Let down by the BRS?

[Jeremy S]

I have just received the following email from the BRS and I feel let down that they will not be making representations on behalf of their members. I would value your opinions.


FINDINGS OF THE ‘PROPERTY SURVEY' AND THE NEW GOVERNMENT LEGISLATION ON 3RD PARTY NATIONALS PURCHASING PROPERTY IN THE TRNC

INTRODUCTION

In May 2024, the TRNC government introduced new laws relating to the purchase of land/property in the TRNC by 3rd party nationals and the collection of taxes on those properties. At the time, as with most changes in legislation, this brought about a great deal of uncertainty and concern. In order to fully understand the impact of such legislation, representatives of the BRS committee had a series of meeting with solicitors, estate agents, developers and our own legal advisors to gain a better understanding of the issues and how the BRS could best support it members.

The outcome of these meetings did not yield a conclusive ‘single voice' view from the various stakeholders, yes there was significant ‘government bashing' but nothing substantive to suggest that a radical overhaul was needed.

Nonetheless, the BRS decided to delve deeper into the issue by trying to understand how significant the new legislation would be and to how many members? It was envisaged that by conducting a survey, the findings could be passed onto government representatives and legal bodies to highlight the concerns and issues being experienced in the property purchasing process.

PROPERTY SURVEY

The BRS wanted to know, in approximate terms, the stages our members are at, in terms of property purchase and receiving title deeds. We accept that the survey was not an exact science and we tried to make it as representative as possible for example by not asking couples who live together to both complete the survey and for Turkish Cypriot members not to complete the survey.

We had an excellent response rate. The key findings could be summarised as follows (percentages are approximate):

10% of members rent in the TRNC (therefore property purchasing issues not relevant at this moment in time).

50% of members have completed the purchase process and are in receipt of an individual or shared title.

25% of members are in the process of purchasing/completing/waiting for title.

15% of members have a circumstance that is beyond/outside of the scope to complete, and therefore unable, to receive their title deeds.

The BRS was somewhat reassured that the majority of members would not have further issues (60%) and the 25% who are in the process would need to receive legal advice from their solicitor(s) in order complete the processes and pay their taxes.

As for the remaining 15%, the BRS wrote to these individually to ascertain a better understanding of their issues. Again, there was no conclusive single issue but the responses can be categorised as: issues with their solicitors; setting up of trusts; probate issues; court cases and sites not being parcelised.

CONCLUSION

The BRS accept that not all members will be happy with the introduction of the new property purchase laws and that these may impact on them, most likely financially. We would like to re-iterate that the BRS cannot provide legal advice and our only recourse at this moment in time is that those members who need to complete their purchase do so by seeking advice from their solicitor(s). The BRS cannot intervene in individual property cases and we are not resourced nor financed to be able to do so.

We accept that there will be a number of members who will not be happy with the BRS approach. We also accept that there are unfortunately a number of members who have been significantly let down by property owners/developers/courts/government legislation in their pursuit of title deeds (both high profile cases and lesser known ones). However, the information we have obtained from the survey and follow up emails does not suggest that there is a particular or significant issue to make representation. What is more reassuring to the BRS is that the majority of its members have or are progressing through the property purchase process.

Please be aware that the BRS has for several years made representation to the relevant authorities about PTP issues, clamping down on rogue developments/developers and other general issues within the Land Registry department, most of the time to good effect but sometimes without much success. We will, as with other societies, estate agents and solicitors look out for any change/alteration in legislation to accommodate any anomalies in the new legislation and pass these on to members.

Regards
BRS News

[techtrader]

Lol perhaps you should look into my history and understand these people are not working for you !!

Hey now it's easy right, all makes sense??

[Medjoul1]

I can hardly believe such a flippant and off hand attitude from our representatives. A large proportion of the membership thrown under the bus but 'I'm alright Jack' from the committee.
They've just lost a member of many years

[rockpebbler]

I emailed them 3 days ago about this, No Reply.
I have put my concerns' on Face book over the last 2 days over200 hits all highly critical of the BRS stance (only 2 people critical of me for attacking the BRS Volunteers) What do we pay membership for if we are being ignored, lost 2 more member here

[Tanky]

I think Medjoul1 has hit the nail on the head. The BRS are very good when all in the garden is Rosy but other than that ''I'm alright Jack''

[JoandJelly]

"50% of members have completed the purchase process and are in receipt of an individual or shared title."

