advice for selling

[crogirl]

Can anyone advise on this? As foreigners we are still awaiting MFA permission after 3 yrs as our application was one that fell into the 'backlog pile' which has now been superseded by a seemingly faster and efficient system. We haven't pushed for permission as our solicitor claims that if we are selling as is our imminent intention, we can transfer this application to the next owner if they are foreign (or it's not required if they are Croatian) This would also have implications for RETT? Our solicitor has not kept up with the 6mthly requirement to lodge our name against the property and again she says this will be an advantage if we sell. Do you think this info is correct?

[mirabelle]

I reckon if you want to sell nothing to stop the marketing, but you'd be better off explaining position to potential buyers (not necessarily helping a sale). Our solicitors advice seems different to yours - or words to the effect that two applications on same property would be a recipe to foul both up, not heard of any possibility of transferring the application during process. You'd have to wait until your current papers came out and you are registered (and RETT paid etc). Not sure of the six monthly requirement you mention. I'd want current postion in old backlog pushed along as much as possible.
By the way sretan rodensdan.

[crogirl]

Hi Mirabelle
What if the buyer was Croatian and didn't need permission?

[Carol]

Crogirl - I think what you lawyer is trying to suggest is that if you sell on the property, that you can do a deal with your buyer and the person who sold you the property such that you rip up the contracts and pretend you never bought it, thereby avoiding the 5% RETT on the purchase and any capital gains tax on the sale.
To do this you would need a flexible buyer and a helpful seller.
You would also need the contract not be lodged anywhere official.

I don't think you'll get away with it (if that is what he is suggesting) because:-
1. Your purchase is lodged somewhere official: The Ministry of Justice when your lawyer applied for permission to own (or did he??)
2. He should have also lodged it at the land registry to protect you from it being sold by your seller twice
3. If you have a buyer who wishes to give you more money than you paid for it, then your seller might have a tax liability on the gain if he/ she were to pretend that they really never sold it to you and that the next sale is the first.
4. In any case, your seller would either have to be a really nice, helpful person, or you would have to make it worth their while to lie.
5. You would need to do some major explaining to your buyer as well as to why you are agreeing to sell them a property which you do not legally own.

Maybe I have misunderstood what your lawyer is trying to say, but it would be worth trying to understand what he is saying and why he thinks you could get away with it. And then ask the questions about what you paid him for if he never did apply to the MFA for you??

[crogirl]

Hi Carol
My lawyer did apply for permission as we have a tracking no and the explanation re our name not being lodged against the property is that it lapses every 6 mths and it is our responsibility to keep updating this but as we have the contracts we 'shouldn't worry' - would you agree with this? My lawyer has power of attorney from our original seller but I've never understood what this means. Not sure what we can do if a buyer comes forward without our permission coming through?
I would like this clearing up before we sell so if you offer a valid service (Istria) to help on this I would be interested

[valiant]

what the hell are croat lawyers for??? NOTHING

[Carol]

crogirl - sorry no I don't offer such a servcie anywhere. I am just an estate agent and some times I give a bit of free advice.

The POA could be for anything. Its a meaningless sentence without the words at the end sayign what the POA is for.

Don't worry about the seller havign sold twice, its not very likely at all.

The way out of this is to find a way to get your lawyer to explain more clearly what he's talking about. The statements you are reporting just don't make much sense and there is definately misinformation in there such as you can transfer your MoJ application to another person. You cannot do this: it is person and property specific.