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Down the slippery slope

Geological map of Cyprus
Source: Cyprus Geological Survey Department

THE GEOLOGY of Cyprus is unique and results from the natural forces responsible for its creation. Over millions of years, the island has been slowly squeezed out of the water as Africa has moved north, pushing against the European land mass by continental drift.

The natural forces that created the island left behind a legacy of riches. For Cyprus’ early inhabitants these included copper, from which the island got its name.

Construction issues

But the natural forces that created Cyprus also left behind a legacy of problems. The most notable of these is unstable land in which landslides are common. In Cyprus, landslides are usually triggered by heavy rainfall, earthquakes, erosion, and human activity. Anyone travelling the island should visit Pissouri, Kinousa or Polemi where they will see the damage resulting from houses built on landslides.

The Cyprus Geological Survey Department (GSD) has mapped vulnerable landslide areas in Paphos District and to a lesser extent, those in Limassol.

Problematic Paphos villages include Agios Photios and Statos, Choletria, Theletra, Episkopi, Marathounda and Armou. Following devastating landslips at Agios Photios and Statos, the Government moved both villages to a new location. Choetria & Theletra villages were also relocated after suffering similar disasters.

The GSD map shows bentonite and mélange landslides. These clays absorb huge amounts of water, expanding by as much as 15 times their original volume and shrinking back as they dry out. The extreme forces exerted as they expand and contract can wreak havoc to anything built on them. Deposits of bentonite and mélange can be found at many villages, including Simou, Drinia, Phiti, Milia, Anadiou, Lasa, Krittou, Marottou, Kannaviou, Melamiou, Ayios Dimitrianos, Nata and Fionikaria.

The Phiti case

A development of 9 villas with swimming pools is currently under construction in the Phiti area on a bentonite deposit and the threat is obvious. Landslides could be triggered by excavations and vibrations caused by heavy construction vehicles, alterations to the surface water flow caused by roads and other hard landscaping, large discharges of water from swimming pools, sewerage problems caused by the non-permiable nature of the soil, etc. These factors may impact on neighbouring areas, damaging buildings, and accelerating nearby active slides.

Clearly, anyone who allows themselves to be ‘duped’ into buying a property on this development, or any others built on unstable land is simply asking for trouble!

It’s raining

In 2006, heavy rain in Paphos triggered mud slides, which resulted in damage to property and the tragic loss of two lives. The authorities worked hard to put matters right. They improved and enlargened drains, and countoured and cleared ravines blocked by discarded rubbish.

Almost immediately, a developer infilled one of the cleared ravines and started building houses. What happens the next time there’s some heavy rain? Will these houses get washed away?

Heavy rains also caused problems at an Aristo development at Pissouri. One owner went to check that the contents of his garden shed were keeping dry. Seconds after returning to the house he heard a loud crash; a 20 foot reinforced concrete wall had collapsed, crushing his shed and filling his garden and swimming pool with mud, water and goat excrement. If he’d lingered a few seconds longer in his shed, he may well have been killed.

Planning law

Given Cyprus’ long experience of landslides and having to move whole villages to new locations, you would think that the law would prohibit the construction of property on unstable land. Unfortunately, this is not the case!

According to the GSD, engineers and geologists engaged by developers (and others) are responsible for ensuring the stability of any structure and its surrounding area. If problems arise, buyers must persue their case through the courts; landslide is a natural hazard and properties built in these areas are uninsurable.

A disaster waiting to happen

Older British expatriates will remember the Aberfan disaster of 1966. On October 21st, a tip of coal waste, undermined by water, engulfed the South Wales village of Aberfan killing 144 people, 116 of whom were children.

Let’s hope the powers that be have the courage to ban all construction on unsafe ground. Or perhaps they’re waiting for a tragedy like Aberfan to strike in Cyprus!

Cyprus property deals hit CYP 1.7 billion

DURING the first nine months of 2007, Cyprus property deals surged by a spectacular 42% year-on-year to CYP 1.7 billion or EUR 2.9 billion from CYP 1.19 billion a year ago in the same period, which was up 73% on the 2005 figures.

Real estate analysts explain that the spectacular activity in property is mostly due to the impending imposition of VAT on land sales, with many developers rushing to lock in the deals before the additional taxation kicks in.

