Problems with Builders & Solicitors

Turtle



Joined: 28/05/2007
Posts: 229


Message Posted:
16/03/2008 10:49

It seems that when reading posts on the forum that most buyers have a problem with getting information out of builder/solicitors.

It would be interesting to know what excuses they have given in the past for late completion dates.

It seems simple to me that its in thier own intrest to get these projects finished quick so they get paid ?

Bradus


Joined: 25/02/2007
Posts: 756


Message Posted:
16/03/2008 11:21

Towards the end of construction there is usually the least amount of money left to be paid. Its the beginning and middle payments of the development that reap the most for the builder. So the builder often moves on to start further developments elsewhere on the island or begins stage 2. As you can see from the Kavenkoy thread even if you have clauses in your contract for late penalties, it is rarely enforced. I had such a clause but luckily didn't need it and as someone as already said contacts appear not to be worth the paper they are written on here in the TRNC. They never will be until the government enforces and amends the law to protect purchasers.

Turtle



Joined: 28/05/2007
Posts: 229


Message Posted:
16/03/2008 15:04

In that case Bradus when the boots on the other foot can we hold back payment when due or hold some back on final payment ?

If the contracts are worth jack s**t then surely we can do as they do,

TimothyCadman


Joined: 13/12/2007
Posts: 352


Message Posted:
16/03/2008 17:07

The contracts you signed are legal and binding. They are enforceable in a Court of Law.



The problem lies with the judicial system and delaying tactics from the builders solicitor.



A typical example: You sue the builder. Your day in Court is likely to be 3 or more years away. In this time your builder ignores you. He won't finish your property. He won't issue any sort of title deed. You get to court. The judge finds in your favour. You're very happy. The builder isn't. He ignores the court order, so you have to sue him again. You get judgement. Now he has to do something. He does. He closes his company and restarts as a new one. So you're left with an unfinished property, no title deed and around £3000 out of pocket to sue him. Is it any wonder that many don't bother!?

Turtle



Joined: 28/05/2007
Posts: 229


Message Posted:
16/03/2008 18:03

So why are we advised to employ an independant solicitor ?

Why are we signing these contracts and spending money on what is basically a waste of time and unenforceable.

Does anyone actually know what legal rights we have ?

jmg171


Joined: 19/05/2007
Posts: 181


Message Posted:
16/03/2008 18:21

I would be interested to know !! how many purchasers has received compensation for late handover??

According to my contract for every delayed month on completion of my apartment the seller ( Developer ) will pay £500 per month.

The purchaser will deduct these amounts from final payment.

jmg

rtddci


Joined: 29/12/2007
Posts: 540


Message Posted:
16/03/2008 18:49

Turtle

You have summed up the problems of buying property in the TRNC and one reason for these forums and one of the reasons why the Home Buyers Pressure Group was formed. Have you seen the latest from the government re paying the 5% KDV (VAT) on taking posession of your property and not on getting the title deeds?

See Cyprus Today 15/3/08 http://www.hbpg-trnc.net/prelease.html

I despair

Martin

elko2



Joined: 24/07/2007
Posts: 396


Message Posted:
16/03/2008 19:23

Are the contracts worth the paper they are written on?

Pre registration almost worthless. After registration its worth something.



If you have your contract registerred, the developer will not be able to call the tunes any longer. He cannot mortgage it and he cannot sell it to someone else. However he may still refuse to finish the development and he may still refuse to transfer the title deeds. The Buyer cannot sue for title deeds because of the Specific Performance Law but you can sue for compensation and the property that you got registered is a good security when you get the court order for compensation. Thus now it is almost a level playing field. All the Buyers have to do now is be careful and not pay too much in advance. Now you can even insist for compensation for late delivery.



The next step should be a push to get the Specific Performance Law amended so that the buyers should be able to sue the develpoer for the title deeds.

ismet

elko2



Joined: 24/07/2007
Posts: 396


Message Posted:
16/03/2008 19:34

Re. msg. 7



KDV (VAT)

Cyprus Today article on KDV is misleading and wrong. KDV was introduced in 1992 by law number 47. So how can the paper talk about a law dating back to 1959?



I have seen the directive sent out by the Tax Office to accountants asking for the KDV to be paid when the lkeys are handed over and this directive was based on law 47/1992 temporary parag. 1(2). This parag. referred to buildings started before the passing of this law and authorized the tax office to deal with KDV for part of the building constructed after the passing of this law. Thus it has nothing to do with collection of KDV at the time the keys are handed over and thus this directivre has no legal basis and is null and void.



Furthermore, KDV is payable by the builders and they may have a right to get it from the Buyers if their contract stipulates it. So I suggest buyers do not pay KDV until the builder is to transfer the title deeds and only after they are shown a receipt that it has been paid.

ismet

pilgrim



Joined: 11/05/2007
Posts: 717


Message Posted:
16/03/2008 21:24

Thanks Ismet,will save this advice.

orangekazzie



Joined: 31/07/2007
Posts: 972


Message Posted:
16/03/2008 22:30

Hi Jmg

As Tim said earlier it may say these things in your contract but trying to get the money from your builder will cost you a lot more in legal fees than the £500 a month compensation which you will never see.

Karen