The unrecognised problem faced by property sellers

Buyers often complain about the inability to transfer units, either due to illegalities or due to titles not being issued, but on the other hand buyers themselves may not attend transfers, even when the titles exist.

The result of the non-attendance of buyers is that the seller is charged with the operating costs of the property, possibly the maintenance of the company, the submission of bills, the tax of €300/year of the company, the fee of auditors and submission of bills, the payment of common expenses and municipal taxes and so on.

Due to the current mentality, it is almost impossible to convince buyers, who are not cooperating, to come to complete a transfer, since they would have to pay all their debts, such as taxes, transfer fees and so on.

Some resell their right to buy to third parties by transferring rights, in most cases without the knowledge of the original seller.

While the buyer has the right to apply through a court for the execution of a transfer by filing the sale document, the seller would have to undertake court proceedings, which include the payment of all costs that are debts of the buyer, the lawyer’s fee, court costs and perhaps in many cases the capital gains tax, and after obtaining the issuance of a court order must wait for the buyer to cover all the costs, set by the sale memo (prohibitory order) to the alienation of the property under study.

My office has waited for buyers to come after the issuance of the titles for up to 15 years and in the meantime the seller waits. Legal advisers tell us to make the transfer and place a memo, an obstacle to the buyer’s ownership, until they pay.  But is this a solution?

There is the option for a seller to close the selling company, but this causes other problems. Who will transfer the property when and if the buyer arrives, if the selling company does not exist?.

What about an 85-year-old client of ours who has been waiting for a buyer to arrive for eight years?

In the case of foreign buyers they often disappear.

The issue is serious and is to the detriment of sellers who are in a situation of long-term uncertainty.

Maybe a solution is some kind of summary transfer and the buyer can object afterwards?

The prevailing opinion in the real estate market is that the seller is to blame. In reality, however, a large part is the fault of the buyers.

What strikes me is the silence from developers who face multiple problems due to the situation, while bodies, such as the Chamber Of Commerce and Industry, the Employers and Industrialists Federation and the Technical Chamber also remain silent.

I propose the creation of a Deputy Ministry of Interior. However competent the current Minister of the Interior may be, it is humanly impossible for him to deal with such and other issues concerning the lands registry and town planning matters.

Do I expect any developments in this regard?  No.

Antonis Loizou & Associates EPE – Real Estate Appraisers & Development Project Managers, www.aloizou.com.cy, [email protected]