Putting your property into a Client Trust

anastacia


Joined: 21/05/2009
Posts: 14

Message Posted:
01/09/2010 17:30

Can anyone tell me anything about putting a property's Kocan into a Client Trust if you have been refused PTP.?



I know that there are several companies offering this service and that the Client Trust company is acting only as a holding company. Therefore if they are not trading there should be no risk of bankruptsy.



Any information is appreciated.

Mandy


Joined: 25/10/2009
Posts: 48

Message Posted:
01/09/2010 19:15

I'd also like to know about these trusts and how safe they are.



I've heard it means you can buy more than one property, and there are no taxes when you sell, you sell your share in the trust.



Difficult to trust your property in someone elses name though.....

Bradus


Joined: 25/02/2007
Posts: 2641

Message Posted:
01/09/2010 20:44

We looked into this when we were refused ptp on Pre 74.

Many advocates are offering this as a safeguard so that the deeds are transferred to the advocate thus preventing the developer (who can't hand them over to you unless you have PTP) from taking out a mortgage or you having memorandums put on the property that become your problem. This as you know is the biggest problem for people without deeds.



Several questions need to be asked before embarking on this idea. Firstly do you trust advocates enough to have your deeds transferred into the name of the advocates company? Secondly its an incredibly expensive option. The administration fee alone was £3000 and there was also an annual fee, all made worse as there was also tax implications. I had a good builder and would have preferred him to hold on to them rather than the advocate.

What a legal system......good isn't it?

ajaney


Joined: 24/12/2008
Posts: 199

Message Posted:
01/09/2010 20:47

Naomi Mehmet operates a trust. I belive the set up fee is £1000 with an annual fee of £300. It is well worth speaking to her as she is very honest and will point out any pitfalls

Tenakoutou



Joined: 27/07/2009
Posts: 4110

Message Posted:
01/09/2010 20:58

Have you any idea of the huge tax implications?



As did 'Bradus', I looked into this re our refused PTP pre '74 property - thanks, but no thanks Mr. Advocate.



Firstly, ask your Vendor if he/she is prepared to give you sole 'Power of Attorney' on your property, which means you can sell it without permission, and the all so necessary co-operation, of the Vendor - if not, then BEWARE of the Vendor's motives.



Putting your property in Trust is a good idea if you can afford to take the risk of losing ALL - no matter what you are told!



BE WARNED - BE VERY WARNED!

cyprusman3



Joined: 09/06/2009
Posts: 297

Message Posted:
01/09/2010 21:14

message 5 ditto , if you want to put your property in a trust remember 1 thing this is north Cyprus and there is no trust here !!! Don't be a mug you will be sorry.

Tenakoutou



Joined: 27/07/2009
Posts: 4110

Message Posted:
01/09/2010 21:19

cyprusman3:



You put it much clearer and better than I did, mate!

cronos


Joined: 26/10/2008
Posts: 2093

Message Posted:
01/09/2010 21:21

I must echo the views of the posters above.



It seems fraught with complications ,ifs ,buts, as well as considerable expense !



With my ever cynical head on about the TRNC property system I suspect this is just another way for advocates in particular to generate more work and fees now that the conveyancing trade is almost dead.

cyprusman3



Joined: 09/06/2009
Posts: 297

Message Posted:
01/09/2010 21:27

cheers me dears he hee

Bradus


Joined: 25/02/2007
Posts: 2641

Message Posted:
01/09/2010 21:31

Well said cyprusman3. Straight to the point.

anastacia


Joined: 21/05/2009
Posts: 14

Message Posted:
02/09/2010 15:36

My lawyer does not operate a Client Trust.

I have. since I put on the first message, found out some further information.



I have spoken with Naomi Mehmet and she does not operate one either but she has given me contact details of a company who do.

She says that these companies are only Holding companies, therefore do not trade anything and are simply set up to hold the Kocan in Trust for their clients.

I beleive the set up fee is more like £1500 and an annual fee of approx £200 to £250.



I know that in the UK there are similar companies that property can be put into a Trust with mostly to avoid CGT.



Has anyone any experiance in dealing with any of the Trust companies in TRNC?

And what are the tax implecations?

gazmufc78


Joined: 03/09/2009
Posts: 366

Message Posted:
02/09/2010 16:29

the other option worth looking into is setting up a trust company between a few home owners. You will need Turkish directors who would own 51% of the shares. I would suggest that you have say 3 Turkish directors who own 17% of the non trading company and they are anonymous to each other. A "good lawyer" probly as mentioned above could set this up and advise.

cronos


Joined: 26/10/2008
Posts: 2093

Message Posted:
02/09/2010 16:49

No-one is asking the obvious question !



