Cyprus Property Forum for Buyers, Sellers & Investors

I have recently received my invoice from my solicitor, for transferring my property's deeds into my name .
Developers invoice as follows (1980 value e12,000)
one bed apartment, chloraka paphos.
procession taken NOV 30th 2004

1. property tax. e 708.00
2. Immovable tax . e 158.05
3.Sewage board. e 488.00
4. Administration. e 500.00
5. stamp duty. e 108.50
6. Outstanding Balance on contract. e 0.00
7. Common Services.
8. Letter of guarantee. e 0.00
9 Interest . 505.89

10. amount payable to land registry (approximate Value 70,052.66) @3pc = e 2101.50

In addition to this a AGREED bill for solicitor . 500 cyp + VAT ( e 854+153) e 1007


On querying this with my solicitor
Item 1 and 2 . on the breakdown came to e 660. ( not 708 and 158.05)
and I have paid to chloraka Municipal each sept- nov about e172 Pa (if this is related in any way)

I am still querying item 3 , because MY balance at paphos sewage board after making payments myself every year is
e 0.00 for my property.

Item 4 .(administration) after querying this my solicitor says after GOOD WILL will reduce to e 200 instead of 500. I think this should be NOTHING

item 5. stamp duty as not been query red by me I dont know if right are wrong.

Ietm 6. OK

item 7. Common Services . I have been in dispute since 2006 and collated photograph album of the development showing it at times, horrendous ands filthy. including the filthy pool, no lights etc. etc. the communal service charges are paid to third party company with a similar name to the developer. I got that fed up of complaining that I stopped making payments to this company. But being cyprus I will end up probably having to pay up in the end.

Item 8. OK

Item 9 interest. I have queried this and as a gesture of GOOD FAITH this time the developer will reduce this down to e100 from 505.89. i think it should be NOTHING.

Item 10 Land registry I think this is TOO high as i have got Two valuations and both state, ask e63000 with an hope of getting e around 60,000 . though I assume this could be negotiated down at time of transfer with land registry. AM I
correct.

I am in the process of trying to sell my property and I could clear the rightful amounts prior to sale . But I'm getting nowhere. Any advice would be welcome on my predicament. And COULD I settle the RIGHTFUL amounts at time of completion . If am lucky enough to sell.

Regards

any comments welcome

graham

Hi Graham,

1. The Immovable Property Tax amount, €708.00, is correct (assuming your developer is one of the larger ones and paying IPT at the top rate. (The revised calculation means that you do not have to pay the €48 for 2004.)

You will be able to submit a claim to recover all the Immovable Property Tax once you have paid the Property Transfer Fees - and assuming your developer cooperates.

2. Immovable Tax will have been paid to the local Community/Municipality - this has been removed on the revised calculation as it looks as if you may have paid this yourself.

3. Sewerage charges if you've aid them yourself - no need to pay them again.

4. Administration - I guess these are the lawyers costs for handling the work?

5. Stamp Duty? (possibly the stamp duty on your contract of sale. How much did you pay for the property?)

6. Interest? Interest on what?

10. Property Transfer Fees are based on the assessed market value of a property at its date of purchase - plug the price you paid into the Department of Lands and Surveys on-line calculator at http://www.moi.gov.cy/moi/dls/dls.nsf/d ... n?openform to get an estimate. You can contest the transfer fees by getting valuations from accredited valuers (but based on the information you posted, the cost of the valuation will be more than any saving you may make.)

Regards,

Nigel

Nigel Howarth wrote:Hi Graham,

1. The Immovable Property Tax amount, €708.00, is correct (assuming your developer is one of the larger ones and paying IPT at the top rate. (The revised calculation means that you do not have to pay the €48 for 2004.)

You will be able to submit a claim to recover all the Immovable Property Tax once you have paid the Property Transfer Fees - and assuming your developer cooperates.

2. Immovable Tax will have been paid to the local Community/Municipality - this has been removed on the revised calculation as it looks as if you may have paid this yourself.

3. Sewerage charges if you've aid them yourself - no need to pay them again.

4. Administration - I guess these are the lawyers costs for handling the work?

5. Stamp Duty? (possibly the stamp duty on your contract of sale. How much did you pay for the property?)

6. Interest? Interest on what?

10. Property Transfer Fees are based on the assessed market value of a property at its date of purchase - plug the price you paid into the Department of Lands and Surveys on-line calculator at http://www.moi.gov.cy/moi/dls/dls.nsf/d ... n?openform to get an estimate. You can contest the transfer fees by getting valuations from accredited valuers (but based on the information you posted, the cost of the valuation will be more than any saving you may make.)

Regards,

Nigel

Thanks Nigel this is very helpful.



Item 10. I paid 41000 cyp x 1.71 = 71100 euro so i think that correct, now, on the transfer tax front

Also 71100 e is the stamp duty of e 108.50 correct ?

Item. 4 is a developer administration cost, not a solicitor cost,and is on the developers invoice. The solicitors agreed costs are given separately, - so like the interest from the developer it sounds like another ERROR.

Item 7 , Is the payment of upto date communal service charges (thats in dispute), to a third party, although connected, a condition of before obtaining the title.?

And can this ALL be done at completion of the Sale of the property (SAY as a condition of sale )- if I and the future buying party agree)

many thanks

graham

Hi Graham,

The make the stamp duty €105. (This is based on the 2011 rates, which are the earliest I have - 0.15% on the first €170.860).

The developer's administration cost should not be included (but check your contract of sale). The costs involved in getting the deed issued are a business expense.

You can get the deeds even though you have not paid the communal charges.

Completion of a sale occurs when the deeds for the property become available for transfer, but you will not be able to complete the transfer until outstanding charges & property transfer fees have been paid.

Regards,

Nigel Howarth wrote:Hi Graham,

The make the stamp duty €105. (This is based on the 2011 rates, which are the earliest I have - 0.15% on the first €170.860).

The developer's administration cost should not be included (but check your contract of sale). The costs involved in getting the deed issued are a business expense.

You can get the deeds even though you have not paid the communal charges.

Completion of a sale occurs when the deeds for the property become available for transfer, but you will not be able to complete the transfer until outstanding charges & property transfer fees have been paid.

Regards,

Many thanks nigel for the rapid response and help

A Great source of information, as always.

best wishes

graham