Problems with Builders & Solicitors

Turtle


Joined: 28/05/2007
Posts: 2669

Message Posted:
16/03/2008 12:49

It seems that when reading posts on the forum that most buyers have a problem with getting information out of builder/solicitors.

It would be interesting to know what excuses they have given in the past for late completion dates.

It seems simple to me that its in thier own intrest to get these projects finished quick so they get paid ?

Bradus


Joined: 25/02/2007
Posts: 2641

Message Posted:
16/03/2008 13:21

Towards the end of construction there is usually the least amount of money left to be paid. Its the beginning and middle payments of the development that reap the most for the builder. So the builder often moves on to start further developments elsewhere on the island or begins stage 2. As you can see from the Kavenkoy thread even if you have clauses in your contract for late penalties, it is rarely enforced. I had such a clause but luckily didn't need it and as someone as already said contacts appear not to be worth the paper they are written on here in the TRNC. They never will be until the government enforces and amends the law to protect purchasers.

Turtle


Joined: 28/05/2007
Posts: 2669

Message Posted:
16/03/2008 17:04

In that case Bradus when the boots on the other foot can we hold back payment when due or hold some back on final payment ?

If the contracts are worth jack s**t then surely we can do as they do,

TimothyCadman


Joined: 13/12/2007
Posts: 1040

Message Posted:
16/03/2008 19:07

The contracts you signed are legal and binding. They are enforceable in a Court of Law.



The problem lies with the judicial system and delaying tactics from the builders solicitor.



A typical example: You sue the builder. Your day in Court is likely to be 3 or more years away. In this time your builder ignores you. He won't finish your property. He won't issue any sort of title deed. You get to court. The judge finds in your favour. You're very happy. The builder isn't. He ignores the court order, so you have to sue him again. You get judgement. Now he has to do something. He does. He closes his company and restarts as a new one. So you're left with an unfinished property, no title deed and around £3000 out of pocket to sue him. Is it any wonder that many don't bother!?

Turtle


Joined: 28/05/2007
Posts: 2669

Message Posted:
16/03/2008 20:03

So why are we advised to employ an independant solicitor ?

Why are we signing these contracts and spending money on what is basically a waste of time and unenforceable.

Does anyone actually know what legal rights we have ?

jmg171


Joined: 19/05/2007
Posts: 183

Message Posted:
16/03/2008 20:21

I would be interested to know !! how many purchasers has received compensation for late handover??

According to my contract for every delayed month on completion of my apartment the seller ( Developer ) will pay £500 per month.

The purchaser will deduct these amounts from final payment.

jmg

rtddci


Joined: 29/12/2007
Posts: 842

Message Posted:
16/03/2008 20:49

Turtle

You have summed up the problems of buying property in the TRNC and one reason for these forums and one of the reasons why the Home Buyers Pressure Group was formed. Have you seen the latest from the government re paying the 5% KDV (VAT) on taking posession of your property and not on getting the title deeds?

See Cyprus Today 15/3/08 http://www.hbpg-trnc.net/prelease.html

I despair

Martin

elko2



Joined: 24/07/2007
Posts: 4400

Message Posted:
16/03/2008 21:23

Are the contracts worth the paper they are written on?

Pre registration almost worthless. After registration its worth something.



If you have your contract registerred, the developer will not be able to call the tunes any longer. He cannot mortgage it and he cannot sell it to someone else. However he may still refuse to finish the development and he may still refuse to transfer the title deeds. The Buyer cannot sue for title deeds because of the Specific Performance Law but you can sue for compensation and the property that you got registered is a good security when you get the court order for compensation. Thus now it is almost a level playing field. All the Buyers have to do now is be careful and not pay too much in advance. Now you can even insist for compensation for late delivery.



