.

(‘Specific Performance’ is a quick way to get a court judgement if the vendor refuses to transfer the property to your name).

You also need to bear in mind that if you do not get the property transferred to your name in the specified time period, the vendor will continue to pay Immovable Property Tax. Obviously, he will not be pleased about this and will possibly make things difficult for you. (You could also be in breach of your contract – but without seeing it, I cannot be sure).

The best thing you can do is to get yourself down to the Land Registry as soon as the deeds are available and pay the Property Transfer Fees.

If you want to know what your Property Transfer Fees are likely to be, the Department of Lands and Surveys has an on-line calculator at http://www.moi.gov.cy/moi/dls/dls.nsf/d ... n?OpenForm

Regards,

[dobiemum]

Hi Nigel,

As ever your help is invaluable, we shall check the contract, and pay as soon as we are informed the deeds are ready, i am presuming we can use a solicitor to act on our behalf if we cannot be there in person as a power of attorney.

Kind regards

Lizzie

[Nigel Howarth]

You're welcome Lizzie

Yes, you can give Power of Attorney to a lawyer to undertake the transfer on your behalf. Just make sure the PoA only enables the lawyer to transfer title to you.

Regards,

[quinta]

When you give power of attorney to a Cyprus Lawyer and pay his bill in full does that end the contract. We have taken delivery of the apartment and mortgage is in place.

Quinta

You're welcome Lizzie

Yes, you can give Power of Attorney to a lawyer to undertake the transfer on your behalf. Just make sure the PoA only enables the lawyer to transfer title to you.

Regards,

[Nigel Howarth]

When you give power of attorney to a Cyprus Lawyer and pay his bill in full does that end the contract.

If you are talking about a contract with your lawyer, that all depends on what the Power of Attorney document says.

If you are talking about your contract of sale to purchase the property, I doubt it - as that contract will remain in force until such time as you become the registered owner of the property.

Regards,