Why should we have to go through this tortuous route and be treated as second class citizens just to purchase a property in TRNC ?

Molly


Joined: 30/08/2008
Posts: 299

Message Posted:
02/09/2010 16:56

There are risks with any Trustee agreement simply because you are not in control.



Message 12 is ideal but impractical.



Setting up a company is costly. Even if the company is non-trading, an accountant still has to be appointed to file the required information.



Company taxes are far higher than non professional taxes.



You will be liable for the directors' income taxes and pay 6.25% stopaj tax when selling the property.



There is no such thing as an irrevocable Power of Attorney.



Do your research but beware.

Hector


Joined: 26/08/2008
Posts: 2352

Message Posted:
02/09/2010 19:51

The TRNC wants the right to be recognised by the rest of the world yet doesn't want non TC's to have any rights.

negativenick


Joined: 10/11/2008
Posts: 6023

Message Posted:
02/09/2010 21:25

if you steal a car and make a new log book -no matter who's name yu put it into - it ain't your car....

anastacia


Joined: 21/05/2009
Posts: 14

Message Posted:
05/09/2010 02:29

negativenick

if you steal a car and make a new log book -no matter who's name yu put it into - it ain't your car...



What are you talking about Nick?

girne 29


Joined: 06/12/2007
Posts: 1488

Message Posted:
05/09/2010 03:56

How many of the advocates that would be running the trusts are telling clients now or told them in the past that they cant get ptp on pre 74 deeds.They would be better doing what they were paid to do in the first place,then just maybe, Trusts wouldnt be needed,



Purchase a house , then after you pay for it in full, get told you dont own it by a Govt that will however allow you to sort of own it by putting it in trust, which then attracts further taxation and fees from advocates .Govt and lawyers get more money,so no probs.

Think any impartial observer would say that using the word Trust in that context is laughable.

spider


Joined: 03/01/2009
Posts: 5527

Message Posted:
05/09/2010 06:19

negativenick..



a very good point, but they dont get it...



Would the said Trust when ready, state thats its their right to be able to sell properties in the trusts name.. You bloody well bet ya ass they will..





Spider,X

scoobydoo


Joined: 10/11/2008
Posts: 2434

Message Posted:
05/09/2010 07:23

What is the difference between setting up a 'trust ' or just setting up your own company and putting your property into that?

Tenakoutou



Joined: 27/07/2009
Posts: 4110

Message Posted:
05/09/2010 09:16

scoobydoo/msg 20:



Best to re-read Molly's msg 14.



When you're a foreigner in Cyprus - you have no protection, whatsoever, because there are always loopholes that allow the unscrupulous amongst the locals to get away with anything that involves parting you from your money, or assets.



This NOT UK and considers it has NO OBLIGATION, whatever, to abide by ethically lawful practice according to the statutes laid down by the EU and UN.



The word 'TRUST' is simply an open invitation to get thoroughly cheated and is as duplicitous and meaningless as 'HOSGELDINIZ KIBRIS'!

zcacmxi


Joined: 30/11/2008
Posts: 388

Message Posted:
05/09/2010 09:33

Just so that it doesn't get lost in all the above posts amongst all the noise, I will repeat cyprusman3's message 6:



If you want to put your property in a trust remember one thing. This is north Cyprus and there is no trust here !!! Don't be a mug you will be sorry.



I don't want to be reading loads of posts on here from mugs in a few years time saying they are victims. Just don't go there.

Bradus


Joined: 25/02/2007
Posts: 2641

Message Posted:
05/09/2010 10:51

Good advice from message 22.



The question, when like you, we were refused our PTP, is how do we safeguard our property? Without deeds your builder or developer will continue to own the property. We had a good honest builder but many in this situation worry about their builder running into financial difficulties and memorandums being placed on the property. As we are discovering this can result in the bank auctioning your property and despite having paid in full for a property you end up homeless or lose all the money you have invested.



Taking out a trust was not the answer for us, because by this time we had completely lost confidence in the legal system and thought it would be simply a case of throwing more good money after bad.



The decision in the end was to vote with our feet, sell up and leave.What other options are there? You need to weigh up what could happen if you "sit tight" and then take control rather than be controlled.