Questions for Ismet - Charges on Individual Apartments

Pogle


Joined: 28/08/2008
Posts: 1536

Message Posted:
08/08/2010 21:39

Ismet,

We have charges on 14/36 apartments on our site. My understanding is that the charge is against the land and not the property which has since been built on it, though the creditor gets this too. If we have a block of apartments ( 4), 2 have deeds and 2 do not - can the creditor claim the 2 deedless properties which are in effect built on the same piece of land as the properties with deeds? Thanks for any advice.

elko2



Joined: 24/07/2007
Posts: 4400

Message Posted:
08/08/2010 22:17

I am not quite sure about the question. My understanding is that a bank has a mortgage on some land. That land must have a title deed. There is no land without title deeds in Cyprus. There can be no new mortgage on any property after "registration". so presubamly the mortgage was in place before the registration if any. Hence the mortgage is valid on the land in question and anything built on it.

ismet

Pogle


Joined: 28/08/2008
Posts: 1536

Message Posted:
08/08/2010 22:42

Hi Ismet

The charge/memorandum is additional security by a bank against a loan the constructor has on another site. All the properties on our site are registered and the charge was placed on only the 14 properties without deeds in January this year.



The question is how can the bank stake claim to a piece of land ( piece of land A) that has one apartment on it without deeds and one above it that does? Thanks mel

elko2



Joined: 24/07/2007
Posts: 4400

Message Posted:
08/08/2010 23:13

sorry, not clear again:

1. "charge/memorandum"-what do you mean? Is it a mortgage or a memorandum?

2. "14 properties without deeds"- every property has a deed, either as a field or as individual houses. So what do you mean? Are these 14 properties the unsold and unregistered units?

ismet

Pogle


Joined: 28/08/2008
Posts: 1536

Message Posted:
08/08/2010 23:44

The constructor has a mortgage/ loan on another site, the bank have placed memorandums on 14 apartments on our site as additional security on this loan, these 14 are either awaiting ptp or the constructor has not been able to transfer deeds. The other 22 apartments have possession of their deeds.

Thanks

elko2



Joined: 24/07/2007
Posts: 4400

Message Posted:
09/08/2010 00:23

I think now I understand it. so as I understand it now, the bank gave a loan to a constructor and took out a mortgage on a land. Then the bank obtained a judgement against the constructor but believing that the mortgaged property is not sufficient to meet the debt and thus the bank has put a memorandum on the property of the contructor on another site which has houses sold and registered but title deeds for some not given to the buyers yet.

Yes a memorandum can be put on "registered" property but my belief is that if it is defended properly in court the "registration" should have priority over the memorandum which came after the registration. This point has yet to be tested in court including the High Court properly yet.

ismet