Estate Agents may be required to return fees if purchase fails in North Cyprus

An interesting fact was brought to my attention recently. I have been waiting for chapter and verse on this, and even though it was promised, it has not yet arrived. I have however decided to share this with you.

It is alleged that if you have purchased through an Estate Agent, but was unable to get the property registered in your name, the selling Agent is legally obliged to refund to you the purchaser every penny s/he received as commission for the sale. Now I had hoped by getting chapter and verse on this, to be able to find out if this came about as a result of the Estate Agents’ Law of 2007 or if it was an existing rule. Clearly to find the exact date is important because if it was already in existence then every purchaser in the boom will be covered by it. We all know that here there is no retrospective application of the law.

For instance, if it was an existing rule, the majority of purchasers of properties built by Aga Development Limited would be able to chase Unwins Estate Agent for some of their money back.

Take it a step further; every purchaser of property who is unable to obtain Permission to Purchase because their property is too close to or overlooks a military base would be able to chase their selling agent.

Every victim of double/treble/quadruple selling would be able to chase their selling agent.

Everyone who has ever won a Breach of Contract Action, regardless of whether paid or not, would have a claim on the selling agent.

There are many scenarios where YOU as the purchaser may not ever have been able to get the property title into your name so perhaps it is worth a try?

Do not expect too much co-operation from your Advocate initially. Remember that in some cases they too might have paid the selling agent a ‘kick back’ for your introduction to them.

Remember we are talking a minimum of 5% of the selling price and also remember that during the ‘boom’ the builders were being particularly generous to the Estate Agents.

The same source alleges that Estate Agents are also obliged to carry Professional Indemnity of 100,000 TL. Clearly the amount is totally inadequate but the idea of them carrying Professional Indemnity is accepted. In my opinion it should now be increased to a minimum of £1,000,000 and extended to all ‘so called’ professionals. In other words Advocates should, as a requirement to trade, carry a minimum of £1,000,000 cover as should all members of the Constructors’ Union. It should be mandatory that all builders be members of the Constructors’ Union with no exceptions.

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