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The
timescale for purchase will to a large degree depend
upon the type of title that exists.
Buying a Turkish or TRNC (Turkish Republic
of Northern Cyprus) title property will require
a number of checks to be carried out by the Ministry
of Interior, and therefore this type of purchase
will take approximately 4-8 months to complete.
There are a
number of types of title deed in North Cyprus:
a) Foreign ownership pre-1974:
For example British, with title deed. Northern
Cyprus property in this category provides the
quickest route to purchase as there is no requirement
for Council of Ministers approval. There are very
limited number of these properties in North Cyprus,
and usually the owners will not be willing to
sell.
b) Turkish Cypriot owned pre-1974: Before
the Northern Cyprus property can be registered
in your name, an application must be made to the
Council of Ministers for approval. The procedure
for obtaining approval can take up to 6 months
to a year.
c) Esdeger Properties... Land or property,
originally owned by a Greek Cypriot prior to 1974,
with title deeds issued by the TRNC (Turkish Republic
of Northern Cyprus) Government on a points basis
in compensation for land given up in the South.
The owner of such a title deed is allowed to sell
to foreigners. It seems unlikely in any settlement
of the dispute between the North and South, that
anyone who has been so compensated through Government
issue of such a title deed, or indeed any subsequent
purchaser of such title, will loose the value
of such issue or purchase. We consider almost
all such purchases very safe and we can advise
you further on the purchase of this type of title.
The points system is also known as 'Esdeger' and
it means 'Equivalent' in Turkish language. In
other words, these properties have been given
by the Turkish Cypriot administration in exchange
for the properties abandoned by the in the South.
The famous Annan Plan also gives international
recognition to these properties.
d) Greek Cypriot pre-1974: Land or property,
where there are no title deeds. Some people offer
for sale, such properties without registered deeds
for relatively small amounts of money. We advise
against such purchases. Please consult your legal
partner before making such purchases.
e) Contractual or "cases pending"
land or property: These are properties where title
deeds were never issued, due to delays at the
time of the division of the island in 1974. Following
the formation of a Turkish Cypriot Government,
a statement was issued that all foreign land and
property ownership, once registered, would be
respected. This has been done and the first cases
have been to court, and as long as the owner can
substantiate his original payment for the property,
then deeds are issued and are safe to purchase.
Purchase before formal issue of deeds needs should
be cautioned and subject to legal advice.
f) Lease from Government: It is also possible
to lease land or property from the Government.
These are usually derelict houses, which the Government
will lease out for periods up to 49 years to foreigners
who renovate the property at their own expense,
and who pay a nominal ground rent for the lease
period.
The process
for buying a freehold property is as follows:
1. Decide the best property for you and
agree price.
2. Contract is drawn up and reviewed by
solicitor. This will set down the terms of sale,
i.e. price, timescale, vendor, purchaser, and
any special conditions.
3. All relevant paperwork to be signed
by vendor and purchaser.
4. Purchaser provides deposit.
5. Solicitor applies for a Purchase Permit
from the Council of Ministers, (takes 6 to 8 months).
6. Payments are paid to vendor as per the
contract of sale.
7. As soon as purchase permit is received,
remaining balance due from purchaser.
8. Purchaser pays balance and Vendor signs
title deed into name of purchaser.
9. Sale completed.
Buying
from a foreigner (i.e. English, German etc.)
The checks have already been carried out by ministry
and therefore the process will be a lot simpler
and quicker.
1. Decide the best property for you and
agree price.
2. Solicitor prepares contract as before
and sets timescale.
3. Vendor and purchaser sign contract.
4. Purchaser pays full amount, unless a
delayed completion is agreed in which case purchaser
pays a 10% deposit and remaining balance on completion.
5. Title transferred to purchaser's name.
6. Sale completed.
Process for buying a
leasehold property is as follows:
The process to purchase is much the same as freehold
purchases, however, instead of an application
going to the Ministry of Interior, you must apply
either directly or via a solicitor to the Ministry
of Tourism, who will grant the leases.
At the time of application a deposit of 10% must
be paid and held on behalf of the Vendor. Once
the application is accepted, the sale can proceed
to completion at a convenient time for both vendor
and purchaser. At this stage the lease will be
transferred into name of the buyer.
1. Decide the best property for you and agree
price.
2. Contract drawn up by solicitor agreeing
terms & conditions.
3. Vendor & purchaser sign.
4. Vendor applies to Tourism Office to
transfer lease.
5. Purchaser applies to take over lease.
(May include personal interview)
6. Once Purchaser application is approved,
10% deposit transferred.
7. On completion, remaining balance paid
over to vendor and lease transferred.
8. Sale completed.
The typical costs of
buying North Cyprus property:
1. Purchase permit application, e.g. TRNC
(Turkish Republic of Northern Cyprus) or original
Turkish title = £1000.
2. Contract of transfer - e.g. Foreign
title = £600.
3. Stamp Duty = 6% of valuation levied
by Land Registry. 1% Municipality Tax on 6% Stamp
Duty.
NOTES:
1. When buying Turkish Title or TRNC (Turkish
Republic of Northern Cyprus) Title foreigners
are restricted to 1 Donum of land.
Deposits can be higher than 10% dependant on stage
of build.
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