They don't think that having to pay 12% tax and potentially not being able to actually obtain deeds within 6 months and thereby forfeiting that tax amount is not an issue? Also not being able to sell shared title is apparently not an issue? They are absolutely burying their heads in the sand and doing the members a great disservice. I would love to know what percentage of this 50% have an individual deed. Not many I'd wager.

[Joker2nd]

I contacted my solicitor, which I have been with for 15 years, regarding my title deeds, permission to purchase in 2017. The response was we have too many to deal with at the moment. Go to your vendor and deal with them. Been trying for 15 years. All I get, it's in the pipeline. I think the pipeline goes to the moon and back, and back again.

[rockpebbler]

J&J the 12% is only the thin end of the wedge, the Land Registry is revaluing the properties, so if you bought 10 - 15 years ago and your contract price was say £50,000 but the property is now worth 3 or 4 times that the 12% taxes are not based the £50,000 (£6,000) but on the higher valuation (£18,000 - £24,000). For people who should have paid 3% the increase is 4 times that plus the revaluation.
Horrendous extra costs through no fault of their own and these 25% of people affected are not important to the BRS.

[Jeremy S]

Do the BRS not represent ALL of their members or only those with fully paid up individual title deeds?

How many and what % of their members completed the 'not scientfic' survey?

By not making any representations to the Ministers that means that the BRS accept, on behalf of all their members, that the new rules are fine. Will that not pull the rug from under any other organisation including the TFR making representations? Ministers can say that the British accept and agree with the new laws so why should they change anything for other 'foreigners'?

10% are renters and are not affected? What if the property is shared title? Can shared title properties still be rented to foreigners? What do you think will happen to rental prices?

50% have completed the purchase and are in receipt of individual or shared title. So those with individual title are 'alright jack' but what about those with shared title who were fully legal on the 23rd May but not now, and who can no longer buy or sell their property? Does that not require any representation from the BRS? Who is to say that those who are legal with their individual title who are legal today, will not lose their legal status tomorrow?

I don't like the use of the misleading use of the title 'solicitor' by the BRS which to the British I suggest conjures up the picture as in the UK of a fully qualified solicitor, on the Law Society Roll, complying with all the protection of the legal rules and regulations, who owe a duty of care to their clients and have indemnity insurance etc. Lawyers here in NC are 'advocates', are not necessarily trained and qualified to practising UK lawyer levels, and do not regard themselves as owing a duty of care to their clients nor, to my knowledge, do they have legal indemnity insurance.

[rockpebbler]

Jeremy S. Completely agree with you 50% of BRS members are being left to the government merciless increases in taxes.
We have friends who are renting and already being told that the landlord cant get a Kocan so they do not know if they could potentially being homeless, if this has a knock on effect there could be a bigger problem finding rental properties and lead to greedy landlords charging even more.

[Jeremy]

I’ve been told that an English couple have had their Residency renewals refused as they only have shared title.

[Tanky]

And whilst this all goes on the BRS still do nothing more. I do not think the BRS really know just how many of their members are effected by this new ruling. It might have been a good idea to have had an open evening to really air this one and fully understand their members views. Do all parties out there really fully understand what is going on??? I doubt it. And the BRS advice '' go and see your solicitor''. As we all know this will lead to only one party getting the financial gain.

[Medjoul1]

I've been fearing for some time now that they would use the residency route to force us out and hope I can make it to renewal next November and have some breathing space. We are becoming a two tier foreign society of the haves and the have nots (Kocan)
I already have a local expressing interest in my property, the vultures are circling.
On another note I had another wasted journey to the Tapu where after seven weeks now my valuation isn't ready.

[benjaminbutton]

Went to the TAPU with someone else yesterday and the offices were mayhem. Paperwork scattered all of the place, what its like upstairs I dread to think.

[rockpebbler]

Despite hundreds of comments on Facebook over the weekend nothing from the BRS. The Silence is Deafening, but as the famous TV programme says " Dont Panic Mr Mannering" . I am sure they will show an interest after it is all over, Around January when the subscriptions are due.

