The Property Buying Process

From the outside the property buying process in Northern Cyprus can seem a little complicated and even daunting. This is partly due to the various different types of title deed that can be attached to land or a house and partly because the system differs a little from that in other European countries with purchase permissions needed to own property in North Cyprus for example.

However, first appearances can be deceptive because with a little explanation and some clear guidance the buying process needn’t be difficult, and in many cases it is swift, smooth and quite a bit easier and cheaper than the processes in other countries!

It’s necessary to split this article up into three parts depending on the type of title deed attached to your property...so we’ll look at the process when you buy freehold Turkish title real estate, the process when you by freehold foreign title property and finally the process for acquiring leasehold land or property.

Furthermore I must point out that there is actually no such thing as a ‘typical’ buying process as many factors can vary per transaction, per person, per property, per solicitor etc., but the following three outlines should give you a general overview of what to expect when buying property in Northern Cyprus.

1) Buying freehold Turkish title property that holds a TRNC Absolute Possession Document.

The first step is of course to locate the property or land that suits your requirements and agree a price for the purchase with the owner. This part of the transaction is often managed by your estate agent.

Once a sale has been agreed in principle you may be asked to pay a small deposit to secure your interest in the property - up to a value of around £1,000.

Then a solicitor will draw up a legally binding contract stating all the terms of the sale and detailing any specific criteria, restrictions, terms that are pertinent to your particular circumstance - for example if you are securing finance for the property the contract may be conditional to you securing that finance, or conditional to satisfactory surveys etc. Furthermore, if you are buying before or during the construction period the completion date and contingency should be added to the contract for example.

Once the contract has been written to the satisfaction of all parties concerned both purchaser and vendor must sign it in front of independent witnesses.

At this point (or usually within 14 - 21 days) up to a 50% deposit will be required if the property is new build or the full amount will be required if it is a re-sale.

The buyer’s solicitor will then have to apply to the Council of Ministers for his client’s permission to purchase. Usually this is simply a legal formality - unless the buyer has been involved in serious crime against Turkey or Northern Cyprus or the property is overlooking army land. The whole process has been known to take up to 18 months but this does not mean you cannot take occupation and assumed ownership of your property in the meantime...like I said the ‘Purchase Permit’ is on the whole merely a legal formality.

If buying off plan or during the construction phase the remaining amounts of money will be required in instalments during the build and/or once the property is completed and handed over.

Sometimes money amounting to 5 - 10% is held back until a) permission to purchase is received and/or b) the purchaser is happy any initial small bugs with the new property have been ironed out.

It is important that the purchaser is happy with the terms and conditions of the initial contract signed especially in relation to the amounts of money to be paid and the dates due as well as the designated length of time to property completion.

As soon as the purchaser pays the final balance the vendor will hand over the title deeds and the sale is completed.

2) Buying freehold title property, either Turkish Cypriot owned pre 1974 or Foreign owned pre 1974.

Property bearing these types of title deed are hugely desirable but often difficult to locate and secure as they are so in demand. Basically land or property with this title is already internationally recognised and recognised as legal to buy and sell by the Council of Ministers so title deeds can usually simply be handed over without the 18 month wait for permission to buy.

As with any purchase process the first stage is finding the ideal property and making an offer on it. At this point a solicitor draws up a contract as before and both the purchaser and vendor sign it before witnesses.

Payment terms are agreed and once the property is completed, the full purchase price is paid then the buying process is completed and the title deeds arte transferred into the name of the purchaser.

3) Acquiring leasehold land or property.

The entire process is similar to that discussed in scenario 1 however permissions to take on the lease are granted by the Ministry of Tourism not the Council of Ministers.

Once the ideal property is located and terms of the lease agreed with the contracts being drawn up by a solicitor and signed by purchaser and vendor the application is made to the Ministry of Tourism by the vendor or his solicitor for a transfer of the lease.

The purchaser has to state his will and desire to take over the lease and at this point he may have to undergo a personal interview where he will be asked about his plans for the property or land.

Once the application to take on the lease is made a 10% deposit is taken and held on behalf of the vendor pending successful application. Upon successful application the money is passed to the vendor and the sale moves forward to completion whereupon the final balance is required and the lease is transferred to the purchaser for the remaining duration of its lease period.

If you’re considering buying any type of property in Northern Cyprus I cannot stress strongly enough your need to appoint independent legal representation to make sure your best interests are protected every step of the way.