Property Title

Archive for January, 2011

Obstacles Involved in Buying Cyprus Property Without Title Deeds

January 28th, 2011

Builders and developers in Cyprus have been getting bad press due to the “process” to acquire title deeds which can take up to 10 years or more! You would assume that anyone that pays for their property in full would be issued title deeds. However, this is not the case and I will explain what can happen and how to safeguard yourself when buying property in Cyprus.

In Cyprus, owners do not actually own the property or enjoy full benefits of ownership. Owners do not have the right to sell or transfer their property to anyone they wish, including heirs, without reference to the title deed holder who is most often the developer. To sell a property, the owner needs to cancel or transfer his contract of sale at the Land Registry office with the cooperation of the developer. Then the developer enters into a new sale contract with the new buyer. However, the ability to sell is not automatic. A special clause in the original contract of sale is needed which should limit the cancellation and transfer fee charged by the developer to a ‘reasonable’ amount. Without that clause, those wishing to sell their property are at the mercy of the developer.

Many buyers have been charged much greater amounts than the actual costs incurred by the developer to cancel their contract of sale. This results in eliminating any profit resulting from the sale of the property. An example of this is a case reported to Cyprus Property Action Group where a property developer is demanding CY?14,647.45 from a buyer claiming it is for ‘immovable property tax’. The property was purchased in 1982 for CY?37,270 and is still registered in the name of the property developer. The title deed is still awaiting transfer until the demand has been met. In other cases the developer can still get a mortgage against the land a buyer’s property is built on. It is used as collateral, without the owners knowledge or consent. This prevents owners from selling their property because no one is going to buy a property knowing there is a mortgage on it.

There are also some problems obtaining mortgages on resale properties without title deeds. Anyone that wants to buy needs to have cash or buy a home that has full deeds available. Some developers threaten not to release the deeds in order to demand extra payments or to stifle complaints by clients. At the end of a long wait the developer may not even transfer the property to the buyers and legal action may need to be taken.

Here are some security measures to take until deeds are issued:

Firstly, register your contract with the local Lands Registry Office. The sales contract must be signed within two months from the date of signing of the agreement. This will protect you in any subsequent sale that might follow the deposit date.

Secondly, get a release from the mortgagee. The release should be secured by the seller and it should stipulate that once the deeds are issued the mortgage holder will have no objection in releasing the deeds for transfer.

Thirdly, if you require a bank guarantee you will have to pay 1.8% on the amount of the guarantee. Also, carry out your own search through your lawyer regarding the seller’s financial standing and check his reputation in the local market. Buying from reputable developers opposed to small scale developers is generally a better bet even if prices are slightly higher.

Next, set a date in the sales contract when the developer is bound to transfer the title deeds. Lastly, make a provision in the sales contract that the developer must comply with a request for a resale with a fixed charge of no more than ?1,500 so that you can cancel your sales agreement by selling it to another buyer. The original buyer will enter into a cancellation agreement and then the new buyer will enter into a new sales contract with the developer. In some cases the developer may ask the original buyer to cover his tax costs or to provide him with a tax release.

The above measures are not a substitute to having title deeds, but they are appropriate steps to protect buyers during the title deed waiting period. These are ways to ensure a stress free transaction and fully enjoy your property in Cyprus.

By: Cleo Shahateet

About the Author:

Cleo is the owner of Cyprus marketing solutions Ltd. a Paphos based company providing proven internet marketing solutions specializing in property sales in Paphos, Cyprus to families relocating and buying property in Paphos district and surrounding area.

No comments »

Posted in Articles

Tags: Property In Cyprus

Buying a Foreclosure Property – 10 Tips to Help You Succeed With Foreclosure Investing

January 27th, 2011

Whether you will be seeking to purchase a residence to live in or making a actual estate investment, it could be very lucrative and dangerous also, particularly for the novice foreclosure investor. Purchasing a foreclosure involves many steps and demands plenty of upfront study and planning to make it lucrative. Right here are 10 strategies to assist you be successful with foreclosure investment.

