Developers in Breach of Contract

Yvonne



Joined: 16/05/2008
Posts: 273

Message Posted:
30/05/2009 00:46

Hi all,



Back on 25 March 2006 I signed a Contract of Sale to my apartment in Palm Bay View and below are points that I have been concentrating on lately, and that I am hugely dissatisfied with:



I bring your attention to Point 5 of my Contract, and possibly yours:



5. The vendor further agrees and undertakes to complete the whole construction work of the apartment, further complete the entire construction work for Phase __ and to deliver full vacant possession of the apartment with road access to the apartment and a supply of electricity and water to the Purchases within 24 calendar months of the date of this Contract with 4 calendar months race period:

a. should the vendor fail to complete the said construction work and deliver full vacant possession of the property to the Purchasers after the expiry of the grace period hereinabove written then:

More//

Yvonne



Joined: 16/05/2008
Posts: 273

Message Posted:
30/05/2009 00:47

//more:

. should the vendor fail to complete the said construction work and deliver full vacant possession of the property to the Purchasers after the expiry of the grace period hereinabove written then:

i. The vendor hereby agrees and undertakes to pay the Purchasers the sum of GBP300 for each calendar month of delay by way of agreed compensation.

ii. The vendor further agrees that should the delay be more than 9 months in total this Contract of Sale shall be voidable by the Purchasers with notice in writing.



Y

TimothyCadman


Joined: 13/12/2007
Posts: 1040

Message Posted:
30/05/2009 00:59

Seems pretty simple enough. So did you get your money back after you informed them in writing that due to the stipulation of clause 5.a.2 that you wish to void the contract?

Yvonne



Joined: 16/05/2008
Posts: 273

Message Posted:
30/05/2009 01:08

Hi Tim,

Are you crazy? Nothing in N C is simple. 'get your money back'? Well said, but I would say, 'null and void' in NC. Perhaps we all should get ourselves a European solicitor...???

Yvonne



Joined: 16/05/2008
Posts: 273

Message Posted:
30/05/2009 01:10

And why, all due respect, is no one adding to this thread?????? Hasn't anyone else got balls to speak their mind????

Moover321


Joined: 11/04/2009
Posts: 649

Message Posted:
30/05/2009 01:55

Yvonne! Your case is a sorry one. What is worse, if that can be said knowing where you are now, is that your case is not an isolated occurence. It is endmic in Cyprus as a whole and not just a Northern thing, though defintively more prevalent in the north. For what it is worth it is also happening all over the Med as the world economy in general and the property market in particular adjusts to the new reality.



Legally, you have the 'law' on your side. However, the law is only as good as the ability of the Judicial process to enforce it. Justice delayed is justice denied! The legal system and the local network of developers who know lawyers, who know official who know more officials higher up the pecking order mean that justice is not only delayed but is expensive and tortuous.



Whether you 'give up' or 'hang in there' is your choice and your choice only.



The only thing I can suggest is that you think about it long and hard! What is worth having is worth fighting for - Justice?

TimothyCadman


Joined: 13/12/2007
Posts: 1040

Message Posted:
30/05/2009 02:42

Yvonne,

By the stipulations in your contract you are entitled to your money back. That is quite clear and no judge would say that it could be misunderstood or it is vague. As long as you gave them notice in writing then you are covering your back when, or if, this goes to trial.

Your other option, as pointed out by Moover321, is to 'hang in there' and wait until the site is finished.



So the choice is yours. Fight in the courts, or wait.



Personally I would fight. My developer soon got on with my problems after a letter from a solicitor giving him notice of prosecuting. Your developer, being Israeli, doesn't really want to upset the government by his actions being brought into the public forum of an internet notice board or the judiscial system. He may find his business is then open to scruitiny by the governemnt and he really doesn't want that!!

CyprusChill


Joined: 08/05/2009
Posts: 666

Message Posted:
30/05/2009 07:09

Yvonne, i am one and siimilar having to complete on a contract deal with my builder.

He wants' the money but negates his obligations.

Completion, road access, water / electricity supply, communal swimming pool.



Very, very slow but sure improvements are being made. But the long wait can be torturous.

I am very much a believer in the North of The Island, but it is taking its toll on me also.



My solicitor Maomi Mehmet, does not appear to instruct me when i ask ' has this or that been done ' or should i should not pay.



September 2007 (3 months) grace period point 6. of my contract.



I still have to hassle and defend my case in 2009.



