Cyprus Property Forum for Buyers, Sellers & Investors

hello,

I have an apartment in paphos, until now the title deeds have not been available to us,
I had an email from my solicitor recently advising me that the case for the issuance for my title deeds was with the land registry.

Questions.
1) is there an online site that I can track the title deed progress, I have the AX number.
2) do I have to buy the title deeds straight away, as I understand it once I own the deeds I am responsible for payment of the immovable property tax ( or did I have to own them at a specific date)
3) if I don't own them before the November 15th date, can the developer reclaim the amount paid on this tax from me when I do buy the deeds. ?

Please advise,

Thanks

Paul.

Hello Paul and welcome to my forum.

It's good to hear that your Title Deeds are progressing, hopefully you will not have to wait too much longer.

Currently there is no way you can track progress of the Title Deed issuance via the Internet (you have to visit the District Lands Office and enquire).

Title Deeds cost a few cents, what you need to pay is the Property Transfer Fees - a government tax and the local equivalent of the Stamp Duty Land Tax (SDLT) that you pay in the UK. (Note that you will not own the property until you have paid the Property Transfer Fees at which time the property will be registered in your name and you will receive its Title Deeds bearing your name).

Until such time as you pay the Property Transfer Fees, its present registered owner (most likely the developer from whom you bought it) will be responsible for paying Immovable Property Tax (IPT) - and he will expect you to reimburse him the tax he has paid on your behalf (this will almost certainly be a condition stated in your sale agreement).

What the 'good' developers do is submit IPT returns to the Inland Revenue each year and provide their buyers with records of the amount paid as IPT and a certificate showing the rate of IPT applicable to the property. It is important to note that the buyer may be able to claim back part or the entire amount paid once they have paid the Property Transfer Fees and become the property's owner.

The 'bad' developers do not submit IPT returns each year as they should and wait until the Title Deeds have been issued before paying the tax they owe. Because of the delay in making their payment, the Inland Revenue will impose a fine on the developer, who will then try pass this fine on to those who have bought property (often using the threat of withholding Title Deeds to elicit payment)!

Another trick played by the 'bad' developers is to calculate the IPT owed by their buyers using numbers that bear no relation to what they should be charging.

Here are a couple of articles that explain the IPT 'scams' and how to deal with them:

Cyprus Immovable Property Tax law

Immovable property tax & fraudulent practices

The tax is payable by those whose who have property registered in their name on 1st January - so for 2013, you developer will be responsible for paying - and he will expect to be reimbursed by you.

Regards,