B U Y E R ' S G U I D E
Property
Title Deeds & Purchase Procedure in TRNC
As this country eases towards a settlement with the south of the
island and a possible accession into the European Union, we
examine the pros and cons of the freehold and leasehold
property purchasing opportunities. The most crucial factor in
buying property, whether it be land or buildings, is to use a
qualified lawyer in all cases for all contracts and Government
applications. There are various forms of title deeds, as
described below:
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The
Title Deeds
There are three different types of Title Deeds ("Kocan"
in Turkish) available in Northern Cyprus:
FREEHOLD
( FOREIGN OR TURKISH ) TITLE, TRNC TITLE and LEASEHOLD TITLE.
FREEHOLD
- FOREIGN TITLE
This is property owned by European residents, (e.g.. 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 property Turkish Cypriot owned prior to 1974. Foreigners
are limited to one donums per person (husband and
wife count as one person unless they have different surnames).
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
The property with TRNC Title Deed (Kesin Tasarruf Belgesi
- Absolute Possession Document) was previously Greek Cypriot
owned prior to 1974 - before the war. 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. When
the Turkish Cypriot refugees came to the safety of the north
after July 1974, they left all their possessions behind in
the south. Accordingly, the Government then assessed on a
points basis, the value of the refugee's forsaken assets in
the south. With these points, the Turkish Cypriot refugee
could take a relinquished Greek Cypriot house or land in compensation
for his lost properties. He would then sign over his properties
in the south to the TRNC government, who would then hold them
pending a negotiated settlement between the north and south
Governments. The refugee would then be issued with a title
deed for his newly recompensed property. Until he received
this title, he would not be in a position to sell.
Our
feeling is that the island is very near to some sort of solution,
whether it will be a negotiated settlement or in any other
way, then the TRNC title deed properties can be considered
safe to purchase.
LEASEHOLD
TITLE
The Government owns this 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.
NOTICE:
Also, there is Land or Property which belonged to Greek Cypriot
pre '74 - no title deeds - yet un-issued. Some people offer
for sale, for relatively nominal sums, these properties without
deeds. They are sold for "air money" or "goodwill"
usually. It is our opinion that agreements should not be entered
into for property that does not have a title deed issued by
the relevant authority.
BUYER'S GUIDE FOR FREEHOLD TITLE
The process for buying any freehold property is as follows:
| 1.
|
Secure
property and agree price - the validity of the title deed
is checked and confirmed by us via Notary Public. |
| 2. |
Contract drawn up by Notary Public or Solicitor, setting
down the terms of sale, i.e. price, timescale, vendor,
purchaser and any special conditions. In many cases, the
purchaser returns to the UK or wherever, and the chosen
Power of Attorney attends to the completion in the purchaser’s
absence. |
| 3. |
Vendor and purchaser sign. |
| 4. |
Purchaser pays between 10 to 25% deposit as demanded by
the vendor. |
| 5. |
Solicitor applies for a Purchase Permit from the Council
of Ministers, (takes 3 to 6 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. |
| |
|
| |
|
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
BUYER'S GUIDE FOR 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.
1- Secure property and 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.
N.B.
When buying a Turkish Title or a TRNC Title foreigners are
restricted to 1 donum of land (1,388 m²
or 1/3 acre). This restriction does not apply when buying
Foreign Title property. Please enquire as to which title is
attached to the property of your choice.
.
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