Patience is a virtue, but when you have agreed your part of the bargain. These individuals just piss you off.

ROBIN HOOD


Joined: 26/05/2008
Posts: 238

Message Posted:
30/05/2009 10:29

Here we go agasin. The shortist book in the the world. "Penalty payments for late delivery of property in NC" Wake up people. It doesn't happen.

RedSnapper


Joined: 12/08/2008
Posts: 540

Message Posted:
30/05/2009 11:14

My neighbours got paid 1200kwid by the developer for late delivery straight away and the villa is really well finished.

On the other hand my 18grand pool built by the same has a crack in it and they are completely ignoring me.

I think a lot depends on what mood they`re in,what other expenditure they`ve recently had and if your face fits

Teamcharms



Joined: 26/06/2008
Posts: 126

Message Posted:
30/05/2009 15:05

Hi Yvonne, only just logged on and saw your message. We have the same clause but apparantly we could not have the penalty payments deducted from our final payment, as it is 'not how things are done in NC'.

Going down the solicitor route their response to phase one not complete on time is - 'If you mean phase one you are entitled to 300 GBP for each calender month of delay as agreed compensation. However, please note that this compensation will be subjected to the reasonableness test of the Court and may be adjusted to a lower amount.'

If we wish to take this further then it is more money in the solicitors pockets, and no guarantees.

In a pessimistic mood - it's a lose-lose situation, but trying to be optimistic - we have a completed apartment and seem to have a good developer (who has had problems with their contractors) but have carried on regardless and not left the site unfinished - there are plenty I'm sure that have been left with the latter.

breezyboy


Joined: 14/05/2007
Posts: 1179

Message Posted:
30/05/2009 15:13

Sorry it was the governments fault not ours. Standard reply no47.

We were 13 months or £3900 adrift when we took over last july.

Get the place finished , get the Kocan,then you have the time, at least 3 years minimum, to sue, if the developer is still solvent!

Howmuchlonger


Joined: 08/11/2008
Posts: 61

Message Posted:
30/05/2009 15:44

According to my 'contract' the developer owes me £40k + for the delayed completion (4 years late and counting). He thinks it's all very amusing! So does our 'Advocate'!

Moover321


Joined: 11/04/2009
Posts: 649

Message Posted:
30/05/2009 16:41

Like I said they can do it because even if the law is on your side the legal process is long and arduous!



Justice delayed is justice denied!



Fact still remain they don't take legal threats seriously as nothing will happen!



Honouring your word is not fashionable these days anywhere including the TRNC!

elkiton



Joined: 15/03/2009
Posts: 514

Message Posted:
30/05/2009 18:06

Hi Yvonne, yes I will contribute.The reason you don't get many sensible contributions is that people are just using 3rd hand stories and the thread is a clutter of frustrated dis/mis information, in my opinion.



The developer/ builder whatever tells you "no go lady", that is just the starting blocks, the race ain't even under way, but many think it is lost, they believe anything they are told.



If your "solicitor" is going nowhere with it, you may have the "wrong kind" of legal representation, and I won't comment further. If you do due dilgence and have your case outlined well, then a good legal rep will tell you if you are positioned 50/50 or better, and take the case on. It is not that expensive.



Get the case before a judge, and like me you will find that the Legal system actually works very well. There are two parts to the case, firstly getting a judgment of guilty, and secondly getting satisfactory reparations.



offline if you want to chat more elkin_tony@yahoo.co.uk

joandjelly


Joined: 24/02/2008
Posts: 2953

Message Posted:
30/05/2009 18:22

Tony if you don't mind me asking, how many times did you have to go to court and how long did the whole process take before your case was completed?

stavroscyprus


Joined: 30/05/2009
Posts: 78

Message Posted:
30/05/2009 18:27

yvonne from the contract details you have quoted completion of your property is 5 months outside the 9 months maximum which isnt bad at all for cyprus north or south. your contract states because of this 9 month clause it can be voidable by yourself, the purchaser. but you need to check that if you do void it that you are entitled to 100% of your money back.

Geejay


Joined: 18/04/2009
Posts: 475

Message Posted:
31/05/2009 08:18

Yvonne, I would suggest you take this complaint to the Homebuyers Pressure Group for advice. They have a "clinic" on Tuesdays at the Pia Bella. Marion Stokes or Mike Bessant would be pleased to help I know.



They spend most of their time helping others with these kind of difficulties. I believe that they will tell you that penalty clauses in property contracts are not enforceable in law unless you have previously applied to the courts to make it so.