Easy credit by banks is also widely blamed for fuelling an unprecedented buying spree, with many engaging in speculative activity, which the Central Bank of Cyprus is now attempting to stop.

Famagusta leads the Cyprus property market

FAMAGUSTA (Ammochostos) in eastern Cyprus is the leader in terms of real estate growth according to our analysis of the latest figures on building permits issued by the Cyprus Statistical Service (Cystat).

Cut off from the town which now lies in the occupied area of Cyprus, the region of “Free Famagusta” (Ammochostos) has tended be the Cinderella of the property market.

However, in the first nine months of 2007, the value of building permits authorised for Famagusta rose in value terms by 64.3% over the same period of 2006, to reach CYP 101 million. The number of dwelling units for Famagusta rose in the same period by 62.4% to reach 1,811.

By contrast, more expensive Paphos in the west saw the value of building permits fall by 0.2% and the number of dwelling units by 6.3% to 4,127.

Limassol saw dwelling unit permits rise by 16.4% to 2,179, Larnaca by 8.3% to 2,493 and Nicosia, the capital, by 4.5% to 3,673.

In the same period, the total value of building permits authorised by municipal authorities and the district administration rose by 18% to reach CYP 1.2 billion, while the total number of dwelling units authorised rose by 8.9%.

Avoiding the bad apples

IN LAST week’s article ‘Bad lawyers are making hard job harder’ the Sunday Mail discussed the rise in complaints against advocates in Cyprus, posing the question: “Can it all still be put down to a few bad apples?

I am a practising English solicitor who now lives and works in Limassol Cyprus, I am also qualified as a Cyprus Advocate and runs my own law office.

I am writing to set the record straight on the so-called “cockeyed legal system”, filled with “unscrupulous solicitors”. I believe I can give some crucial advice for those thinking of buying in Cyprus which will help avoid the ‘bad apples’ out there.

Last week’s article voiced the concerns of many expats across the island. It told the stories of the people who have fallen foul of unprofessional lawyers and ended up in the unenviable position of having to change lawyer – or worse having to take action against the lawyer they instructed.

I have been instructed by clients who are planning to take action against their previous lawyer and I have seen the heartache and distress this situation can cause clients first hand.

I cannot deny that there are some bad apples out there. However, I believe that it is not difficult to avoid being stung by following the below advice:

Know who you are instructing! On instructing a new lawyer, you need to know:

1. Is he/she independent?

At my firm we receive many emails from purchasers who have purchased in Cyprus, encountered problems and need help to clean up the mess. When we ask who they instructed, nine times out of ten the answer will be “a lawyer the developer recommended”.

You need to remember that when you are buying in Cyprus your selection process of lawyer should be no different than in the UK. If you were buying a house in the UK, would you select a lawyer that the seller recommended – or even worse use the same lawyer as the seller? It should be no different in Cyprus.

If you use the developer’s pet lawyer make no mistake, he will draft a contract which is weighted in the favour of the developer.

2. Can he/she provide you with a realistic estimation of costs?

It is not difficult for a lawyer to provide you with a quotation for a property purchase. Of course – if there are completely unforeseen complications then the costs could increase from this – but by obtaining a quotation you can easily avoid being over charged in the future.

3. Does he/she carry indemnity insurance?

We are only human. Everyone makes mistakes and for this reason every practising solicitor in England and Wales must carry indemnity insurance to cover potential liabilities if they are negligent. Do not assume this is the case in Cyprus. You need to check that the firm you instruct carries insurance.

4. Find out about his/her reputation

In Cyprus word carries fast and there are numerous resources out there where you can check out the reputation of a lawyer. Five minutes on an expat discussion forum can give you much more information than a lawyers own website, so ask around.

By following these steps you will avoid instructing someone who is known to be unprofessional, or who is obviously so from the start.

Once instructed, other tips for keeping the relationship with your lawyer amicable are:

Get things down in writing

If the advice your lawyer gives to you is in writing then there can be no dispute later on about what was said – which can often be misinterpreted in the heat of a telephone conversation. Keep a file of correspondence yourself so that you know you’ve got your own records – be warned – not all lawyers keep detailed records of conversations and emails.

