Purchase via Assignment Contract ... yes or no?

So think we have now found our new forever home in Liopetri...but it doesn't come without its problems!! The property was originally bought off plan in 2005 and the vendors are going through the Trapped Buyers process.  Currently the property has been issued its separate title deed (but in the developers name). Our lawyer is concerned that the land deeds appear to have a mortgage regi

stered, but the vendors lawyer's draft assignment contract states that all encumbrances and mortgages will be cleared once the AEA is completed. So my question is, how likely is it for the deeds to be 'cleaned' by the AEA process?

@Sam&Bob personally i wouldnt touch it if the seller doesnt already have the deeds, as the deeds are the only bit of paper you have to say you own it. If there are any problems in the future and you don't have your deeds it can be an expensive headache! Especially if its on a complex.

@Samsam6 yeah we're definitely being cautious but have been advised by their lawyer that the title deed transfer to their name is well underway (deeds issued June 2022 and currently in the objections phase). We're speaking with our lawyer next week to get her advice.  We are being told that the transfer shouldn't be an issue...but would be interested to hear if anyone else has gone through the same process

All i can tell you is we have spoken to many people that have said its taken years, sometimes 10 years to get there title deeds. We were advised not to buy anything without them. Maybe you could just slow the process up until they prove they have them in there name.

We have been waiting eighteen years for our title deeds. Forget it, it will be endless problems and enormous expenses. I'd suggest to find another home with deeds. And peace of mind.

Wouldnt touch it with a barge pole ...trust your instincts not a sellers lawyer ...

So many people caught in that entrapped buyers scenarios... Took.4-5yrs to sort my mates out ....still no deeds ....and was very expensive ...

Even more sticky if still in developer name... Is that developer still operating...many Devs went bust owing millions never being traced to settle debts and finishing projects..... Even worse is you may buy the property and never get to owning the land it sits on ....

Be very very very wary ..and am sorry that you are in this situation..

Good luck

If the price you are paying reflects the uncertainty then you should be getting a bargain!

I would suggest that if you approach it with the belief that you will never be able to sell it and you are ok with that, it could work.

@Armoukid indeed the price should definitely reflect the risk.....

Indeed should you approach it with the belief that you will never be able to sell it and or take a massive hit in resale ... But if you are ever in a position to be forced to sell.... (who knows what's round the corner).

I admit to having thought about this a lot.... But my belt and braces lifebelt parachute and lanyard attitude would never let me do it... Bottomline for me is the lawyers concern ....

But Good luck to you Sam and Bob in whatever you decide... Its is your call and you stand or fall by your own decisions ... If you are both happy to proceed then go for it. . you never know it may be the best decision you ever make.

@Toon ah yes, thanks for this Toon. We don't plan on ever moving again so resale isn't an issue for us. The vendors started the Trapped Buyers process in 2015 and the separate deeds have been issued to the developer in Jun 2022...so know it could yet be some while yet for transfer to our names! Again the vendor has been upfront about everything and price (in our opinion) does reflect this.  From their original purchase in 2005, the price is only around €40k more. We, too, are not generally risk takers but we are ever hopeful that all will be resolved....ev

entually (lol!).

Good luck

@Sam&Bob some further thoughts

What exactly are the encumbrances that prevent the transfer of deeds to you am assuming financial ones and not physical incomplete works

If not or if it's both is the property on a development that is incomplete if so what work is outstanding. What would it cost to complete. The property may be complete but the roads servicing it and lighting may not be... Are they deemed private roads.

As I understand it the developer has now got deeds in his name. So he owns the property.

The current vendor is in the entrapped buyers mechanism I assume it was maybe bought with a Swiss franc mortgage and the bank involved is in negotiations for settlement maybe even with a third party company who may be buying or has bought the outstanding debt at a knock down price..... that alone could take years to settle especially if any of the parties are playing hardball... I say this as a close friend went through this and the valuation for settlement kept going up and up and eventually stopped at a level €15-20k more than original valuation at start of entrapped buyers process.. so beware the longer it goes on the worse it gets for vendor.... but benefits the bank or buyer of the debt.... 

