Property Buying Procedure in North Cyprus

North Cyprus Property Buying Procedure

With the increasing complexity of the property market and the constant introduction of new concepts and measures new for the island (although not so in the European countries) it is advisable that the potential purchaser seeks professional advice prior to concluding a deal in order for hardships and disappointments to be avoided. This advice is especially useful to the foreign purchaser who may encounter confusion with different laws and local attitudes. A solicitor or a notary public will be enough to make your life easy in your purchase.

Cypriots or persons of Cypriot origin and decent are allowed to purchase real estate property without any restrictions. All other nationalities, however, are given permission to acquire one of the following: an apartment, a house or a building plot or land of one donum (1338 m² or 14400 ft²). The permission of the Council of Ministers is required, which is obtainable in all bona fide cases, provided that the property is not intended for commercial exploitation. In certain cases, it is possible that the Council of Ministers will grant approval for the acquisition of a larger area of land. If the land is to be used for tourist development, especially if the intended project is in an area where the Government wishes to promote tourism. A similar stand is taken for certain industrial sectors.

The transfer of ownership is effected by a simple process of registration with the District Lands' Office, after gaining the purchase permit from the government.

• To get the purchase permit you apply to the government through a solicitor or a notary public. It takes 4 to 12 months to get the permission.
• The purchase permit application will cost you around £750 (cost of a good and fast notary public) or around £1,500 (cost of a good solicitor).

After gaining the purchase permit, in order to transfer the ownership, the prescribed application form should be completed for submission in person to the District Lands' Office together with the registration certificate of the property, a copy of the Council of Ministers' permission to acquire the said property and the evidence of payment of all the property taxes to date (these taxes may include sundry town taxes, sewage tax and road construction tax).

The information that is required to complete this application is the following: names and addresses of the vendor and purchaser, an identity card or passport number of purchaser, particulars of the property.

During the course of the registration procedure the value of the property will be reviewed by the District Lands' Office valuers, for the purpose of determining the amount of transfer fees payable, who may or may not accept the purchase value stipulated in the sale contract. The purchaser is liable to the payment of transfer fees on the basis of the value of the property as assessed by the District Lands' Office valuers i.e. the open market value of the property on the date of the transaction.

• The buyer pays 5% VAT over the price of the property.

The purchaser and seller may give specific powers of attorney to any third party to attend and execute the transfer on their behalf.

See Additional Costs for details

If you have any further concerns or questions, please contact us.

FREEHOLD TITLE
The process for buying any freehold property is as follows:

1. Secure property and agree a 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 their homeland, and the chosen Power of Attorney attends to the completion in the purchaser’s absence.
3. Vendor and purchaser sign.
4. Purchaser provides 10% deposit.
5. Solicitor applies for a Purchase Permit from the Council of Ministers, (takes 6 to 12 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

See Additional Costs for details

Confused about title deed types in North Cyprus?

LEASHOLD 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 (1,338 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.

Contact Unity Ltd.