Ask questions

Do not assume that your lawyer will always mention every eventuality and case scenario possible – however remote. Be involved in your transaction and ask questions – that way you should (hopefully) get the answers you need.

Use the support staff

While it’s always important to keep in touch with your lawyer – it is inevitable that he/she will have other clients and may be in meetings when you call. If he or she is not available – it can often be the case that a knowledgeable assistant can give you the answers you need. Note – a lawyer not answering your calls for days on end is NOT acceptable (unless he/she is on holiday – which you should know about)!

Remember the system is different

Working as a lawyer in Cyprus, having worked in the UK previously, presented me with a real challenge. Not least in terms of the system and the time it takes to get things done here. You cannot expect the same checks and searches to be carried out in Cyprus when buying property as you would have done in the UK. However, you do need to find a lawyer whose advice you trust – so that you can be certain that when he/she tells you that they won’t be performing that coal mining search you expected, you trust their judgment.

I really feel that while it is clear in Cyprus (as in any country – and any industry) there are some “bad apples” in the legal profession, most – if not all – of the problems clients experience with Cyprus lawyers could be avoided by following some of the above steps. While there will always be unscrupulous solicitors out there looking just to make money, they can be avoided by following the above steps.

As safe as houses?

Scam AlertA PROMOTIONAL brochure from a major Cyprus property developer promises potential buyers ‘unique life-long experiences, the building of strong relationships with the human being, along with a combination of security, warmth, and affection towards the family’.

This is the same company that has given an English couple one of the nastiest experiences of their lives: the wife has had a nervous breakdown; the couple has no home and are living in rented accommodation.

They have been intimidated, slandered and bullied. Their life savings have been tied up and they are awaiting the outcome of a lawsuit which, if they lose, will likely render them bankrupt.

John and Mary are decent, honest people but it seems they were too trusting and purchased a home before it was even built. Like thousands of others, they were only too happy to cross their fingers and hope for the best when buying a home sight unseen. Rightly or wrongly they didn’t seem to differentiate between buying a property in Poole and buying one in Polis.

This is a horror story that is sadly not unique in Cyprus.

The couple bought a plot of land and sat down with the developers’ architect to discuss the design of the villa to be built. John and Mary paid their deposit, flew back to the UK and awaited the arrival of the final plans to their dream home.

They were then told that the plot had to be changed, so building work was delayed. They travelled to Cyprus five times in two years, armed only with front and side elevations of the proposed structure, despite having a contract saying plans would be an integral part of the deal.

The second plot proved problematic as the structure would not fit into the new area and there was a further delay.

The developer then insisted on more money up front, with the sales manager ‘walking’ the couple over to the bank where they were asked for a cheque.

John refused to issue any money until they had seen the long-awaited final plans. They were then informed that if they pulled out of the deal the chances of getting back the £24,000 they had paid for the land would be slim.

John and Mary found themselves in a quandary: they couldn’t go back on the deal and the developer wasn’t going to go forward. They paid a further lump sum.

The sum was written as a ‘supplementary fee’ for all the problems the developer had incurred during the plot changes. John and Mary were in effect paying the developer to correct his own mistakes.

We were concerned with the developer’s practices at that stage but we weren’t as streetwise as we are now. Every meeting we went to was very pressurised – almost intimidating.

“We wanted the villa in that area, on that land and we couldn’t afford to walk away from the deposit. The developer’s lawyers reassured us that all would be fine, so we carried on, but it only got worse not better.

After moving into the supposedly completed property, it was nowhere near finished.

Live wires were hanging from the ceiling, doors were not fitted properly, a two-metre drop outside the front door was dangerous. There was no wheelchair ramp as was agreed. Instead there were four high steps.

An English independent architect then told John his villa was actually illegal as the foundations were at least one metre too deep, so instead of a gentle slope down to the front gate there was a ski slope.

A swimming pool was John’s next project. He went and received quotes from the developer and local pool suppliers, the latter came in at around £10,000. The developer’s quote exceeded £18,000.

John was told that if he went with any local company, the workers would be thrown off the property by the developer.

John and Mary returned to the UK and flew back a few months later to discover the new swimming pool had partially sunk into the ground, and the retaining wall had large cracks. It appears the developer had underpinned the pool with trees, which had rotted and caused the pool to collapse.

