Buy Abroad News

08 Nov 10

Claiming Compensation When Yuor Overseas Property Is Delivered Late

Many people face the unhappy reality that the property they have purchased in Cyprus may not be ready on time and in some cases the delay could run in to years rather than months. The recent economic downturn has meant that more and more people are finding that the developer cannot fulfil their obligations under the contract of sale.

If delivery of a property in Cyprus is delayed then that is when buyers start to really examine their contract of sale. We spoke to a leading Cyprus Solicitor who said “most well drafted contracts will have addressed the issue in advance, but are such clauses claiming payment for late delivery reliable and what can you do in order to ensure that you are adequately compensated?

A contract to purchase property in Cyprus should contain a provision which states that compensation will be payable to the purchaser if the property is delivered late. The clause may contain a grace period to allow some scope for reasonable delays and will provide that if the developer fails to deliver after the grace period then he will be obliged to pay a certain amount per month to the purchaser as agreed damages”.

The conclusion is that providing your contract of sale has been drafted correctly there will be a provision to compensate you for loss of earnings and use as a result of not being able to use the premises and as such you should be speaking to your solicitor to ensure that they press the developer for the appropriate compensation .