Implications of a shared Kocan?

mia100max


Joined: 19/03/2008
Posts: 404

Message Posted:
28/06/2011 10:06

Hi,

we have just found out we can only get a shared kocan on our villa, it will be 1/4.

2 of the other owners already have theirs.

Can anyone please tell me the implications of this.

So far the only downside I can see is that we will not be able to sell to Turkish Cypriots who need a mortgage?

Many thanks.

DutchCrusader



Joined: 19/05/2008
Posts: 11281

Message Posted:
28/06/2011 10:24

@ msg 1, mia100max: 1 : Another downside is, as I'm told by a Cypriot Turkish neighbour who is in the housing business, that your villa (I estimate 100,000 Sterling) on shared land will be devalued by at least 10,000 Sterling if you'd want to sell (i.e. compared to your house and land with a personal title deed).

2 : If there's pool on the shared land the pool is also shared - how many buyers (in the current market circumstances) would really like that? Most probably more loss of money.

3 : The alternative (which, I'm told, will take at least three difficult, tiring years in court plus costs) is to fight your seller if you have it on paper that you were promised a personal title deed. Even then the outcome of the court case will be uncertain.

4 : And what about the other three owners of the shared land/pool? Why did they accept a shared kocan?

mia100max


Joined: 19/03/2008
Posts: 404

Message Posted:
28/06/2011 10:35

Thanks DutchCrusader, but surely if we have an individual land Kocan, no-one can trespass on your land?

I have been speaking to a lot of people since finding this out and most seem to be on a shared title deed, especially those in apartments. The general feedback seems to be "Just be thankful you have a land Kocan, a lot of people cannot even get that"!

newscoop


Joined: 23/12/2007
Posts: 2197

Message Posted:
28/06/2011 10:48

In theory the main downside is that before you can sell it on the property has to be 'offered' to the others on the site.



Obviously everyone is ignoring this but apparently it's on the statute books.



Interestingly it seems the above does not apply to the first person to be put on the kocan



strange but allegedly true.

Troodo


Joined: 12/06/2008
Posts: 1002

Message Posted:
28/06/2011 10:56

My neighbour is in the process of selling on a shared Kocan, only problem she has had is the wall between our house and her house. The wall apparently was not on the original plan because the builder was an idiot. Men came, measured wall and said no problem now. A shared Kocan is fine and quite normal here. As someone else said, grab it when you can.

DutchCrusader



Joined: 19/05/2008
Posts: 11281

Message Posted:
28/06/2011 11:03

@ msg 3, mia100max: Sorry, I'm a bit confused now

From msg 1: (...) we have just found out we can only get a shared kocan on our VILLA, it will be 1/4. (...)

From msg 3: (...) if we have an individual LAND Kocan, no-one can trespass on your land? (...)

I suppose you OWN the VILLA and have a SHARED KOCAN for the LAND/POOL? Or am I misunderstanding you?



@ msg 4, newscoop: (...) In theory the main downside is that before you can sell it on the property has to be 'offered' to the others on the site. (...)

▶ I think you're right, but it does not have to be infinitely so. The people involved can make an agreement that the first right of buying only lasts for X years (a TRNC lawyer should be involved).

mia100max


Joined: 19/03/2008
Posts: 404

Message Posted:
28/06/2011 11:12

Sorry for the confusion. The other villa owners have a shared land Kocan: 1/4

If it had to be offered to the others on the site first, that would be fine.... any buyer is a good buyer!

Troodo


Joined: 12/06/2008
Posts: 1002

Message Posted:
28/06/2011 11:35

You have to advertise the sale for 3 weeks, if the other shareholders do not react in this time, one wonders why they would, the sale can go through. If you think there could be a problem, advertise in a small obscure paper.

wanderer


Joined: 05/02/2009
Posts: 1653

Message Posted:
28/06/2011 12:11

so if one of the 4 people on your shared Kocan has a debt and is taken to court and a memorandum applied or made bankrupt would that effect you selling your property?