1. Come to be Familiar With the Foreclosure Procedure as well as the Distinctive Types of Foreclosures

Foreclosure laws and processes vary from state to state and even county to county, so you’ll have to turn out to be completely acquainted with the laws, funding requirements, and foreclosure methods prior to you take into consideration purchasing a foreclosed home.

You will discover three types of foreclosures you’ll be able to take into consideration purchasing. You will discover pre-foreclosures, exactly where you acquire the home in the owner just before the mortgage loan goes into foreclosure, you will find auction foreclosures where you bid on properties at an auction, and you will discover financial institution owned foreclosures or actual estate owned (REO) foreclosures which are properties that didn’t sell at auction and are now being sold by a loan provider.

Every of these types of foreclosures has their own laws, processes and requirements at the same time as opportunities for earnings and hazards. Buying a foreclosure at an auction may possibly normally be essentially the most profitable but may also be essentially the most dangerous. There’s no chance to inspect the interior with the house prior to auction and also you ought to have cash available to pay in the auction. REO properties are usually the most secure, but you could not come across the deepest discount rates. Negotiating having a property owner within the pre-foreclosure process can outcome in bargains but there are numerous dangers and uncertainties with this particular sort of foreclosure also.

two. Locate a Property Making use of an On the internet Foreclosure Listing Service

There are several solutions to come across foreclosure listings, including via newspaper adverts, looking via data at the County Clerk’s workplace, and through a actual estate agent. Perhaps the quickest and most handy approach to search by way of foreclosure listings is by subscribing to an online foreclosure listing service. These lists are stored up-to-date and will conserve you lots of investigation time.
» Read more: Buying a Foreclosure Property – 10 Tips to Help You Succeed With Foreclosure Investing

No comments »

Posted in Articles

What Do Title Companies Do?

January 27th, 2011

Before one ventures out to acquire a property, one must consider the pros and cons of the said undertaking as there are so many intricacies that it involves. Transactions such as buying a house or leasing a lot must be confronted with proper care and diligence to avoid any unwanted consequences in the future. It is for securing the accurate outcome of any real estate deals that the services of title companies are sought after.

Title companies ensure that the processes involved in property acquisition are proper and lawful. These include securing everything from the first step of choosing a prospective property to buy, up to the final step of transferring the title in favor of the buyer. Primarily, they facilitate the three integral processes in property acquisition namely: property title check, preparation of the property, and title insurance.

Title companies do an “abstract of title” to affirm its formidability. This involves checking for any unscrupulous or unfavorable facts or circumstances surrounding the said title. They determine the legal owner of the property, disclose any unpaid taxes, mortgages, judgments, or liens that will have to be satisfied before the property is conveyed, and specify any existing easements, leases, or restrictions that affect the property. If these are not properly verified, the buyers are most likely to encounter problems such as back taxes, claims, and second mortgages after having acquired the property. If title companies fail to recognize these problems, surely the buyers would have headaches once the title has been transferred to their ownership.

When the title is already cleared and without any impediments, title companies would prepare a Commitment for Title Insurance. This commitment indicates the parties to be insured and the amounts of coverage, current owners of the property, legal description of the property, any requirements that must be met for the insurance to be issued such as a deed to the property. The title companies would prepare all the necessary documentation needed for the transfer and purchase of the property, and shall correct any problems that would arise in the transaction. When all of these are completed, the deal would be closed. The parties would exchange essential documents to convey the title to the new owner. Other tasks that title companies do in this stage are dealing with collateral issues such as leases and rights-of-way, and explaining in a methodical manner the costs to each party. The title company will then collect the purchase money funds from the buyer as well as the settlement costs from each party and pay all of the expenses of the transaction, pay existing mortgages, and pay the seller the net proceeds of the sale.

The last task that title companies undertake is preparing the title insurance. This secures the buyer that he would get monetary reimbursements in relevance to the policy that he got, if in the future a defect or a discrepancy may arise in relation to his property.

Title companies are needed to distinguish problems and come up with solutions in relation to a real estate transaction. It is best recommended that before making a decision to acquire a property, one must seek out the help of title companies to avoid any problems in the future.

By: Maria Faith

About the Author:

When looking fro Real estates, taking a look at Mirabel Scottsdale AZ Houses and New River AZ Homes would be worthwhile.