A Guide to Buying Property in North Cyprus

Purchase Procedure

Once you have chosen your property with us the purchase procedure is simple:

1 – Secure your chosen property and agree the price – the validity of the title deed is then checked by your solicitor.

2 – If you are not going to be in Northern Cyprus during the build then a Power of Attorney is drawn up with a solicitor to act on your behalf. This is then taken to the notary to be registered.

3 – A contract is then drawn up by your solicitor, setting down the terms of sale, i.e. price, payment terms, timescale, vendor, purchaser and any extra requirements. In many cases, the purchaser returns home, the contract is then emailed for you to check and only once you have approved it will your solicitor proceed with the purchase in your absence.

4 – The vendor and you as the purchaser will then sign the contract.

5 – The purchaser then pays the agreed deposit to the vendor.

6 – Your solicitor applies for your Purchase Permit from the Council of Ministers; this is currently taking up to 18 months to come through.

7 – Our local associates will act as the main point of contact between you and your builder, we will keep you updated on the progress of your property and send you regular pictures.

8 – Upon completion of your property you will make your last payment to the builder.

9 – As soon as your purchase permit is received you will then pay the retention payment to the builder.

10 – The vendor will then transfer the title deeds into your name and this is when your taxes are payable. The sale is then complete.

WE AT OPC HAVE VERY STRINGENT GUIDELINES WHEN TAKING ON NEW PROJECTS, In order for us to promote properties we require the following documents for our files and for the reassurance of our clients.

LIST OF REQUIREMENTS FOR NEW PROJECTS

· Copy of Title Deeds - If the land is not in the vendor’s name a copy of the sales agreement or Power of Attorney is required.

· Copy of the Land Registry Site Plan

· Copy of the Building Permission or File Number

· Site Plan - Buildings, pools etc layout on the site, numbered and with north indication

· Floor Plans - With room dimensions

· Pictures - 3D Pictures or artist impression

· Full Specificitaions - Measurements, standards, materials, extras list and detailed info

· Plot size and property size

· Payment Plan - If available

Company Registration Documents - If a construction company, builder’s registration with the official body that certifies the builders.

LEGAL ADVICE

We can introduce you to independent English Speaking Solicitors with whom you can consult. It should be noted that according to Property Purchase Law and the related regulations, foreigners’ purchase is limited to one donum of land, which is 1/3 of an acre or to one property. However there is no limit to the amount of property and land that can be purchased by a local company. Legal Tips Prior to Purchase First and foremost appoint a solicitor who will request the following:

· Copy of the title deed

· The site plan – detailing plot references

· Check the site plan and ascertain its shape and boundaries

· The construction availability (from State Planning Office)

Make a land search to understand; if there is a deed, type of deed and whether there are any encumbrances attached to the property.

TITLE DEEDS

There are three different types of Title Deeds available in Northern Cyprus

FREEHOLD (FOREIGN OR TURKISH) TITLE, TRNC TITLE and LEASEHOLD TITLE. FREEHOLD – FOREIGN TITLE PRE 1974

This is property owned by European residents, (e.g. British, German, and Dutch). The title deed is internationally recognized.

FREEHOLD – TURKISH TITLE PRE 1974

This is property which was Turkish Cypriot owned prior to 1974.

TRNC TITLE

There are two different types of TRNC title deed:1 – ESDEGER (Exchange). The property / land was Greek Cypriot owned prior to 1974. When the Turkish Cypriot refugees came to the safety of the North after July 1974, they left their properties and possessions in the South and so the government then assessed on points basis, the value of the refugee’s forsaken land in the south and in exchange for that land they were given property / land in the North. 2 – TMD Again the property / land was Greek Cypriot prior to 1974. This is land that the government gave to Turkish people as a gift for services to the government.

LEASEHOLD

The government owns the property. Long-term leases are granted for 49 years.

COSTS TO CONSIDER

When purchasing property or land in Northern Cyprus there are other charges you must take into account when deciding on your budget, these are: Payable upon completion of the property:

· 5 % KDV (VAT)

Payable upon transfer of title deeds into the purchaser's name

· 3 % Purchase Tax

· 1 % of the 3 % Local Council Fees

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