Troodo


Joined: 12/06/2008
Posts: 1002

Message Posted:
28/06/2011 12:24

Each holder of a shared Kocan has a separate title to a designated part; I cannot see that a dept on one would affect the others.

DutchCrusader



Joined: 19/05/2008
Posts: 11281

Message Posted:
28/06/2011 12:30

@ msg 10, Troodo: (...) Each holder of a shared Kocan has a separate title to a designated part (...)

▶ That means that the land must be officially parcellised? Or should the four owners do it? I know for certain that this is not the case at least not in my case (situation similar to msg 1).

Billo


Joined: 12/06/2011
Posts: 41

Message Posted:
28/06/2011 12:31

I sold a property about 2 months ago with a shared titled deed to a cypriot and they got a mortgage no problem. If you have a shared title deed and have paid the taxes and vat, at a later date when or if the land gets divided you can apply for the individual deeds, which won't cost you anymore money unless of course the builder wants a backhander. You need to find out why the land was never divided in the first place. The property I sold had not been divided because the Belediye wanted a footpath and drainage to be paid for by the builder, who would't pay for it, so the land remained undivided.

There is no problem with a shared deed, and as was mention earlier all apartments are on a shared deed.

Troodo


Joined: 12/06/2008
Posts: 1002

Message Posted:
28/06/2011 14:14

Hans, all three have a separate written Kocan for their share of the land.

mia100max


Joined: 19/03/2008
Posts: 404

Message Posted:
28/06/2011 17:31

Many thanks for all of the above. I didn't really think it would be a huge problem.

Now our agents & solicitor just have to convince our potential buyer!

Enchanted


Joined: 20/07/2008
Posts: 159

Message Posted:
28/06/2011 18:15

No its not a huge problem. My house is on a shared plot and we are going through the process of obtaining our seperate title deed. and to obtain our deed the land has to be split. Another round of potential problems then start, The house has to inspected the architects drawings have to match the house, Unfortunatly the boundaries were often measured wrongly, and this means walls and fences have to be moved!. Permits for wells are needed, and also the road which feeds our close of seven plots had to have kerbs and tarmac. More money to be payed out.......more solicitors fees will no doubt be needed

Some may say you may be more secure on a shared plot, as it may be more difficult for a A Greek to take proceedings against several owners. In other words safty in numbers!!

joandjelly


Joined: 24/02/2008
Posts: 2953

Message Posted:
28/06/2011 18:37

Troodo I believe what Hans means is that the shared deed given to each owner only specifies the amount of the share, i.e. 1/10th, of the whole rather than plot a, b, c, d, etc. In other words it does not specify your actual plot just your share of the whole.

mia100max


Joined: 19/03/2008
Posts: 404

Message Posted:
28/06/2011 18:39

Yes, I have heard this too. It would be easier to target one particular owner but as they say, safety in numbers.

mia100max


Joined: 19/03/2008
Posts: 404

Message Posted:
28/06/2011 18:41

JoandJelly, my neighbours have theirs & it specifically shows their plot on the land.

joandjelly


Joined: 24/02/2008
Posts: 2953

Message Posted:
28/06/2011 19:49

Oh ok, friends of mine have theirs and it doesn't!!

scoobydoo


Joined: 10/11/2008
Posts: 2434

Message Posted:
29/06/2011 05:56

We have had 2 houses on sites with shared kocans in Bellapais and they both showed that we owned a portion the last one being 1/9. It did not show our individual house but the site as a whole including all access points, pool and other communal areas of which we owned 1/9th of.



We have also sold both houses with no problems whatsoever.

cyprusairsoft



Joined: 22/06/2009
Posts: 2066

Message Posted:
29/06/2011 13:23

Several solcitors have said there is no problemwith a shared deed its usually done because the builder cant pay his tax etc.

I have a shared deed on a plot of four one of the others has his shared deed and the thother 2 are getting the deeds soon the land is parcellised each house havin a 1/4 of the plot and i had to put an add in paper

for 30 days the other owners not bothered of course and we are quite happy.

a shared deed doesnt have to be a problem and if you are feeling generous you can pay your builders tax for him and get a full kocan!!