The Specific Performance Law

elko2



Joined: 24/07/2007
Posts: 4400

Message Posted:
15/06/2008 11:57

( As published on 10 th March 2007 Cyprus Today, page 17)

THE SPECIFIC PERFORMANCE LAW MUST BE AMENDED



The Specific Performance Law is doing a great deal of harm to the building industry in the TRNC and is only helping the unscrupulous builders to get more money from investors or frighten off others from north Cyprus.



Many new houses are sold off plan and hardly any house is finished on time. What is the use of stipulating penalty clauses in the contract for late delivery if it is not going to be enforced? It is very hard to find a builder/developer who is afraid of such a contract. Why? The simple answer is because of the existence of Chapter 232 “Sale of Land (Specific Performance law)” which was passed on 2nd April 1885, in the early days of British Colonial Rule. It has remained intact ever since.



This law served its purpose at the time it was enacted but now it is doing untold damage to the building industry as well as the image of the TRNC in general. According to this law, if an Sale Agreement is in writing and it is lodged with the appropriate Land Registry Office within 21 days, in case of a dispute the buyer can apply to court to get an order to have the immovable registered in his name, in other words a Specific Performance Order, provided he does so within two months of the agreement. Otherwise the court cannot give such an order.



At the present time, normally an agreement is made between a Vendor and a Buyer. Appropriate deposit is put down and then monthly instalments are paid or money paid in stages as the building progresses. At the end of the day, never mind the late delivery, the builder/developer finds many reasons to ask for extras and make it known that the buyer will not get his deeds without such payment. If the demand is grossly unreasonable, the buyer goes to see his advocate only to find out that because of the abovementioned law, he can only ask for compensation but not for specific performance i.e. the issue of title deeds. The stipulated time limit of two months passed ages ago. The choice is to bow in to demands of the developer or sue for compensation and start all over again, including a fresh application for Permission to Buy which entails at least two years waiting for the decision of the Council of Ministers. Furthermore, even if you win the court case and awarded compensation, a new struggle will begin to collect it from the other side. The unscrupulous builders/developers who may know about this law can make unreasonable demands. At best, the vendor may threaten the buyer with the cancellation of the contract if he proves to be a “troublemaker” like asking awkward questions about the issue of title deeds for the building that was completed years ago. Does this ring a bell? I bet all this is not unfamiliar to the expatriates in the TRNC who have fallen in love with the TRNC and the hospitality of the local people.



So what is next? I think the way forward is to get organized and press the government to amend this law. It would be such a simple matter to remove the two months time limitation. Once the sale agreement is lodged with the Land Registry Office, it should afford some security to the buyer in the way that no mortgage or encumbrance should be put on the relevant property without the knowledge and permission of the buyer.



This law was amended and the two months time limit removed in south Cyprus. We know that there are many problems in the south too but at least the careful investor has the law on his side. There are certain things that a developer has to do before title deeds can be issued. If the developer fails to do what he has to do, the court is empowered to appoint somebody to do it on behalf of the developer so that the buyer can get his title deeds eventually.



İsmet Üstüner, B.Sc., M.Sc.

Note: The writer is an electrical engineer and not a lawyer b

Bradus


Joined: 25/02/2007
Posts: 2641

Message Posted:
15/06/2008 12:03

Elko2,

Very interesting. Thanks for bringing this to our attention.

Turtle


Joined: 28/05/2007
Posts: 2669

Message Posted:
15/06/2008 12:28

Elko2

Interesting reading of your article, just tells me what I should have done from the start and that is DO NOT BUY OFF PLAN.

wynyardman



Joined: 15/12/2007
Posts: 4580

Message Posted:
15/06/2008 12:35

Elko2,



A comprehensive explanation of what WE ALL should be campaigning for!

Thank you,



wynyardman

kibrissibel


Joined: 18/02/2008
Posts: 562

Message Posted:
15/06/2008 19:20

Excellent article Ismet. Please sign the petition to amend the specific performance law everyone! Link below.



http://www.ipetitions.com/petition/petitioncyprus/index.html

wynyardman



Joined: 15/12/2007
Posts: 4580

Message Posted:
18/06/2008 08:10

DO NOT BUY OFFPLAN PROPERTIES UNTIL THE GOVERNMENT AMMEND THE SPECIFIC



PERFORMANCE LAW OF 1885.



YOU MAY NEVER GET THE DEEDS TO THE PROPERTY YOU PURCHASED.



SIGN THE PETITION



wynyardman

Pipie


Joined: 05/01/2008
Posts: 5499

Message Posted:
18/06/2008 10:35

I am begining to think that whatever the case , will we ever get our deeds , look at the people who have deeds at the moment very few .

hollander


Joined: 30/06/2008
Posts: 11

Message Posted:
30/06/2008 21:51

Don't forget (click URL): http://tinyurl.com/6bxext

hollander


Joined: 30/06/2008
Posts: 11

Message Posted:
30/06/2008 21:53

Sorry, an error in my posting (don't know the facilities of this board yet :-( .

hollander


Joined: 30/06/2008
Posts: 11

Message Posted:
30/06/2008 22:01

Slogan (click URL) : http://tinyurl.com/6fb43l



Petition (click URL) : http://tinyurl.com/5spyhx

wynyardman



Joined: 15/12/2007
Posts: 4580

Message Posted:
30/06/2008 22:03

Elko2,



Tell them! then tell them again in case they did not hear you clearly the first time.......now

tell them again in case they did not understand the first time or the second time......



Now TELL THEM ONE MORE TIME..........



Sign the petition to ammendment to The Specific Performance Law of



1885............without which



YOU MAY NEVER GET THE DEEDS TO YOUR PROPERTy!



wynyardman

PtePike



Joined: 20/05/2008
Posts: 2334

Message Posted:
30/06/2008 22:35

Pipie,



Just a thought, but if the TRNC authorities are messing you around and your property is legal pre-1974 title, you can get your title deed by completely bypassing them. Take your original contract, passport and a scale map of the plot to the Kyrenia District Land Registry in Acheon Str, Nicosia. They will check that the property is legal to buy and not Greek Cypriot owned with claims made against it. Assuming all is in order you should receive a kocani (title deed) and certificate of ownership verified by the Cyprus government. This is internationally resognised and also means you should later be able to sell the property on the open market without having to involve the TRNC in any way

wynyardman



Joined: 15/12/2007
Posts: 4580

Message Posted:
30/06/2008 22:41

The poison stench of Scaramanger! Me thinks!



wyn