By ANNA-MARY EVTYCHIOU
Director of PR &Communications of G&P Lazarou Estate Agents< /p>
The consideration of a plot of land with apartments is a process that dates back and evolved significantly in Greece and Cyprus, after various historical events.
Specifically the relevant process developed especially in Greece after the war of 1940. It flourished during the 60's, 70's and 80's, reaching its peak in the 90's, 2000's until today.
In Cyprus modeled after Greece, the phenomenon of reciprocity began after the war of 1974 and continued to a greater extent in the following decades until today.
Instead of selling the land and receiving the cash consideration, the land owner leases his land to a land development company, in exchange for apartments.
Let's take a closer look at this method and the advantages and problems that may arise.
The consideration and advantages of:
- Lack of expertise or financial ability:
Owners who do not have the necessary expertise or financial ability to develop their land choose this method to utilize their land.
- Emotional Connection:
< p>Owners who have an emotional connection to their land, such as where their family home is, choose to trade in rather than sell.
- Liquidity:
Some owners choose consideration for liquidity reasons, as the project can be turned into a source of income and capitalize on their investment.
Factors that affect the value of the consideration:
Factors that affect the value of the consideration:
The architect selected to prepare the study has a significant effect on the value of the consideration. The quality of the architectural design and the choice of materials affect the final value of the apartments. In addition, the experience of the architect in construction practice is decisive for the value of the project.
Expenses borne by the owner:
Typically, in consideration agreements, all costs are borne by the land developer. However, it is important to consult with legal counsel to ensure that you have the appropriate legal protection.
The owner may be required to pay taxes, fees and other obligations if there are no relevant clauses in the contract.
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Pitfalls and problems:
During the provision, there are many problems that can arise. Problems with unreliable contractors or delaying the start of the project can lead to legal disputes. It is important to have clear and detailed contracts to avoid these types of problems.
Compensation is a process that can be beneficial if you plan it carefully. It is also important to consider the factors that affect the value of the consideration, and to consult legal counsel to protect your rights.
