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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 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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