Mortgage payment in arrear

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Νο.261
Q.: Dear Mr Loizou,
I wonder if you could help us with some information. Some years ago we built a residence with an attached apartment for our visitors We would now like to separate these and have 2 separate titles.
We have not yet been able to obtain the final/completion certificate on the property owing to potential changes in road layouts affecting our land Is it possible to get the division prior to obtaining the final certificate, and if so what do we need to do?
Regards, S. Brennan


A.: No – You must get first the certificate of final approval. Then you submit an application for a division permit. If you are in accord with the regulations, there should be no major problem other than time!
Regards,
A.P. Loizou


3/29561-td
19.1.2010

No.262
Q.: Dear Mr Loizou,

A friend of mine, recently widowed, has applied for probate, and for the husband’s half share of the house to be transferred into her name.

She has also been informed the title deeds are ready for collection.

She has now been told that she will have to pay for the title deeds transfer for the house at today’s price, even though she and her husband bought and have lived in the house for many years. The house will be valued at the time probate goes through, and that she will only get one allowance, so increasing and doubling the cost of transferring the deeds, as she is now the sole owner of the house.

Is this correct ? As it cannot be right to deny her the husband’s part share and increase the cost after all these years.

Yours sincerely,

Peter Davis


A.: If there is a deposited sales contract, the Lands Office should adopt the purchase date value (or actually the purchase price). If not, there is a problem having to prove when the purchase actually took place. Since she is the sοle owner, she has to pay full fees regrettably. If the husband was alive, things on this account alone would have been different.
Regards,
A.P. Loizou


3/29562-td
19.1.2010

No.263
Q.: I bought a Limassol Apartment in mid 2007 from one of Cyprus's major Developers. At that time I was asked for CY£500 in respect of 2 years common expenses in advance, which I duly paid.
Towards the end of 2009 I was advised by the Developer that I owed nearly Eur 3,500 in unpaid common expenses!

I asked for a breakdown of the expenses and found many faults including (but not limited to):

- They are charging the equivalent of a Gardeners annual salary for cutting a small lawn
- Electricity costs were Eur15,000+ in 2008 and Eur 5,900 in 2009 which is still crazy
- Water charges were Eur 6K+ for each year 2007 & 2008 and were exactly the same amount to the cent for each year (which is impossible). The water bill for 2009 is 25% of each of the previous years!
- The management fees are Eur 25K p.a. for 2007 & 2008 and Eur 12K p.a. for 2009

I have queried the expenses many times and do not get a reply. Every now and again I am threatened with interest on late payments.
I am willing to pay the correct amount but do not wish to set a precedent by paying an inflated figure.

My questions to you are simple and are as follows:

1) Are common expenses subject to an audit by a certified accountant?
2) Are developers restricted to the level of management fee they can administer?
3) If I am allowed to have an audit taken by my accountant are the developers liable for the cost of same if their figures are incorrect?
4) What other options do I have?

B. Darling


A.: Costs should be a matter of fact. So you can check the bills paid either yourself or through the use of an accountant, whose cost, I suggest, should be shared by all residents. I find, based on what you say, high the charges. We have a similar problem with one of the projects we manage and from some residents who refuse to understand that the bills are there, an audit has been carried out and all receipts/payments/bills etc are available at the site office for anyone to review. Yet some people have a fixed idea of their own how much the cost should be and not the actual. With respect now on your action, it will depend what your sales contract/general agreement says. A management fee should be a reasonable one, depending on the service provided. So it is difficult for me to suggest to you any action other than sending someone to check the bills and the management fees cannot be unreasonable, whereas water and electricity bills etc are based on the bills produced. As an indication for a 50 house unit set in an area of 70.000 sq.mts., we charge €290 p.m. management fee plus expenses (do we work for nothing Mr Darling?).
Regards,
A.P. Loizou



3/29569-td
19.1.2010

No.264
Q.: Time to go Mr Loizou? Not possible. Who will look after us who have problems with real estate and towards which we cannot trust many other professionals including lawyers etc. Myself, being a local-Cypriot, can appreciate the special anxiety of the foreign people, your main problem writers in your Q+A column.
Maria Londou

A.: Who said anything about leaving Maria. I am here to stay for at least 3-4 years (with God’s permission!!).
Regards,
A.P. Loizou

No.265
Q.: Bank problem – I note what you said in your Q+A column for Mrs (x). Did you manage to help her dear Mr Loizou since I have a similar problem.
Jane Harris

A.: Not directly but a letter I got from her, it appears that things are moving. It appears that the publication of her problem with respect to the Bank, must have been noticed. Not bad I would say.
Regards,
A.P. Loizou

No.266
Q.: Hi Mr Loizou. I am back from Ireland. Can I send an Irish whisky to you as a thank you gift for your help?
Helen

A.: Irish whisky as I have said 2 years ago is an acquired taste. Make sure that you send two small size bottles, because I want to keep on the good side of the editor of this lovely paper!! – Many thanks.
Regards,
A.P. Loizou


3/29567-td
20.1.2010

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