Q. What do we need to be careful of when deciding to buy a property in the TRNC?

A. There are 4 critical steps to be followed
Step 1 – Ask the vendor to see the original title deed (kocan) of the property / land, and take this to your lawyer.
Step 2 – Your lawyer will then need to make an application on your behalf, to the land registry office for a site plan, and search of the property/land.
In some cases these might already be available from the vendor. If so then all you need to do is show these to your lawyer.
The site plan is a map showing the exact location of the property/land you intend to buy. The location on this site plan should coincide with the information given on the title deed, therefore ensuring that you are buying what you have been shown.
The search which needs to be obtained will prove the identity of the last owner of the property/land. This will not only prove the last owner but will also show whether the property/land is free of any charges or encumbrances.
This procedure can take between 15-20 days to be obtained.
It is important that these procedures are completed before signing any contracts. Therefore if it is not possible for you to return in time for when your lawyer gives you the go ahead to sign, then you can provide your lawyer with a power of attorney.
If the property/land is owned by a Company then your lawyer should ask to see the Company registration details to ensure that the vendor is a director, or has authorisation to sell.
Step 3 – Your lawyer will need to check with the site planning office to ensure that there are no restrictions about construction on the land.
Step 4 – Once all the above is completed and your lawyer has advised and given you the all clear to go ahead with the property purchase then you need to sign a contract with the vendor.

Q. Is there a limit as to how much we can purchase as foreign citizens?

A. As a rule, foreign individuals (those who are not registered citizens) may not acquire more than one property e.g more than one apartment or more than one villa or land in Northern Cyprus larger than 1 Donum in size. This is the current law governing this issue.

Q. How many types of Title Deeds exist in the TRNC? And what are the differences between them?

A. Due to the division of Cyprus in 1974, different types of deeds have come into existence, and it is important that you are aware of the type which you purchase.

The first of these is Turkish title deeds. This means that the property/land was Turkish Cypriot owned pre-1974. This type of title deed carries no risk to the purchaser.

The second is “Es Deger”- meaning of equal value. This type of title deed was Greek owned pre-1974, After the war however they abandoned their land and fled to the South , as did the Turkish Cypriots from the South to the North. Therefore this land was then given to Turkish Cypriots in return for land which they left behind in South Cyprus. This kind of deed may possibly carry a certain risk in the way of compensation. At this stage however it is unclear as to who will pay this compensation, the government or individual peolple.

The Third of these title deeds is Turkish Mainland Deed (TMD) Land. TMD land at the time (After the war) was unoccupied by land. This land was used as an incentive to increase the TRNC population by inviting mainland Turkish citizens to take ownership of the land and to settle in the TRNC. This kind of title deed may also possibly carry the risk of compensation (only if construction has begun on the land).

Q. What are the Taxes / Vat which I will be eligible to pay for when taking possession of title deeds?

A. A Valuation will be made by the land registry and based on that valuation, VAT will be payable at a rate of 5%. This valuation does not normally exceed the sales value of the property.
You will also need to pay land registry duty which is payable by any one purchasing in the TRNC, and this will be 6% of the valuation.
(Please note that these rates may possibly change in the future, and you should always check at time of signing a contract.)

Q. What aspects do we need to be careful of when signing a sales contract?

A. It is a good idea to have your lawyer present when signing.
Firstly ensure that the date and place of signing is included somewhere in the contract. Without this the contract is not complete.
It is important that you read the contract carefully, to ensure that everything which you have agreed with the Vendor is included in the contract, and that anything which you have not is not included.
If there are any aspects of the contract which you do not understand you should always ask to be explained.
Ensure that the person signing your contract is eligible to do so, in that they are either a director of the company whom you are buying from, or they have authorization to sell, by asking to see documentation proving this, e.g. company registration details.
Every page of the contract, including appendix’s needs to be initialed by both parties signing, and then the final page signed.
Two witnesses should be present when the signing takes place, and they need to sign the contract as witnesses. Without their signatures your contract is not valid.
Do not sign until you are 100% happy with the whole contents of the contract.

Q. Why is it necessary to have a Sales contract stamped by the financial office (office which is apart of the Ministry of finance)?

A. The purpose of having a sales contract stamped is not to make it valid.
If a dispute arises between yourselves and the opposite party, and the contract needs to be used in court as evidence, then it can only be done so if the contract has been stamped.
To have a contract stamped within one month of signing it, the cost is 0.005% of the sales value stated in the contract. However after this month this cost will increase and a late penalty fee will be added.
Therefore it is best to have this done at time of signing to be prepared for any problems which may or may not occur.

Q. If the Vendor does not fulfill any of his responsibilities as stated in the sales contract, what action can we take?

A. At such a time you have the right to terminate the contract and to seek compensation, depending on the clauses which have been included in your contract with regards to this. If however no such clauses have been included (which in that case the contract was not complete and you should not have signed) then you are still entitled to claim back all the money which you have paid to the Vendor up until that time. You can also claim back any extra expenses which you have incurred as a result of the vendors actions, but these must be proved by receipts etc.


Q. In the event that any problems arise relating to the sales contract which we have signed, what are the procedures and which courts will deal with such disputes?

A. First of all you need to sign a retainer, giving a local lawyer permission to open a case in court on your behalf.
The court that will deal with your case will be either be the court in the district which you signed the contract, or if you are living in North Cyprus, the court which is nearest to where you are a resident. In some contract a court is specified in case of any disputes.

Q. Can we sell our sales contract onto a third person when we so wish?

A. If the vendor does not object then it is possible for you to sell your sales contract onto another person. It is important however that your vendor accepts because without his acception to enter into such an agreement with another person that sales contract will not be valid.

Q. What is the procedure for foreign citizens to acquire permission from the Ministry of Interiors to take possession of TRNC Title deeds? How long does this procedure take?

A. Your lawyer needs to make this application for you. He/She will submit a form with your personal details on, copy of the title deeds relevant to your purchase, copy of side plan, and search, and a photocopy of your passport.
Once these have been submitted your lawyer, within about a week should be given a reference no for this application. That number is needed in order to make any enquiries about this application.
In reaching a decision about this the ministry will research to see if you have a criminal record in the TRNC. Whether your purchase is within the permitted size, and whether or not it is near any forbidden military zones.
It can take about a year for the results of this application to be released.

Q. What if our property has been completed and we have fully paid for it, but our permission has not yet been granted by the Ministry of Interiors?

A. It is important that there is a clause in your contract covering this point. It should state that once full payment has been made by the purchaser, a bill of sale will be issued, giving the purchaser the right to take vacant possession of the property as well as all ownership rights until the time that they able to take possession of the title deeds into their own name or appoint a third party of their choice who will take transfer of the title deeds.

Q. What is the likeliness of a case being brought against us by the Greek Cypriots for signing a sales contract, agreeing to purchase a property in TRNC?

A. No such cases can be brought against you because you have not yet been granted permission to take ownership of any title needs.

**If you have any further queries please do not hesitate to contact us via email or phone.