[waddo]

Well, the annual Christmas back slappers ball should be interesting this year - that's if there is anybody left to attend, maybe only those with Kocans will be able to go - lol.

[alphamike]

I was advised to join a good few weeks/months ago when all this rubbish reared it's ugly head. I was loathe to do so in view of my past dealings with them, but thought ok perhaps it's time, this issue being so serious. Luckily my fabulous memory came into play and completely forgot all about it.
Their attitude absolutely stinks. I hope those with kocans leave in droves, they are bound to have friends with this threat hanging over them.

[benjaminbutton]

I still keep with them just so I keep up with their goings on. They have some sort of End of Summer BBQ in October I think. Its going to be interesting to see how many people buy tickets. I'm sure there must be people on the Committee who are a tad unhappy at the moment as well.

[alphamike]

Nice to see we have a mole.

[techtrader]

Well, the annual Christmas back slappers ball should be interesting this year - that's if there is anybody left to attend, maybe only those with Kocans will be able to go - lol.

And proof of vaccine of course

[benjaminbutton]

I only read what they put out to general. public. At least I think its general. !!

[Jeremy S]

At least the TFR are supporting their members and making representations I'm pleased to say.

[Jeremy S]

Poor reasoning, read the subject again, understand it and re-submit! 2/10


'Dear Members

Our recent newsletter sent on Friday 30 August regarding the outcomes of the BRS Property Survey attracted a number of negative comments, namely towards the BRS and its approach to the new property legislation. The purpose of this briefing is to provide more information and clarification to the BRS approach.

Firstly, whilst we accept criticism, the committee will not tolerate abusive or bullying language on its Facebook site or in any emails that we receive towards the Committee or from any member to another member. Disciplinary action will be taken where relevant. Pleasing thousands of members all of the time is an impossible task but the BRS does not serve its members so it can be ‘shot at'!

Ironically, the issues that appear to have enraged a number of members are not directly relevant to the new legislation that was introduced in May 2024. As we, the BRS and its legal advisors interpret the new legislation of which there are 3 main strands/principles, these being:

To clampdown and provide more structured regulation for new property developments on developers and construction companies to make it easier for individuals to obtain their title deeds.

To provide more clarity as to what 3rd party nationals can obtain/purchase.

To introduce a more efficient and effective process and to put procedures in place in order for the government to collect taxes relating to property purchases.

In isolation, we believe, few people would be opposed to any of the three principles.

Principle 1:

For over two decades various societies (legal and civil), pressure groups and representatives have lobbied the government to improve the way developers conduct themselves. Whilst the legislation is probably twenty years too late, nonetheless, it is now here.

Principle 2:

The BRS too, have heard rumours and discontentment about large developments being in the hands of foreign nationals. Whether this is true or not is irrelevant but at least the new legislation clarifies who can do what.

Principle 3:

Nobody likes paying tax, but it is no different here than anywhere else, tax needs to be paid on property transactions. What the BRS would want to see is the right tax being applied at the right time. Time will need to elapse to see what the government via the land registry department is going to do.

It appears that those who were not happy with the BRS note on its Property Survey have confused the May 2024 legislation with their current circumstance. So, those who for years, if not decades were unable to attain their title deed, the May 2024 legislation was not designed to suddenly allow you to do so. At this moment in time solicitors and courts are the recourse for this situation. In addition, the May 2024 legislation did not introduce the 12% tax rate. This was introduced, in February 2023.

The BRS understands that the May 2024 legislation is being challenged in the constitutional court. It is highly unlikely that any representation to the government on the issues would be considered whist the case is on-going. And this may be the confusion amongst members whereby it appears the BRS ‘are not doing anything' for the 15% or 40%. We repeat again, the purpose of conducting the Property Survey was to simply see (in rough terms) where our members are in the property process.

The conclusion paragraphs in the Property briefing note still remain valid – whilst 15% of members are in the ‘other' category – their individual circumstances are not directly related to the introduction of the new legislation, simply historic property issues that seem not to have been resolved over time.

We will of course keep monitoring the situation and talking to our Legal Representatives and the relevant Ministries and will provide members with any information we have at the appropriate time.

