|
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.
|
