No.274
Q.: Dear Mr. Loizou,
For many years we have been reading your very helpful
advices on different matters. As you are not fully aware
of the details concerning photovoltaic, we would like to
give you some information's, as it is quit new in
Cyprus. It is now a very good investment in green energy
to produce electricity from the sun since the Government
finally subsidises all the electricity one produces from
a photovoltaic system and sells it back to the grid. EAC
pays together with a 15-20 year contract between 22.5c
and 38.4c per KW/h which leads to a profit of 14-19% per
year from the invested capital. A 55% grant for the
equipment is only given if the installed system is
facing perfectly south, but also without the grant it is
very profitable. For example a 10 KW system which costs
less than 40.000 EU produces between 16500-17000 KW/h
which one can sell back @38.4 c (6500 EU/year) Beside
the financial advantage it is very helpful for the
environment to save CO 2 emissions.
It looks like Cyprus will see less tourists in future
but more and more sunshine hours. The maximum size of
photovoltaic systems for business is limited to 150 KW
in Cyprus.
Kevin Hill
A.: Thank you for your information Kevin. The point here
is whether it is worth having one for a holiday home,
which is used periodically. As I have said I know very
little on the subject, but what you say makes it worth
examining.
Regards,
A.P. Loizou
3/29611-td
2.2.2010
Νο.275
Q.: Dear Mr Loizou.
I follow your column in the Cyprus Weekly and enjoy
reading your articles.
The ongoing issue of registering committees, I find your
advice very confusing and somewhat incorrect.
You categorically state you have to register with the
Land Registry and must have title Deeds to do so to have
legal status, in many of your articles; latest 4
December 2009.
What you don't say in your articles is that the Land
Registry will not accept any new registration whether
you have tile deeds or not. Your office have confirmed
this to me in your last email to me dated 15/10/2009,
why do you not give this information to your readers?
The Land Registry also categorically states, there is no
need to register one's committee; as they have stopped
to accept any new registrations for the past five years.
Also stating that if the committee is properly elected
by the majority owner in an AGM that is properly held,
with properly recorded minutes, it is considered to be
legal and binding on all owners. With this information I
have found a lawyer that also agrees with the Land
Registry and taking non- payers to court.
It's not ethical for you not to inform your readers
about the Land Registry policy and feel if you don't, I
will write to other columnist that will.
Regard
Eva Wetzig
A.: I object to the tone of your letter. You can do
whatever you want and I am not one to be blackmailed.
Please bear in mind that each party has a legal right
for libel. In any case your solicitor can get in touch
with the internal legal advisor of the Lands Office from
who I got the information.
Regards,
A.P. Loizou
3/29605-td
2.2.2010
No.276
Q.: Mr. A. Loizou,
I hope you still remember my first letter and I thank
you for your answer. I have had two operations and been
in and out of hospital six times so far. That's why I
was not able to think of other problems. Better now.
You adviced me to have my boundaries demarcated by the
Lands Office. I know that the neighbours have already
done that. They threaten to take (about) 2 m width of my
land over the nowadays boundaries.
Exactly on that part of my land I have all the important
and expensive technology: 2 electr.poles, ~ box and
cable, water meter,pipes for the house and irrigation
a.s.o.
Also I have planted trees and bushes all the way near
the boundary. What about all this?
I still ask, is it not seller's responsibility to mark
the right boundaries as it was said in the sale
agreement?
Is it possible that his heirs can change all that after
such long time? Not in our country!
What can I do, if anything?
Yours sincerely
Eeva Puittinen
A.: Make sure that the boundaries you were shown are the
ones so demarcated by the Lands Office. You can submit
an application with the Lands Office, on the subject of
“disputed boundaries” and the Lands Office will place
the demarcation in your presence.
If you sales contract states that the seller bears
responsibility on the demarcation and provided this
obligation passes (in the sales contract) to the heirs
you have a point for compensation from them.
Regards,
A.P. Loizou
3/29606-td (2.2.2010)
No.277
Q.: Dear Mr. Loizou,
Having met you on a few occasions, I have to say that
you are one of the few people involved in the real
estate industry that I feel I can trust, and like so
many others, I have respect and admiration for you in
your tireless efforts to solve some of the numerous
problems in the property market here.
I myself have a question which I hope you will be able
to answer.
We purchased an apartment on a small complex in Peyia,
consisting of 14 two bed apartments with a communal
pool. The price we paid was CYP65,000 and the sales
agreement was signed on 17.02.2003. We have now been
informed by the developer that the title deeds are ready
for issue, and we are being asked for payment. For your
information I have copy pasted the email from the
developer which is at the end of this email
We have asked our lawyer how this figure was calculated,
and she told us that she has been to the Inland Revenue
office in Paphos to ask for the formula for working out
IPT, but told us that they cannot explain to her how
they work it out, and that no one is really sure what
the formula is!
I know that any property under the value of CYP100,000
or €170,000 is exempt from IPT, so my question is, why
is the developer charging us IPT? In todays market the
property is worth below the threshold of IPT, and even
if we do have to pay anything, how does the developer
work out how much?
The developer also said in his email that any owner that
doesn't pay for the deeds by March 2010 will be charged
€500 per month for management costs, which I am sure is
totally illegal, and our Lawyer agreed with us.
Below is the email we, along with the other owners,
received from the developer. One owner paid CYP39000 for
his apartment which is identical to ours, yet the sales
agreement was signed eight months after ours.
I do hope you can enlighten us on this, we are aware
that some of the developers have been overcharging on
IPT, and we would very much welcome your comments before
paying any money.
With Kind regards
Philip
A.: Thank you for your trust in me Philip. Independently
whether you own property or not less than the tax limit,
because the property is registered on the developer and
he is liable, he has charged you the property tax. So
provided the developer’s maths are OK (the value as at
1.1.80 is stated on the title deed) I suggest you pay
the tax, get a receipt that what you paid is the
property tax and after transfer, claim through the
Income Tax Office a refund. So you are not “charged” as
such, but it is a hassle. Looking at the developer’s
maths and since your property was worth £65.000 when you
bought it at 2003, it must be less than 1.1.80 value of
the same – Check the 1.1.80 value as this is so recorded
on title and as a maximum adopt 4‰ (four per thousand x
6 years). Please bear in mind that the refund applies
only if you deposit the sales contract with the Lands
Office. Also note property tax should apply on the date
of delivery and afterwards and not before, unless you
sales contract states otherwise.
The charge of €500 p.m. is a joke. Ignore it.
Regards,
A.P. Loizou
3/29610-td
2.2.2010
www.aloizou.com.cy
www.aloizou.ro
www.aloizou.ru
ala-HQ@aloizou.com.cy