Your circumstances however may be different to mine. Good luck. What we need to do is "name and shame" these rogue developers/builders and "name and praise" the good ones.

hds.trnc


Joined: 26/05/2009
Posts: 175

Message Posted:
31/05/2009 08:42

I think you should begin with the notion that your not in the uk...that your property is likely to be late, that compensation will not be paid...and provided the developer is still solvent you will get your property. Sadly the contract tends to be less than effective here than perhaps in the UK. Ive no doubt you would win at court, and you may be awarded a reasonable sum of money paid over a specified time period. I would ask do i want to wait for that length of time or would i prefer to 'get something for my money'...yes court can be tortuous and expensive, you will win..within the terms of the trnc, plus all the hoops and delays that are endemic with that process....good luck

Aga Buyers A G


Joined: 04/10/2007
Posts: 488

Message Posted:
31/05/2009 09:33

To date AGA Development owe us £42,000 in late delivery fees ! We issued Court proceedings in January 06 so don't hold your breath !



Suz

xxxxx

fatbill


Joined: 14/05/2009
Posts: 10

Message Posted:
02/06/2009 05:33

Top of the morning to you Yvonne..



Just seen your thread dated 30/5/09. Iam not every good at posting but my contract with Andelip also said that I would get £500.00 per month as a late fee . The site in Alsancak is now over a year and a half late and work has stopped completely, the last time I was over I spoke to my solictor about this, he said that clause was not worth the paper its wrote on. Big big laugh . He was the one who got me to sign the contract. Also my clause was number 5 .

I just think that late fee are a total none starter in Northern Cyprus.

Good luck



Fatbill



Ps Please let me know how you get on..... Thanks....

elko2



Joined: 24/07/2007
Posts: 4400

Message Posted:
02/06/2009 08:13

My daughter has a contract with 300 pounds late delivery clause. It is a few months late and once finished (I hope soon), we will sue for compensation and get it just to prove that sometimes it works. We are in a comfortable position because 1) we already have a share title deed and 2) the actual owner of the construction company is a guarantor in person and he is a wealthy man. So he will either have to pay or have to pay, no other choice.

ismet

Geejay


Joined: 18/04/2009
Posts: 475

Message Posted:
04/06/2009 21:14

The penalty problem is not about whether you win the verdict of the court (although this is in the lap of the gods) but about how you enforce the courts decision. You may well find that this clause is not accepted legally here.

Since the advocates in this country have no duty of care I suggest you take advice from the HBPG. The police are usually not interested as it's a civil matter and I don't believe there is a system to enforce the courts verdicts.



However I hope I'm wrong in this, so good luck elko2.

joandjelly


Joined: 24/02/2008
Posts: 2953

Message Posted:
04/06/2009 21:47

Hi Ismet how long to you expect your court case to last? The reason I ask is that a neighbour of mine is suing our builder for breach of contract and has already been to court over 20 times with very little being achieved so far other than adjournment after adjournment as the judge keeps giving the builder time to come up with a defence even though he hasn't one. He doesn't even bother to turn up to court.

girne 29


Joined: 06/12/2007
Posts: 1488

Message Posted:
04/06/2009 23:34

Yvonne



Tried to go down your route.Told my "advocate" to invoke the penalty clause and copied in the estate agent and developer. After several more messages from me,my "advocate" asked what it was I wanted him to do.

I suggested to him that it was a bit strange(silly me ,not long in TRNC) him asking me what he should do as I thought he would have more experience of TRNC legal system than I .

I further suggested that even one as ignorant of the law as me, might think sending a letter to the developer asking him to pay the penalty might be a start. Not exactly Perry Mason stuff!



Forget it Yvonne, it will only tire you out.

The reason I believe the ROC used the Orams case for political reasons rather than to damage the property market was that there was no need, they couldnt have done any more damage than the TRNC had done itself.

rayz1


Joined: 22/03/2008
Posts: 65

Message Posted:
05/06/2009 00:02

What if its a british company selling property in trnc and they have property in this country and all the transactions have taken place in britain at there instigation and they have told you they are selling the

british way it just happens to be in trnc how do you stand legally

elko2



Joined: 24/07/2007
Posts: 4400

Message Posted:
05/06/2009 01:13

Joandjelly,

Once it goes to court, it should finish in a matter of months. If you have a good lawyer who does not stand for nonsense, it should not last too long. My daughter's position is very different from most. She already has the share title deeds, so the specific performance does not come into the picture. The second point is that companies may go bust very conveniently. In my daughter's case the owner of the company is personally responsible. Of course it was me who negotiated and wrote the contract

ismet

Lemtich



Joined: 15/02/2007
Posts: 1487

Message Posted:
05/06/2009 01:25

Its a long way to Tipperary.



