Solution to risks, when purchasing property in North Cyprus

tanwg


Joined: 15/02/2009
Posts: 24

Message Posted:
25/06/2010 10:13

On agreement of sale with purchaser, the agreed monies could be paid into a trust fund agreed between both advocates. This money would then be released on receipt of Kocan, with the vendor receiving the interest accrued.

If the PTP is refused (two years after the sale) then the purchaser must pay the vendor a reasonable fee (say the rental value of the property for the time period between date of sale and refusal of PTP). This would be deducted from the money placed in the trust fund.

Obviously it goes without saying that this must be included in the contract.

deputydawg


Joined: 30/03/2010
Posts: 1727

Message Posted:
25/06/2010 10:45

Not sure if I read this correctly but if "off plan" where does the builder get "monies up front" from to commence the build? From my experience it takes a huge leap of faith to entrust any client monies to some law firms who evidently do not carry any indemnity insurance in the event of malpractice, bankruptcy, death, etc. How many vendors will be willing to await their monies perhaps for years? I am not trying to rubbish any initiatives for improving things, indeed applaud any much needed initiatives, but I believe in dealing with what passes here for law and business ethics, any good ideas will have to include more safeguards than Fort Knox.

tanwg


Joined: 15/02/2009
Posts: 24

Message Posted:
25/06/2010 12:42

Apologies, suggested solution for re-sale properties only, not "off plan". Off plan as far I'm concerned is a dead duck. If advocates cannot be trusted then North Cyprus doesn't stand a chance as far as any investment is concerned!

catalkoykid


Joined: 15/02/2009
Posts: 1190

Message Posted:
25/06/2010 13:02

so i sell my villa to you and wait 2 years for my money, you on drugs thawq, or sorry just noticed Cardiff lol

tanwg


Joined: 15/02/2009
Posts: 24

Message Posted:
25/06/2010 14:05

Yes, wait two years for the money, at least it's guaranteed. Otherwise "no Kocan, no sale", which is an even worse position for the vendor, when the buyer can pull the plug at any time.

Have you any alternative solutions Crapalkoykid?

deputydawg


Joined: 30/03/2010
Posts: 1727

Message Posted:
25/06/2010 14:46

Tanwg, no apology needed for a suggestion which has merit and, for those who do not immediately need the capital for a purchase in UK, it is there for consideration. I was playing Devil's Advocate, as I am totally cynical with the thought of the risk of monies in trust over a protracted period disappearing into the ether. Is it possible to use only UK law firms and a UK deposit fund ? Presumably only a Cypriot lawyer can process a change of title in TRNC ? It may be possible to explore whether or not a UK law firm can appoint a Cypriot Advocate as an agent but will the UK Law Society indemnify such an agent's acts and/or omissions as they do for all UK solicitors on the roll ? Sadly, nothing is straight forward here when it involves property, some would say when it involves anything !