Is it normal to prevent British buyers

zink1505


Joined: 22/03/2008
Posts: 21


Message Posted:
13/04/2008 13:27

I have just been told by a eatate agent that they want to put in a contract for a property I was thinking of buying a clause that would restrict me selling the property to another foreigner (Britsh etc) until I personaly recived title of ownership in my name. As you know this could take years and therefore does not seem right or reasonable. They are telling me this is normal................My lawyer disagrees.

Its not that I want to sell before I receive Title of ownership, but you never know I may have to for reasons beyond my control. This clause would limit the sale to locals only.



Thanks



Also what is a reasoable final retention payment until you receive title of ownership as % ?



The property I am looking at is TNRC freehold title.





Thanks

norths4me


Joined: 19/04/2007
Posts: 150


Message Posted:
13/04/2008 13:42

Tell them that unless the clause is removed immediately you will be withdrawing from the sale. Then see what happens, if your not happy chasnge estate agents



Good Luck N4M

TimothyCadman


Joined: 13/12/2007
Posts: 352


Message Posted:
13/04/2008 13:47

zink1505,



Your lawyer is correct. The clause you are talking about is from the BUILDER.

Basically, he doesn't want you to sell before title because, if you do, he doesn't get to pay his taxes. The next person sells before their permission comes through and before you know it the house is worth a fortune.



Eg. You buy the house for £100,000. You wish to sell 2 years down the line. You want £130,000. You get it. The people who move in stay long enough to get their Permission To Buy. They pay taxes on the £130,000, but here's the sting...........SO DOES YOUR BUILDER. He doesn't pay the taxes on the original £100,000 you bought it for.

And of course should your buyers sell before they get a kocan and also make a profit then the scenario just goes on and on.



Selling to locals would speed the process of house buying so the value of the property won't increase that much between tax paying and valuation.



Retention: 5% is a reasonable figure.

breezyboy


Joined: 14/05/2007
Posts: 210


Message Posted:
13/04/2008 13:59

Hi Zink

You never know what you might need to do in the long period it can take to build in TRNC. I had to change things which could not have happened with this unnecessary clause.

Regarding retention until ownership comes through they are unlikely to accept this due to the length of time it takes to get permission to purchase and then subdivision of the land into individual plots. For me this was 2 years and then a promised 18 months respectively. The only retention you should get is for snagging and mine was 5% .Regarding norths4me's comment most properties are being handled by more than one agent, see if anyone else is handling this place and ask them.

Breezyboy

brian24001


Joined: 23/03/2008
Posts: 283


Message Posted:
13/04/2008 14:49

Walk away, there is an abundance of properties for sale, if they try to tempt you back, the offer just dropped by 10k.

MCSTEVIET



Joined: 11/05/2007
Posts: 701


Message Posted:
13/04/2008 20:44

Agree with Brian, Walk away.



Who is the Estate Agent and Builder?



Mc

ukturk



Joined: 01/09/2007
Posts: 1931


Message Posted:
13/04/2008 21:40

hi zinc

however you like the property it is not worth you being stuck with a property that you are only restricted to selling to a local especially if the property price is quite high what local will be able to buy it

even if you still have not recieved your kocan (deeds) you can still sell it by the exsisting owner selling it on your behalf but you make sure you have a contract stating this and all monies received goes directly to you

my final words are if the agent or seller does not agree to lift this clause WALK AWAY without a seconds thought you will find another property you will fall in love with and remember its a buyers market at the moment and supply is out weighing demand

good luck

ukturk

elko2



Joined: 24/07/2007
Posts: 389


Message Posted:
13/04/2008 22:37

I would never agree to a clause that would restrict my options for the future. A buyer should always be able to sell on i.e. assign his rights arising from the contract to others. However the new buyer should want to register is new agreement with the District Land Office DLO. This can only be done if the new agreement is between the new buyer and the owner of the land. Thus there should be a penalty clause to force the vendor to sign a new agreement with the new buyer, otherwise he may refuse or ask for an exorbitant price.

ismet

zink1505


Joined: 22/03/2008
Posts: 21


Message Posted:
14/04/2008 07:46

Thanks everyone, you have confimed my own thoughts. The Estate Agent is Ian Smiths. What they are requesting is deal breaker for me.

I am looking for a seafront villa ?

Thanks

peachy


Joined: 18/04/2008
Posts: 25


Message Posted:
19/04/2008 13:56

tell am on there bike .... doesnt take years to get ya deeds ....and even if ya havent got them ya can still sell ya property