And their hearts arn't there.



Lem

ricky


Joined: 26/01/2009
Posts: 294

Message Posted:
05/06/2009 16:03

Hi Yvonne,

Can you tell me which Israeli developer it is, please?

Tx

MotoMoto


Joined: 15/02/2009
Posts: 152

Message Posted:
05/06/2009 16:51

It depends how firmly and forcefully you present your case. A legal letter from a limp wristed so called lawyer will achieve very little - you will have no hope and Bob hope of getting any compensation for late delivery



The issue must be discussed directly with the proprietors of the construction company with whom you have the sales agreement. I agreed an £8,000 reduction from the £10,000 contractually due from SantaFe after the 3 month grace period on the basis of £1,000 a month - last payment reduced accordingly



A legal letter would not have achieved that result I suspect.....

girne 29


Joined: 06/12/2007
Posts: 1488

Message Posted:
05/06/2009 18:01

MotoMoto



Usually what you suggest has been done long before lawyers involved,you were lucky ,most of us were ignored for long enough ,then fobbed off.

Most people wouldnt touch the legal system in regards to construction ,with a barge pole.Only as a last resort.

Its really easy, they just escape responsibility by saying they were held up by electric,water or some other such .

The excuses would come under "for reasons outwith our control".



Anyone buying in trnc should no way rely on the "contract" but rather on word of mouth in relation to builder ,developer ,and estate agent.



We are perfectly happy with our purchase and have had no problems from builder,but would say thats because our builder had a good reputation to maintain ,and certainly nothing to do with the contract,or legal system.

CasaCoco


Joined: 06/04/2009
Posts: 95

Message Posted:
05/06/2009 22:37

Has anyone got any suggestions for the following case...



My friend purchased a villa plot in the development behind Smart (Catalkoy) in July 2007. She purchased through an estate agency (whose name I've forgotten at the moment) and paid the reservation fee. Since then she has only dealt with the builder or her solicitor, the agency have not bothered themselves since (nothing new there then!). At the time of purchase there was one villa under construction. She chose her plot according to the site plan as given to her at the time and which forms part of her contract.



The builder however, then repositioned the plot sizes and her plot shrunk quite considerably, although he didn't tell her at the time. Of course, once construction was underway, there was little she could do about the positioning of her villa as it was too late by the time she found out. The builders reasoning for moving the villa slightly was because there were some olive trees and they could not be moved....

CasaCoco


Joined: 06/04/2009
Posts: 95

Message Posted:
05/06/2009 22:44

...as they were 'protected' by law! She should have had at least 4.5 metres between her villa and the boundary fence (which was supposed to be a wall but is chicken wire instead!) but there is now only 1.5 metres, thus making her very close to her next door neighbour. After several problems during construction the villa is now finished and she was given a set of keys when she was out last in Dec/Jan. However, since then, the builder has changed the locks!! In all of the owners contracts (there are 3 other villas built, but one belongs to the builder's mother) it states that a payment of 950 pounds is payable for the transformer. However, the builder has since changed the electricity (due, I believe, to the Smart shop complex that he has built) and it now requires more distribution power. He is now asking all owners to pay 7,600 pounds each so he can finish the remaining infrastructure, connect the utilities, tarmac the road etc etc. Naturally, everyone is refusing to pay this...

CasaCoco


Joined: 06/04/2009
Posts: 95

Message Posted:
05/06/2009 22:52

...as it is way over their contract price and even my friend's solicitor has agreed that it is extortionate. The villa has been 2 years late in completing and her contract also states a penalty charge of 300 pounds per month, for a maximum period of 6 months, but of course, trying to get a penny out of the builder for that is nigh on impossible.

Even though she has paid in full (apart from the 950 pounds for the transformer, and she owes 1,000 for the snaggings which she will not pay until he has finished everything to do with the villa) it seems the builder will not finish the remaining road works, snagging or handover the title deeds to the owners until everyone pays the 7,600 pounds!



Does anyone have any suggestions as to what she/the other owners can do?? Your help will be appreciated.



I personally think her lawyer is next to useless and as for the builder....Caydamli Enterprises...anyone know him?