Regards
BRS News'

[alphamike]

Thanks for posting Jeremy

[Orbit]

The new legislation is catastrophic for the 15% who have ‘simply historic property issues that seem not to have been resolved over time’. The legislation directly threatens this category with enforced tax that they would otherwise not be paying as many are in the unfortunate position of being unable to get their title deed from the constructors, and on top of that the new law further specifies that if the full title deed is not obtained then there will be astronomical fines and voiding of their existing contracts. How can the BRS not see that many currently stand to lose their homes directly because of this legislation. Many outside of the 15% are also very badly impacted too; try being an apartment owner who already has their title deed but discover that this new law voids this too. I could go on, but I’m glad I’m not a member of this smug organisation.

[techtrader]

The new legislation is catastrophic for the 15% who have ‘simply historic property issues that seem not to have been resolved over time’. The legislation directly threatens this category with enforced tax that they would otherwise not be paying as many are in the unfortunate position of being unable to get their title deed from the constructors, and on top of that the new law further specifies that if the full title deed is not obtained then there will be astronomical fines and voiding of their existing contracts. How can the BRS not see that many currently stand to lose their homes directly because of this legislation. Many outside of the 15% are also very badly impacted too; try being an apartment owner who already has their title deed but discover that this new law voids this too. I could go on, but I’m glad I’m not a member of this smug organisation.

100%

And reading between the lines it seems they instigated this disaster too!!!!

[Medjoul1]

Somebody tell the BRS Committee that when they reach the bottom of the hole stop digging.
The final piece of advice 'see your solicitor or take recourse in the law' is an insult and a cop out. They know very well (or should do) that the law cannot force exchange of Kocan.

[Kanonier]

"Disciplinary action will be taken where relevant". Buttons cut off, sword snapped over the knee?

[rockpebbler]

Kanonier
I think I have been severely disciplined. I have sent two personal emails politely asking them to reconsider there position on this matter and both have been ignored. Is this ghosting being disciplined?

[Kanonier]

Sounds like it to me

[Jeremy S]

I am so disappointed by the BRS Committee's response to the new property laws and their point-blank refusal to address and make representations on the severe legal issues facing their members. This is not just about the huge and unforeseen increase in property taxes that the BRS seems to be fixated on; it is thus sidestepping the problems, i.e. on shared title. While legal action to challenge compliance with the TRNC Constitution is being taken, neither I nor presumably the BRS know what that action is legally about other than guessing. The Courts may say that the government change to the law was perfectly legal and not say anything about the content of the law itself (that may not have been part of the subject of the legal challenge). NOW is the time to make representations to ministers who, having made sensible adjustments to the new property laws, may address the legitimate issues and negate the need for the matter to go to court at all.

[Reyntj]

This could be nonsense but a tc builder told me they wont cancel any contracts andi its just a huge stick to get people to comply as they need the money.

One can see the rationale in that but who knows what Will play out & the anxiety it has caused

[Orbit]

Jeremy S, yes, it’s a fundamental issue that none of us know what is being legally challenged specifically, and you can bet it doesn’t consider issues around those that should not be caught up in this. So for instance the lawyers group are likely concerned with the way the legislation cuts them out of the buying process, and will be challenging that. Does anyone here really think they will be presenting arguments in favour of expats and foreigners caught up in this, especially since quite often a it was a lack of action or advice on their part during the original purchasing process that left many buyers unable to get deeds or in some sort of legal wrangle. We don’t know if any of the legal challenges are specifically arguing to exclude those on shared title, or those who can’t get their title deed because the contractor did a bunk etc? BRS thinks we are looking for all our problems to be solved, but we really want to be initially exempted from this tax and the dire consequences it has when we can’t comply with the new law even if we wanted to. If the govt wanted to use the opportunity to collect taxes from those that can’t get title deed ever, then they need to suggest a new mechanism or revision that allows buyers a path to get to full title deed without absent or unwilling constructors/vendors, but they won’t, so they need to exempt this group and leave us to get on with it. Since BRS clearly isn’t representing its members in this what is the route we can take to get this representation to ministers?

[Jeremy S]

Since BRS clearly isn’t representing its members in this what is the route we can take to get this representation to ministers?

I suggest joining the Foreign Residents Association (TFR), which is making representations on behalf of its members.