The next step should be a push to get the Specific Performance Law amended so that the buyers should be able to sue the develpoer for the title deeds.

ismet

elko2



Joined: 24/07/2007
Posts: 4400

Message Posted:
16/03/2008 21:34

Re. msg. 7



KDV (VAT)

Cyprus Today article on KDV is misleading and wrong. KDV was introduced in 1992 by law number 47. So how can the paper talk about a law dating back to 1959?



I have seen the directive sent out by the Tax Office to accountants asking for the KDV to be paid when the lkeys are handed over and this directive was based on law 47/1992 temporary parag. 1(2). This parag. referred to buildings started before the passing of this law and authorized the tax office to deal with KDV for part of the building constructed after the passing of this law. Thus it has nothing to do with collection of KDV at the time the keys are handed over and thus this directivre has no legal basis and is null and void.



Furthermore, KDV is payable by the builders and they may have a right to get it from the Buyers if their contract stipulates it. So I suggest buyers do not pay KDV until the builder is to transfer the title deeds and only after they are shown a receipt that it has been paid.

ismet

pilgrim



Joined: 11/05/2007
Posts: 1404

Message Posted:
16/03/2008 23:24

Thanks Ismet,will save this advice.

orangekazzie



Joined: 31/07/2007
Posts: 1091

Message Posted:
17/03/2008 00:30

Hi Jmg

As Tim said earlier it may say these things in your contract but trying to get the money from your builder will cost you a lot more in legal fees than the £500 a month compensation which you will never see.

Karen

bertiebadger


Joined: 06/07/2008
Posts: 6

Message Posted:
21/09/2008 00:10

I have heard so many problems with bulliders and developers in N Cyprus. It seems that they never pay any compensation and if you try to get them to pay you will find they have no money & no assets. Buyers beware!!! I have heard that Nesa Construction who are building Marina View/Discovery Bay/Muflon/Sweetwater plus others , have not finished any properties and have re-located buyers from other sites then asked them to pay lots more money. Unwins are a complete waste of space so beware - they will be happy to take your money any then they are not interested after that! What does anyone else think?

girne 29


Joined: 06/12/2007
Posts: 1488

Message Posted:
21/09/2008 14:12

jmg



forget about the contract when it comes to completion,and just grin and bear it.

Not all are very late anyway.Just make allowance of at least 6 months delay in your plans.

As regards compensation ,its nearly impossible to claim the penalty from builder as he will blame things outwith his control.

For example your house is 6 months late ,the builder just says his side was finished but had to wait on electric board fitting meters,therfore delay due to electric board.Fact that builder didnt apply till last minute doesnt matter.

Same with water connection.



Dont make the mistake of believing estate agents stuff about legal system being the same as UK, thats just in theory.In reality you have no practical recourse



Just try and chill out ,wait things out, and enjoy your time in NC, anything else is a waste of time.

baabaa


Joined: 01/08/2009
Posts: 3

Message Posted:
01/08/2009 23:18

Hi i am a new member on this forum and have a property on discovery bay (well half of one) is anyone else in the same situation on this site? if so would like to get into contact my email is brownhouse.farm@live.co.uk

mint1955



Joined: 30/05/2007
Posts: 988

Message Posted:
01/08/2009 23:22

SweetwaterBay is not being built by Nesa construction. All is well there with building nearly complete and everything has gone very smoothly. We have fantastic facilitlies all nearly finished and a great management company about to take over from the builders.

Turtle


Joined: 28/05/2007
Posts: 2669

Message Posted:
01/08/2009 23:45

Wow I started this 16 months ago.

AlexF065


Joined: 07/09/2009
Posts: 271

Message Posted:
09/09/2009 00:14

Ismet

I notice the date of your post on this subject was last yr

can you tell me honestly have there been any improvements?

Are their any specific builders/Developers that should be avoided?

Is it possible for a non TC citizen to buy pre 74 either TC owned or international owned land?

If the answer to the above is yes how much can a person buy 1/2 to 1 doldrum?