Be sure to get a legally completed and signed waiver document stating that no further claims can be lodged against the property at a later date....

Hi Toon....yes it's definitely a complicated one. Firstly there's a prohibition as green space has shortfall but residents on the development have resubmitted plans to correct this (at their expense) so as to remove this prohibition.  Secondly there's a developer mortgage which pre-dates the sales contract lodged with Land Registry and this is our main concern. Our lawyer advises that if a waiver exists, then all should be OK, as all other memos and mortgages after the original sales date should be dealt with via the Trapped Buyers process. Again we're assuming that the pre-sales mortgage was for the whole development site (16 individual properties) so if the interested party wishes to keep their vested interest, then we guess that to remove this encumbrance we'd need to settle our element of the debt (but waiting to speak to our lawyer to clarify). As yet no money has been paid by us, nor anything signed. However the vendors lawyer's draft Assignment Agreement has a clause stating that prior to exchange, all encumbrances and mortgages will be cleared...not sure if this would be actually possible though. But another point is that apparently 4 other properties on the development have sold in the last couple of years, so we'd guess they were in the same situation. Nervous times ahead me thinks

Is that developer who has the mortgage pre date sales contract... Are they still.operating.

I was nearly tempted a year or so ago to go for a nice bungalow in Liopetri, but the deeds issue stopped me dead... It was a lovely property that had potential... We are going back to the area for a break in October so expect to do a reccy of the area again along with Sotira Frenaros and Kapparis......

What makes you feel optimistic and comfortable of a satisfactory safe resolution

@Toon well ref the green area, a local politician is involved as several residents are party members, plus the lawyer has an excellent reputation (and previously was in a senior position on Land Registry)....case of not what you know, but who you know perhaps! Secondly ref the mortgage, if the debt is called in, as the purchase price is well below our max budget, there are monies available if we need to settle our portion of the mortgage.  Yes, we know we could be waiting years for resolution on both the prohibition and the Trapped Buyers process, but if the worst case scenarios happen and we are left with a property that can only be passed to our heirs then we can accept this risk. Our daughters have been made aware that this could happen and they too are ok with this. As long as no-one can reposses the property or land it sits on, then we think we'll take the plunge. Guess we are in a better position financially than some and there are ways around the difficulties if we put our hands in our pockets...and in the end if all is resolved then we'll have a property which will certainly gain in value

@Sam&Bob I wish you both  the very best of luck ....

@Sam&Bob I wonder if the following individual may be able to offer some advice and guidance he is on the Cyprus Eastern Forum. His name is Nigel Haworth and he is very knowledgeable about Cyprus Property Law.

You can try and post a question here:

http://www.easterncyprus.com/viewforum. … 0c60e968ba

You may need to register first.

@Sam&Bob I cannot understand that since the vendors have put an AEA application to the land registry and I presume they have fully paid for the property, how come the title deeds were issued recently in 2022 on the developer's name, and not on the  vendor's name. Also I am surprised that the vendor did not object to the issue of the title in the name of the developer since he already fully paid for the property and deposited the sale agreement with the land registry at the time of purchase in 2005,

Your call but never ever trust a lawyer. Yours or theirs! It's ur money and if there is a forced sale due to illness or death it will b a mill stone. Never easy to walk away but you are probably best to.

A big-name lawyer swindled millions of euros out of her clients, involving in them in pyramid-scheme type tactics, a report said on Monday.

According to a report in Politis, a lawyer from Nicosia managed to swindle developers, lawyers, accountants, foreign businessmen, and even criminals with her pyramid-type investment opportunities that she presented them with.

The woman also had help in her scam, working with three other lawyers and a notary public, while she also appropriated company shares from one of her client's companies and attempted to sell properties, as her own.

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The victim, a foreign business owner, was the one who uncovered the story, through the help of his lawyer abroad.

The lawyer turned over all the documentation to the Limassol police, who have until now only questioned suspects, without arresting anyone.

According to the report, the businessman's assets were transferred unbeknownst to him to another lawyer in Limassol, after receiving a sign-off from the notary public.

The issue came to light after the accountant of the businessman's company informed tax authorities that no such transfer had occurred.

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