Mortgage Issues/Sales Agreements, Uncle Tom Cobbley and all.
Posted: 05 Apr 2012 23:11
Hi Louise, Any advice or comment would be well received believe me.
2 years ago I agreed to purchase via a British based agent, a new build, 2 bed apartment in an inland village in the Paphos region. I was very hesitant in signing the paperwork originally but eventually I was persuaded to sign. (My brother in law and some other people I know had also bought on the same development via the same agent.)
To cut a very long story short the property is due to be completed in May 2012 but I have now told the solicitor, (who refuses to answer my mails now by the way) and the bank that I do not intend to continue with the purchase. I reached this decision after an inspection visit last year when I was both disappointed with the build quality and also given some mortgage repayment details by the developer's representative. These bore no resemblance to what I was expecting the mortgage to be. It turns out that the overall mortgage (in CHFs) is actually for more than the original purchase price or even in my opinion what the property is worth.
Both the lawyer and the developer also claim to have had no deposit money from my agent who has since ceased trading. They both refuse to answer simple questions, for example why there are 2 sales agreements for the purchase, one of which lists a deposit payment, which I HAVE paid and a list of further deposit instalments, which are meant to have been paid during the build to make up the rest of the deposit. These have never been paid by me. I assume that either the lawyer or the developer must have told the bank that I have made these payments in order for them to obtain further funds during the build for some reason. I also have a copy of a mail informing me not to let the bank know about the second Sales Agreement which lists a number of payments which will not be paid! There are other aspects of the sale that have now changed. For example, where the developer was due to make a payment back to me on completion, (€16k) but it now turns out he claims he intends to use this to subsidise my repayments for a few months instead of the lump sum I and others were expecting. Sadly I have no faith that he will stay trading for long enough to make these subsidies though.
I believe I, and others, have been missold these properties, (I later found out that the lawyer is not only the developer's/builder/vendor's legal consultant but is also the wife of one of the directors). I have written to the bank to freeze my accounts as there are still untouched funds in the loan account. I have collated a dossier of evidence, mails, copies of agreements etc.
What I would really like to know is, if I do not sign to accept this property on completion, can the bank still pursue me for payment of a mortgage I believe was obtained under false pretences and what do I do about revoking the lawyer as my Power of Attorney?
Any info would be appreciated. I dont yet have another legal representative to take up my case should I need to pursue this in court but needless to say you will be top of my list if and when I need to.
Many thanks
Malc.
2 years ago I agreed to purchase via a British based agent, a new build, 2 bed apartment in an inland village in the Paphos region. I was very hesitant in signing the paperwork originally but eventually I was persuaded to sign. (My brother in law and some other people I know had also bought on the same development via the same agent.)
To cut a very long story short the property is due to be completed in May 2012 but I have now told the solicitor, (who refuses to answer my mails now by the way) and the bank that I do not intend to continue with the purchase. I reached this decision after an inspection visit last year when I was both disappointed with the build quality and also given some mortgage repayment details by the developer's representative. These bore no resemblance to what I was expecting the mortgage to be. It turns out that the overall mortgage (in CHFs) is actually for more than the original purchase price or even in my opinion what the property is worth.
Both the lawyer and the developer also claim to have had no deposit money from my agent who has since ceased trading. They both refuse to answer simple questions, for example why there are 2 sales agreements for the purchase, one of which lists a deposit payment, which I HAVE paid and a list of further deposit instalments, which are meant to have been paid during the build to make up the rest of the deposit. These have never been paid by me. I assume that either the lawyer or the developer must have told the bank that I have made these payments in order for them to obtain further funds during the build for some reason. I also have a copy of a mail informing me not to let the bank know about the second Sales Agreement which lists a number of payments which will not be paid! There are other aspects of the sale that have now changed. For example, where the developer was due to make a payment back to me on completion, (€16k) but it now turns out he claims he intends to use this to subsidise my repayments for a few months instead of the lump sum I and others were expecting. Sadly I have no faith that he will stay trading for long enough to make these subsidies though.
I believe I, and others, have been missold these properties, (I later found out that the lawyer is not only the developer's/builder/vendor's legal consultant but is also the wife of one of the directors). I have written to the bank to freeze my accounts as there are still untouched funds in the loan account. I have collated a dossier of evidence, mails, copies of agreements etc.
What I would really like to know is, if I do not sign to accept this property on completion, can the bank still pursue me for payment of a mortgage I believe was obtained under false pretences and what do I do about revoking the lawyer as my Power of Attorney?
Any info would be appreciated. I dont yet have another legal representative to take up my case should I need to pursue this in court but needless to say you will be top of my list if and when I need to.
Many thanks
Malc.