Hope to see a reply

Molly


Joined: 30/08/2008
Posts: 299

Message Posted:
09/09/2009 15:15

Post 17



There are a great many builders and developers to be avoided



No nothing has changed since last year.



You can buy anything but whether you will receive permission and title deed is another matter.



It's a donum (approx 1/3 of an acre)!

elkiton



Joined: 15/03/2009
Posts: 514

Message Posted:
09/09/2009 15:34

message s 6,12,13

just to set the record straight

Having takn a builder to court through the whole process in the recent past, I can state contrary to what you generally read here that in my personal experience :-

a) the contract is a very valid article, despite what your builder and other contributors say.

b) it is treated seriously by the judiciary, forms the basis of the case and is examined paragraph by paragraph in the court, then the Judge makes his decision on who broke what clause in the contract..

c) Judgements are given for the plaintif to withhold contractual monthly damages for late completion from the final payment, plus court costs.

d) injunctions are granted where it is likely that the builder will deliberately re-mortagage.



Can only speak for myself, however it is not 3rd hand disinformation.

Also, not willing to engage publicly in argument here or name names.

Regards

tonyE

AlexF065


Joined: 07/09/2009
Posts: 271

Message Posted:
09/09/2009 15:59

Thanks for the reply Molly

so would you advise renting before starting to purchase?

Is that due to being in "close" proximity to a "military" base or just cos you are a Foreigner

would it be any better if you were in situe so to speak and not in the UK

yes a donum is approx 1/3 acre

It is I have found as i have been looking difficult to get any details about Turkish building Regulations?

is that due to the fact that there are none? or are they just really obscure



Sorry to be pernickity but i really do intend to do lots of looking around and be in a position of knowlege before i decided to buy after looking at things on this very very helpful forum

minertor



Joined: 14/02/2009
Posts: 1238

Message Posted:
09/09/2009 16:32

My contract stated that completion was when all electric and water were connected. The completion date was end of Nov. 2004. We moved in on Dec. 6th 2004. We had no electric but the builder had done a deal with a neighbour and had run an extension to their property. The electric was free to us but we couldn't use the washers, Clothes or dish or the immersion. We were awaiting a meter. We were connected on Feb. 12th 2005. According to our contract we were owed £1250. I don't know if I would have got it had I claimed, in the event I didn't. I thought our builders, Kibris Insaat, had done all in their power to fulfil the promises they made.

We had the same legal advisor, Lawyer at Cyprus. In retrospect, I have no complaints regarding his handling of the sale either. I did have some harsh words, as is my wont, with both builder and lawyer at time to time but generally am satisfied.

Milou


Joined: 15/10/2007
Posts: 425

Message Posted:
09/09/2009 17:00

I live at Sweetwater Bay Tatlisu



I cannot agree that we have a fantastic management company - presently we are fighting for accountability, transparancy and openess - our developer gave our management company a three year contract but it did not state the terms and conditions - we are still fighting....

regards

Moira

girne 29


Joined: 06/12/2007
Posts: 1488

Message Posted:
09/09/2009 20:13

No excuses, just dont answer any of your e-mails.

HildySmith


Joined: 02/07/2009
Posts: 1708

Message Posted:
16/09/2009 20:19

I have a contract signed by the builder Cafer Yucelgazi and myself in 2006. There is another contact signed by Cafer as the builder and Hasan Sungar as the landowner in July 2006. I was assured by my advocate Mustafa Sener that this tripart arrangement/agreements between, me and Cafer ,and Cafer and Hasan, was to protect me. However it appears that my contract has not been registered and the contract between Hasan Sungar and Cafer stated it could be annulled after 30 months. I paid an 'extra £8000' in March and was assured that the house woul be finished by 29 September 2009. Cafer now says he has no money to finish the work.

What do I do????????

HildySmith


Joined: 02/07/2009
Posts: 1708

Message Posted:
16/09/2009 22:23

ANYONE got any suggestions