BUYER'S
GUIDE
The timescale for
purchase will to a large degree depend upon the type of title that
exists.
Buying a Turkish or TRNC 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 6-8 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. Property in this category provides the quickest route to
purchase as there is no requirement for Council of Ministers
approval.
b) Turkish Cypriot owned pre-1974: Before the 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.
c) TRNC: - absolute possession document - title deed. Land or
property, originally owned by a Greek Cypriot prior to 1974, with
title deeds issued by the TRNC 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.
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.
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 drawn up by solicitor, setting 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 10% deposit.
5. Solicitor applies for a Purchase Permit from the Council of
Ministers, (takes 6 to 8 months).
6. As soon as purchase permit is received, remaining balance due
from purchaser.
7. Purchaser pays balance and Vendor signs title deed into name of
purchaser.
8. 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 property:
The main costs incurred are as follows:
- Purchase permit application, e.g. TRNC or original Turkish title =
£1000
- Contract of transfer – e.g. foreign title = £600
- Stamp Duty = 6% of valuation levied by Land Registry
- Legal fees.
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