Title Deeds in Northern Cyprus

Northern Cyprus is moving closer towards worldwide recognition and acceptance each month and as it moves closer, so the property market in North Cyprus develops, matures and heats up as confidence in it grows.

Most real estate investors are fully aware that the situation that exists currently with houses on the South of the island priced at least 50% higher than those in the North cannot last. House prices in the North are set to come into line with those in the Republic of Cyprus, house prices in the South themselves are continuing to rise year on year as well.

It’s obvious that Northern Cyprus is an excellent place for property investment right now but still the question keeps being asked - “is it legal and safe to buy property in North Cyprus?”

Well, let’s examine this question in detail beginning with the question of ‘legality’ - without entering into a political discussion and risking the alienation or offence of members of any one of the various communities who call Cyprus ‘home’, and while I am not qualified to give an authoritative opinion about the legality or ‘safety’ of specific property purchase deals, I can tell you that both the Greek and Turkish Cypriot communities agree that certain types of land and house purchase in the North are 100% legal.

Safety - Following the 1974 war in Cyprus the Turkish Republic of Northern Cyprus has been politically annexed, however in May 2004 the situation finally began to change when every Cypriot passport holder - regardless of whether they were Greek or Turkish Cypriot and regardless of where in the world they lived - was granted the status of ‘European Citizen’. This means that although the TRNC remains officially ‘unrecognised’, all Turkish Cypriots carry an EU recognised passport and all residents of any EU member state are free to pass across the borders between North and South Cyprus unrestricted. Political leaders worldwide agree that the situation in Cyprus has to be resolved and work is on-going to reunite the island in the best way possible for all sides concerned. Furthermore, direct flights to Ercan are being discussed, Turkey moved one significant step closer to EU accession in 2004 and significant outbreaks of unrest between the Turkish and Greek Cypriots are unheard of. Therefore the general consensus of opinion is that it is indeed ‘safe’ to buy property in North Cyprus.

Before you contemplate purchasing however, it’s essential that you make yourself familiar with the different types of title deed available in North Cyprus…

A) Internationally recognised title deeds. Property or land with the following title deeds are internationally recognised and are considered both safe and legal to purchase or sell.

1: Foreign ownership pre 1974 - land or property with this title deed is rare and highly valued. The purchase of property with this type of title deed provides the quickest route as there is no requirement for the approval of the Council of Ministers.

2: Turkish Cypriot owned pre 1974 - again, land or property with this title deed provides excellent value and opportunity. Once purchased, the property can be registered in your name only after approval has been sought by the Council of Ministers.

B) Deeds subject to a final resolution. In the majority of cases property or land with these types of title deed are considered safe and legal to purchase or sell, however there is an element of risk involved until a final resolution regarding the division of the island is reached. If you are in any doubt or would like further unbiased, legal opinion, I would strongly recommend you visit a lawyer when in the TRNC to make yourself aware of the situation fully; this will then enable you to make your own appraisal of the situation. No one can tell you the exact outcome of the final resolution, however as mentioned earlier, please remember that the Greek and Turkish Cypriot communities are moving ever closer to a peaceful and long term resolution - therefore it is regarded as ‘highly unlikely’ that extreme decisions will be made in either direction.

1: TRNC Absolute Possession Document - this is usually the deed that accompanies land or property given to the Turkish Cypriots who fled the South after the 1974 war and who left all their possessions behind for the Greek Cypriots.

The North Cyprus Government assessed the forsaken assets in the South on a points basis and issued land and houses in the North to the refugees - this was in direct compensation for the lost assets on the South - the refugee then signed over his property in the South to the North Cyprus Government to be held pending a negotiated resolution and settlement.

The owner of such a title deed is allowed to sell the property it relates to.

2: Lease from the TRNC Government - the Government in Northern Cyprus sometimes offers up land and property for lease.

The lease usually lasts for up to 49 years and is issued on properties that are in need of some serious TLC, those who are willing to renovate at their own expense will be granted a lease.

C) Deeds considered ‘unsafe’. There are two types of title deed that should be considered unsafe until a final resolution is made. If you set your heart on land or property that holds one of these deeds I cannot emphasise strongly enough your need to seek qualified legal advice before proceeding.

1: Greek Cypriot owned pre 1974 - some properties exist that are unclaimed and have no title deeds at all, these are considered to be Greek Cypriot owned and hold this title deed. You have no right to buy or sell such properties, however sometimes you find them on the market at low cost - these houses are most definitely not safe to buy. If you’re compelled by such a property and wish to go ahead anyway, you must seek independent legal advice.

2: Contractual or “cases pending” land or property - in 1974 when the situation on the island was chaotic and strained some properties were simply never issued title deeds...they effectively slipped through the bureaucratic net. A statement was subsequently issued by the Government in TRNC stating that once land and property of this type was officially registered it would be respected.

The process now is for the owner of such a property to register it by proving in court that payment was made for it - either monetarily or in points. Title deeds are then issued and from this point forward the property can be resold and bought.

Purchase before the formal legal issue of the deeds is advised against.