Cyprus Property Forum for Buyers, Sellers & Investors

Court Date in Paphos Sept 27th Alpha Bank Vs Me....Oct 3rd Me Vs CHL Enterprises Ltd.

Hi Everybody,
Just a Heads Up that After nearly 7 years, I have Court date( actual Hearing) against. The Developer and Alpha Bank.
I signed Off Plan to purchase land and have 20 studios build in Pagie in Oct 2004. Completion date was to be Dec 2006.
I have paid my deposit and legal fees (£171.200). To obtain this deposit I remortgaged in the UK. So I am also paying my new mortgage in uk.
I arranged a 12 month deferred mortgage (euro) for 12 months and was going to sell on before completion.
By Jan 2006 the developer was into £5000 cyp a month late completion fees to me.
March 2006... Received phone to state properties are 75% complete and to ask my back to release monies etc. I immeadiatley flew out to Cyprus only to find that the units were not even 50% built.....I contacted the bank, but they had already released more funds to the Developer!!!. This was based on a Valuation that was completed by a Bank approved surveyor and of the banks choosing.
I just flipped.....I have not ( at the approval of my solicitor) paid any further funds to the Bank.
I informed the Bank that it would appear that someone had made a serious error... As the properties were far less than 75% complete and it would appear that the Bank had not been diligent prior to releasing almost £400,000. also that the Contract with the Developer was now Null and Void due to the Developer being in Breach of Contract.. By not completing or paying late completion fees on time.(to date over £400'000).
It would have been far easier if the Bank had persued the Developer Direct.(which we all know, they simply will not do) now the bank is peruseing Both of us. Also at that time, I had TWO purchasers for the whole development which at over 35% margin. In fact one company paid to my agent over £1000'000deposit. This had to be returned when no completion date could e guaranteed.
I am lead to believe that the properties Still remain uncompleted!
I am sueing the Devloper and the Bank is suing both ME and the developer..I am counter sueing the Bank for Lack of Due Diligence.

I just pray that Justice will prevail and I win. otherwise at almost 60....I lose everything including my family home.
I will of course report the out come on this site
Warm regards to you all
GM

Good luck to you. I hope you ge a satisfactory result. Its high time some of these developers and banks took ome responsibilty for their actions.
Waiting fo you good result.

Hi Gordon,

I echo Pan's sentiments - I hope these people get what they deserve!

I don't know if you follow my Cyprus Property News - there's an article about jurisdiction that may be of interest to you - UK jurisdiction granted in High Court ruling.

There is some confusion as to the scope of the ruling which I hope to have cleared up later this week.

Regards,

Well after spending over £1200 to travel to my court hearing.....the BOTH get CANCELLED.

The Friday (just 5 days before 1st hearing) the Alpha Bank Vs me, is cancelled due to a new Judge being appointed. My Lawyer met with the Judge together with lawyers of Alpha Bank and CHL. The Judge states this this case should never (after 6 years of waiting) go to Court.
(just look at all of my legal fees!)......Then whilst in Cyprus the 2nd case is cancelled!!!

My Lawyer is even more confident that. We Will win this case.

Judge has order all lawyers to meet on Oct 26th and asked all parties to agree a settlement..

I await with a empty wallet and Baited Breath..Good Luck to all in Cyprus property deals

Regards Gordon

I hope that you win your case when it's eventually heard Gordon,

There were several reports last year of the Alpha Bank releasing money to a Paphos-based developer too early - this was reported in BBC program as part of a larger property investment scheme that had gone wrong.

The people involved are also putting up a fight against the bank.

Regards,