We have an all to common scenario where our developer has gone bust and disappeared. We have gone through all of the steps with Peyia Municipality and are now dealing with the receivers who are in the process of splitting up the title for the single plot into seven. Five have villas, the other two have not broken ground. The properties were purchased in 2006.
The receiver has sent through a valuation form against the seven plots and requires signatures by the legal owners against those valuations.
These valuations differ considerably from the values of the original contract, in our case they are significantly higher.
When and if the titles are split, we would want to transfer them to our ownership.
My questions are with regard to tax.
- Will transfer tax be applicable as the developer has gone bust?
- If transfer fees are applicable will the be based on the contract value or the value on the valuation forms?
Many thanks in advance.