Buyers Guide
There are 4 types of title deeds offered in Northern Cyprus. The process to purchase your property is dependent on which title deed your property holds.
Freehold - Foreign Title
This is property owned by European residents, (eg. British, German, Dutch). The title deed is internationally recognised. There are a number of checks to be carried out by the Council of Ministers, which means the sale will take approx. 3-6 months to complete.
Freehold - Turkish Title
This is Turkish Cypriot owned property prior to 1974. There are a number of checks to be carried out by the Council of Ministers, which means the sale will take approx. 3-6 months to complete.
TRNC Title
This property was previously Greek Cypriot owned prior to 1974. Again there are a number of checks to be carried out by the Council of Ministers, which means the sale will take approx. 3-6 months to complete.
Leasehold Title
The Government owns this type of property. Long-term leases are granted for 49yrs. You can apply directly or via a solicitor to the Ministry of Tourism to transfer the lease
Freehold Title
The process for buying any freehold property is as follows:
- Secure property and agree price.
- Contract drawn up by solicitor, setting down the terms of sale, i.e. price, timescale,
vendor, purchaser and any special conditions.
- Vendor and purchaser sign.
- Purchaser provides 10% deposit.
- Solicitor applies for a Purchase Permit from the Council of Ministers, (takes 3 to 6 months).
- As soon as purchase permit is received, remaining balance due from purchaser.
- Purchaser pays balance and vendor signs title deed into name of purchaser.
- Sale completed.
The costs involved are as follows:
Solicitors cost, including; drawing up of contract, power of attorney, purchase permit application and seeing sale through to completion = £1,000
Leasehold Title
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 grant the lease.
At the time of application a deposit of 10% must be paid and held on behalf of the vendor. Once application is accepted the sale can proceed to a completion at a convenient time for vendor and purchaser and then the lease is transferred into name of the buyer.
- Secure property and price.
- Contract drawn up by solicitor agreeing terms & conditions.
- Vendor & purchaser sign.
- Vendor applies to Tourism Office to transfer lease.
- Purchaser applies to take over lease. (May include personal interview)
- Once Purchaser application is approved, 10% deposit transferred.
- On completion, remaining balance paid over to vendor and lease transferred.
- Sale completed.
Solicitors cost, including; drawing up of contract and power of attorney = £300
How many square metres is a donum?
Land in Northern Cyprus is measured in donums. 3 donums equals 1 acre. 1 donum equals 1388 square metres.
Purchasing a land or house or investment with respect to a property development business is an important decision which has to require the opinion of a local lawyer.
After the division of the island, in 1974, North Cyprus has developed its own rules and different legal system has been constituted by the Turkish Cypriots. In relation to purchase of a land or house, first issue which has to be clarified is the kind of the title deed as there are different kinds of deeds under North Cyprus legal system. The property alternatives with different deed types are as follow:
a) British or other foreign ownership pre- 1974
b) Turkish Cypriot owned pre- 1974
c) Greek Cypriot owned pre- 1974: Given to Turkish Cypriots due to their lands left in South Cyprus or awarded to Turkish Cypriots by Turkish Republic of Northern Cyprus ("TRNC") government. Based on 1983 TRNC Constitution, all the deeds rectified and named as TRNC deeds and are freely transferable to foreigners
d) Leasehold - owned by the Government who will grant long-term leases of 49 years
LEGAL TIPS PRIOR TO PURCHASE:
Prior to purchase, ALWAYS:
- Ask a copy of the title deed
- Check the sheet plan - plot references and the site plan,
- Look at the site plan and ascertain from its boundaries its shape and boundaries,
- Check the construction availability (from State Planning Office)
- Make a land search to understand; if there is a deed, the kind of the title deed and whether there is any encumbrance on it (from Land Registry),
- Always make a contract before making any payment.
ONCE A PROPERTY HAS BEEN DECIDED UPON
After deciding on a property you may wish, a land search should be made and subsequently a contract should be signed with the vendor.
It should be noted that according to Property Purchase (Foreigners) Law and the related regulations, Law No: 109, Foreigners' purchase is limited to one donum (donum is a measure of land equivalent to 1600 square yards, 1,338 sq. meters or 14,400 sq. ft., 0.336 acre) of land (unless the foreigner forms a company or constitute a trust with a local person). A permit to purchase from the Ministry of Interior is then applied to get the permission to purchase. This may take between six and eight months. Once this permit has been issued, remaining balance is then paid to the vendor. After the issuance of the permit, Purchaser is entitled to register his/her name to the land registry as registered legal owner. Purchaser would then need to be in Cyprus to sign the relevant papers; the change of ownership. In case where the Purchaser is not at Cyprus at the time of the transfer, a power of attorney may be issued on behalf of Purchaser's local counsel and transfer may be executed in this way.
A purchase tax is applicable on all freehold property at 6%, in addition a 1% charge of the 6% is also applicable which is paid to the municipality where the property is located.
This information is not a legal opinion and has been prepared to give general information about the TRNC Real Estate law.
