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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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