compensation for lost profit

Questions about selling property
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Wivre
Posts: 6
Joined: 07 Oct 2012 21:51

compensation for lost profit

Post by Wivre » 06 Oct 2016 23:18

Hello all,

Before I asking the questions that hopefully can be answered first some background info:

In 2001 I bought and payed in full a piece of land under the assumption that the Title Deeds would be available within reasonable time.
In the sale contract was agreed/stated:

That I should start building a house within 3 years (with regard to the title deeds that sounded reasonable to me at that time)
“Architectucal plans and construction to be undertaken by the Vendor at reasonable and fair costing figures.
Vendor undertakes to obtain the separate Title Deeds covering the property, as per division permit (which will be issued through the District Land Office)

However nothing happened and I refused to start making costs on a property that was not legally mine since I did not had the Title Deeds.
14 years later (2015) I received a notice for the transfer of Title Deeds on my property.

(Remember : When buying the property I was in my early 50’s, at this moment I am approaching my 70’s with all the accompanying problems . Obviously I don’t have the appetite to start building a house. I rather want to sell the land.)

Now here is the problem:
1) The developer states that I am in breach of my contractual obligations and transfer of the Title Deeds cannot proceed.
2) The developer is offering an opportunity to pay an amount that will compensate a part of the profit they would have normally received.

My questions are :
Is it correct that the transfer of the Title Deeds cannot proceed?
Is it correct to be charged for lost profit when it takes the developer 14 years to deliver the Title Deeds that make me the legal owner of the land?
Does anybody have an idea what would be a reasonable compensation ?



Nigel Howarth
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Re: compensation for lost profit

Post by Nigel Howarth » 07 Oct 2016 09:42

Hi Wivre and welcome to the forum.

You will need to have a lawyer look through your contract of sale to see if you're in breach.

But if your contract states that you must start building a house within 3 years of purchasing the land and you haven't I believe there's a good chance that you may be in breach - unless there's a caveat about having the deeds before building.

I will send you an email. If you can scan a copy of your agreement and send it to me I will be able to give you my thoughts. However I am not a lawyer and you need to have a professional opinion. The British High Commission publishes a list of lawyers and I'm sure that any one of them will be able to give you their opinion.

Regards,


Nigel Howarth
Independent information & advice for Cyprus property buyers
Contact Nigel Howarth
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Nigel Howarth
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Posts: 2499
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Location: Erimi, Limassol, Cyprus
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Re: compensation for lost profit

Post by Nigel Howarth » 07 Oct 2016 13:07

Hi Wivre

I've tried sending you an email, but there seems to be a problem at your end - I get a message 'recipient rejected'.

If you want to scan & send me a copy of your sale agreement, can you please contact me via http://www.news.cyprus-property-buyers.com/contact

Regards,


Nigel Howarth
Independent information & advice for Cyprus property buyers
Contact Nigel Howarth
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Wivre
Posts: 6
Joined: 07 Oct 2012 21:51

Re: compensation for lost profit

Post by Wivre » 08 Oct 2016 10:31

Hello Nigel,

Thanks for your involvement and quick reaction.

It looks like my old email adress is still active.
I tried to change it several times but no luck.

Sorry for that
Regards



Nigel Howarth
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Re: compensation for lost profit

Post by Nigel Howarth » 08 Oct 2016 20:11

Hello Wivre

Thank you for sending me your contract. It is the worst one that I have ever seen as its wording is totally in favour of the developer!

Points to note:

"6.1 The purchaser undertakes to build a house to the property hereby sold within 3 years from today."

You were contractual obliged to start building within 3 years regardless of whether the Title Deeds were available.

"8. Transferring of the title deed to the name of the purchaser shall be effected as soon as a separate title deed covering the property to be sold will be issued through the District Land Office and after the signing of the construction."

If you had signed the agreement you would have received your deeds.

However the developer provides no information on how much the property is going to cost you or any details about it - "6.3. The construction of the house will be undertaken by the Vendor at reasonable and fair costing figures of other similar constructions and buildings." (Who decides whether the costs are reasonable and fair?) This basically enables the developer to charge you whatever he wants and you have no recourse.

The contract doesn't give the area of the plot. (I have tried to find it on the Dept of Lands & Surveys website without success.)

If the developer is offering you compensation it seems that he is open to negotiation (he's probably aware that the contract is a load of rubbish).

I suggest that you get professional opinion on the matter from a lawyer. As I mentioned earlier, the British High Commission publishes a list of lawyers and I'm sure that any one of them will be able to help and negotiate with the develop for a fair and reasonable settlement.

Regards,


Nigel Howarth
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Wivre
Posts: 6
Joined: 07 Oct 2012 21:51

Re: compensation for lost profit

Post by Wivre » 08 Oct 2016 21:26

Thanks Nigel appreciate your swift opinion and remarks.

As to: The contract doesn't give the area of the plot. (I have tried to find it on the Dept of Lands & Surveys website without success.)

I have found out that it is: registration number is 1901, the Sheet/Plan is 26/54 and plot number is 173.

Regards



Wivre
Posts: 6
Joined: 07 Oct 2012 21:51

Re: compensation for lost profit

Post by Wivre » 11 Oct 2016 09:39

Hello Nigel,

As you advised I am now in the process of selecting a lawyer to give me his opinion in this case.

Just to prevent any misunderstandings I want to react to your previous reply to point "8:

Transferring of the title deed to the name of the purchaser shall be effected as soon as a separate title deed covering the property to be sold will be issued through the District Land Office and after the signing of the construction."

Where you stated: "If you had signed the agreement you would have received your deeds".

There has never been any agreement concerning building a house, nor have there been any discussions as to the kind of house, plan, materials, construction etc.

The developer (in my opinion) is trying to incorporate a house into the sale of the land.

Remember: I bought a piece of land nothing more nothing less, and for that I wanted the Title Deeds.


Regards
Wivre



Nigel Howarth
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Re: compensation for lost profit

Post by Nigel Howarth » 11 Oct 2016 11:33

Wivre wrote:As you advised I am now in the process of selecting a lawyer to give me his opinion in this case.

There has never been any agreement concerning building a house, nor have there been any discussions as to the kind of house, plan, materials, construction etc.
I misunderstood - I thought you'd been offered a contract to build the house. Hopefully a lawyer will be able to sort this out for you.

If you have to build a house I would suggest a very small house for a dog - a kennel. Should only cost you a few hundred Euro.

Cheers,


Nigel Howarth
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Wivre
Posts: 6
Joined: 07 Oct 2012 21:51

Re: compensation for lost profit

Post by Wivre » 11 Oct 2016 14:17

:-)) :-)) :-))
I will take your advice at heart.

Regards
Wivre



Wivre
Posts: 6
Joined: 07 Oct 2012 21:51

Re: compensation for lost profit

Post by Wivre » 14 Oct 2016 22:01

Hello,

In this dispute it can be of importance to know WHEN the land where my plot is part of was split and approved by the landregistry.

Is there any way for me to find out ?

Regards



Nigel Howarth
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Re: compensation for lost profit

Post by Nigel Howarth » 15 Oct 2016 19:29

Hi Wivre

The Land Registry should have details of all the permits and when they were approved.

Regards,


Nigel Howarth
Independent information & advice for Cyprus property buyers
Contact Nigel Howarth
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