From checking his enormous water bill John worked out that 500 litres a week were leaking. It was then that Mary had a nervous breakdown and had to be hospitalised.

John then moved out of the property into rented accommodation.

The water had leaked under the retaining wall, which had existing cracks from bad workmanship – and it was now cracking even more,” he said.

But worse was the fear that 30,000 gallons of water in the pool would crash down the hillside along with 20 square metres of concrete. This would be akin to a tsunami hitting houses below.

That’s when I went to find an independent lawyer and a structural engineer.

John tried to hire 10 lawyers within the locality. None would take on the case, saying they had a conflict of interest as regards the developer.

In eight separate instances, lawyers said “they could not take on such a giant in the building business” as their livelihood would be affected.

They all said sorry because they had work from the developer. That’s what he does. He gives a little work to a lot of people,” said John.

I am 68 and feel 78. At one stage I felt like taking my life. It was that bad.

Seven calls were made to local civil engineers, all of whom declined to make an independent survey for the court case, again citing fears of reprisals.

The developer has said he would take our case to the wire until I couldn’t afford to carry on. But this isn’t going to work,” John added.

John got the name of a good lawyer outside the area and has since found a civil engineer.

The new lawyer discovered that John will never gain title deeds to his property, as the original plans on construction of the property from the town planning office were not followed – in other words the structure built is illegal.

It is now estimated that John will need more than £30,000 to make the villa safe and habitable and that does not include a new swimming pool.

It has taken John and Mary two but they will go to any legal lengths to win this battle.

We love Cyprus and we love the people but I’d never buy another house here.

I will rent and I would put anyone off buying a house, certainly off-plan and certainly put them off trusting developers,” said John.

It has made me bitter and I’m not a bitter man.

Need some advice?

PROPERTY Lawyers Abroad Network (PLAN) is an organisation that works with dual qualified property lawyers in more than 25 countries popular with UK buyers and offers greater consumer protection.

PLAN offers its clients the security of UK-level conveyancing standards, including regular email updates on case progress, a UK-based escrow service and negligence cover through the law society.

This is all for an administrative fee of 15 per cent on top of the standard conveyancing fees. Without such a service buyers can find themselves at the mercy of lawyers who may offer a poor service or even misappropriate funds, and against whom there is little chance of redress, says managing director Michael Masterson.

Even in some of the more established property markets, the safeguards are minimal. As far as I am aware, for example, there has never been a successful negligence claim brought against a Spanish lawyer,” he says.
www.plani.net

Copyright © Cyprus Mail 2007

Man wanted after 80,000 goes missing

A PAPHOS estate agent is wanted by the police after being accused of stealing an 80,000 deposit from a British couple before disappearing.

Paphos CID believe the 49-year-old man may have already fled the country after closing down his offices and have issued a warrant for his arrest. Interpol has also been notified.

The incident is said to have taken place in October when the couple, who are permanent residents of Dubai, gave him the deposit towards a 120,000 plot of land in Peyia. According to their statements, they were planning on building their dream home in an area that they love and to split their time between Cyprus and Dubai.

Apparently the agent told the couple that he was in possession of all the relevant documentation, but would always find an excuse not to actually show them the paperwork.

The Brits put their faith in the agent, believing his claims that the deal would go through within the space of a week.

The money changed hands on October 9, but ten days later, the couple was unable to contact him, despite numerous attempts.

The police yesterday said that they are doing everything possible to track down the fugitive. A spokeswoman said: “We are liaising with law enforcement in other EU countries as the man is believed to have fled Cyprus to hide out with relatives abroad.”

Denis O’Hare is the co-founder of the Cyprus Property Action Group, an organisation set up to help people who have experienced problems when purchasing or attempting to purchase property.

He told the Mail that “due to a lack of adequate regulations governing agents, developers and lawyers as well as a lack of enforcement of the law, many cases of fraud are being reported to us“.

We would like the government to help us address these pitfalls as this is in the interests of everybody involved in the property industry, as well as the government itself.”

He added that Cyprus “must be seen as one of the safest places on the island in the Mediterranean in which to buy property“.

Copyright © Cyprus Mail 2007