gordy
New Member
Posts: 7
|
Post by gordy on Sept 16, 2007 21:14:58 GMT 1
It was two years ago since we completed on our purchase, of a semi derelict house in Dubrovnik,in need of renovation, we have still not had approval to register our name on land registry yet, and can not obtain building permit without complete ownership and I think water,electricity and telephone also, then recently we get a letter from a Croatian solicitor saying that his client (the seller) did not really understand the contract. (this was signed with his solicitor in front of a notary).
The letter reads, that there has been an obvious mistake on contract, and right of pleasure to use (uzufruct)for life time of the property is in buyers name and should be in sellers name, and would I sign to give seller life time use of the property, obviously not.
I contact my English speaking solicitor and explained the situation, she contacted the seller, he said he would pay back what I paid for the house two years ago, if I did not agree he would take it to court knowing that it could take anything up to three years to to be heard,he would tell the court that there is a dispute, which until resolved would stop the ministry giving permission to enter my name on land registry.
blackmail?, what can I do?
|
|
|
Post by Aleksandra on Sept 16, 2007 22:16:35 GMT 1
Yes it is outright opportunistic blackmail. It is difficult to say what should you do without knowing what kind of clauses you have in your purchase contract. Do you have power of attorney over the property from the seller for the time whilst waiting for the permission or in the unlikely case that the permission is not granted? One of options is to play it cool and call his bluf - he is likely to lose and it would cost him money. Also, maybe you should talk to your solicitor and investigate whether you can convert your purchase to company purchase.
|
|
|
Post by Carol on Sept 17, 2007 7:52:47 GMT 1
you would need the sellers co-operation to change the name of the buyer and I don't think you'll get it. If I were you, I would:- 1. Make him sweat, not reply and not be available to recieve letters, that way ypu can drag thngs out. 2. Ask your lawyer to try to hurry up the MOJ permission.
Its a race to get your name in the land registry before he puts a court injunction against it.
|
|
|
Post by Ribaric on Sept 17, 2007 8:18:00 GMT 1
I'd go with Carol's suggetsion. The ball is still in the seller's court to actually do something... other than write to you, that's probably it.
I'd like to be a fly on the wall in the court when someone comes in and says "I want to change this contract on the basis that I didn't understand it when I signed it... Oh yeah! and my lawyer didn't advise me about it".
Reminds me of the Monty Python sketch where a bloke shows up the registrar's office with a brunette and says "I know I married a blonde in here yesterday but I want to change her for this one".
|
|
|
Post by darcy on Sept 17, 2007 9:27:42 GMT 1
Not many people are mentioning that, but there is a perfectly legal way in Croatia for the sellers to let you (the buyer) register your title once you have fulfilled all your contract obligations and in Croatia they call it "tabularna izjava" - ask you lawyer for more details, he/she should know all about it. If you have it as part of your contract, you are safe and you can wait for the purchase permition as long as it takes.
|
|
|
Post by Carol on Sept 17, 2007 12:18:26 GMT 1
Darcy can you tell us more? Do you know a way to register ownership without MoJ permission?? Or are you discussing blocking any other sale by appearing as a burden whilst awaiting the permission?
|
|
|
Post by Carol on Sept 17, 2007 12:20:00 GMT 1
I am afraid that saying you don't understand the contract is one of the classic ways to break it. That's why a court interpreter should be on hand for any non-Croat speakign parties and there should be a line in the contract which says you sign in acceptance and understanding
|
|
gordy
New Member
Posts: 7
|
Post by gordy on Sept 17, 2007 19:19:17 GMT 1
Carol, you said Ask your lawyer to try to hurry up the MOJ permission, is this possible? if it is how is it done?
|
|
|
Post by Aleksandra on Sept 17, 2007 19:37:22 GMT 1
Darcy can you tell us more? Do you know a way to register ownership without MoJ permission?? Or are you discussing blocking any other sale by appearing as a burden whilst awaiting the permission? Carol, "tabularna izjava" is a statement where the seller confirms that they have received all monies and that all other contractual obligations have been fullfilled by the buyer. The buyer cannot register with land registry with "tabularna izjava", i.e. there is still MoJ that is required, but as Darcy says, it would be difficult for any court to judge in seller's favour once the seller has signed one of these. The agency I am working with the process goes like this: contracts are signed, monies are paid, once the monies arrived to seller's account, then "tabularna izjava" is signed by the seller. The purchase contract itself has an article saying that once all payments are fullfilled, the buyer obliges to sign "tabularna izjava". Also check your PM.
|
|
gordy
New Member
Posts: 7
|
Post by gordy on Sept 17, 2007 19:53:37 GMT 1
Kitty, what does pm mean? would you be kind enough to explain a bit more about "tabularna izjava" does this actualy need to be written and worded in the original sale contract.
|
|
|
Post by Carol on Sept 17, 2007 20:10:02 GMT 1
unless your lawyer has a "connection" at the MOJ there is little he can do except contact them to ask what is happening with the application and to find out if they are waiting for someone to call so that they can ask for additional documentation. If you think it would be logical that they would proactively volunteer such info, you would be correct but would also have unrealistic expectations.
|
|
gordy
New Member
Posts: 7
|
Post by gordy on Sept 17, 2007 20:18:58 GMT 1
Carol, do you know some body who has a "connection" at the moj that could perhaps assist?. you do appear to know a lot more than i.
|
|
|
Post by Carol on Sept 17, 2007 20:37:19 GMT 1
sorry no i don't (and I really don't I'm not just being unhelpful). I am an estate agent so I should know more than most people about the process as I spend a huge chunk of my time handholding my clients through the process.
|
|
|
Post by darcy on Sept 17, 2007 23:10:06 GMT 1
In 2007 I do not know any legal way of registering a property with the Land Office without MoJ purchase permition. 10 years ago it was different (it was not really possible at all), but if you were lucky, you did the few favours and you had your own JBMG (equivalent of the social security number or the tax file number), it helps. Plus, I made clear to the seller - clean title in my name is my condition of sale so probably he did something as well. As I said before, I did not pay any deposit to the seller as well - the whole payment was deposited with a notary until the whole process has been completed. Yes, I paid a little bit extra.
Kitty is right about "tabularna izjava", I strongly suggest all new buyers to mention "izjava" in the contract and demand it as soon as you hand over the money. It basically waives all sellers’ objections of any kind once you (the buyer) honoured the contract. I also provide guarantees there will be no issues with the title registration and if any it is on the sellers' cost. (Eg. a sellers' cousin arguing some 100- years old despute within the family). You also use "izjava" to lock down any other title transfer, but there are other ways of doing it. (I hope you have done it!)
Gordy, go and check with your lawyer does any court action prevents the MoJ from giving you the approval for purchase. I think there is no legal reason for that, as they are separate legal matters. Ask you lawyer to investigate the matter and make sure you receive your MOJ. Of course, you will not be able to register the sale, but it will clear the water. The court case is clearly in your favour, not because buyer did not understand the contract (I can bet your have in the contract a sentence which says "the seller understands the contract"), but because, you will argue, the contract was FAIR. Also, you have to mention, the seller signed the contract two years ago and only now they came up with additional request. Carol is right, start the “buying time game”. If the seller lodge the court action, believe me, you could not do anything.
I also strongly suggest you, do not make any additional payment in the exchange for the "tabularna izjava", it will make things only worse in the future. I think, that is what the sellers are looking for.
I always said to people interested in purchase in Croatia - you have to be ready to loose 30% of your investment due to many reasons. It is not an investment it is (still) a speculation.
|
|
gordy
New Member
Posts: 7
|
Post by gordy on Sept 18, 2007 13:03:03 GMT 1
Our purchase for house was Oct 05, as I think I mentioned before no permission from moj yet, what is a reasonable time to allow before contacting moj?, incidentally does anybody have a tel no for moj.
|
|