Property Title Deeds & Purchase Procedure in TRNC

The Turkish Republic of Northern Cyprus enjoys a typical Eastern Mediterranean climate with long hot summers and short mild winters. The northern coastline which borders the Girne (Kyrenia) mountain range is accepted as being one of the most beautiful areas in the world in which to live. The natural beauty of the island, the lovely climate, the warmth and generosity of the Turkish Cypriot people and the abundance of fresh foods make Northern Cyprus an unspoilt and uncommercialised haven. There is virtually no crime to speak of and this country is reminiscent of UK standards long lost where hospitality, politeness and the general enjoyment of life are the daily norm.

As this country eases towards a settlement with the south of the island and a possible accession into the European Union, we examine the pros and cons of the freehold and leasehold property purchasing opportunities. The most crucial factor in buying property, whether it be land or buildings, is to use a qualified lawyer in all cases for all contracts and Government applications. There are various forms of title deeds, as described below:

The Title Deeds
There are three different types of Title Deeds ("Kocan" in Turkish) available in Northern Cyprus:
FREEHOLD (FOREIGN OR TURKISH) TITLE, TRNC TITLE and LEASHOLD TITLE

FREEHOLD - FOREIGN TITLE
This is property owned by European residents, (eg. British, German, Dutch). The title deed is internationally recognised. There are a number of checks to be carried out by the Council of Ministers, which means the sale will take approx.
3-6 months to complete.

FREEHOLD - TURKISH TITLE
This is property Turkish Cypriot owned prior to 1974. Foreigners are limited to one dönüm per person (husband and wife count as one person unless they have different surnames). There are a number of checks to be carried out by the Council of Ministers, which means the sale will take approx. 3-6 months to complete.

TRNC TITLE
The property with TRNC Title Deed (Kesin Tasarruf Belgesi - Absolute Possession Document) was previously Greek Cypriot owned prior to 1974 - before the war. Again there are a number of checks to be carried out by the Council of Ministers, which means the sale will take approx. 3-6 months to complete. When the Turkish Cypriot refugees came to the safety of the north after July 1974, they left all their possessions behind in the south. Accordingly, the Government then assessed on a points basis, the value of the refugee's forsaken assets in the south. With these points, the Turkish Cypriot refugee could take a relinquished Greek Cypriot house or land in compensation for his lost properties. He would then sign over his properties in the south to the TRNC government, who would then hold them pending a negotiated settlement between the north and south Governments. The refugee would then be issued with a title deed for his newly recompensed property. Until he received this title, he would not be in a position to sell.

Our feeling is that the island is very near to some sort of solution, whether it will be a negotiated settlement or in any other way, then the TRNC title deed properties can be considered safe to purchase.

LEASEHOLD TITLE
The Government owns this property. Long-term leases are granted for 49yrs. You can apply directly or via a solicitor to the Ministry of Tourism to transfer the lease.

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NOTICE:
Also, there is Land or Property which belonged to Greek Cypriot pre '74 - no title deeds - yet un-issued. Some people offer for sale, for relatively nominal sums, these properties without deeds. They are sold for "air money" or "goodwill" usually. It is our opinion that agreements should not be entered into for property that does not have a title deed issued by the relevant authority.

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BUYER'S GUIDE FOR FREEHOLD TITLE
The process for buying any freehold property is as follows:

1. Secure property and agree 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 the UK or wherever, 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 3 to 6months).
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

BUYER'S GUIDE FOR 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 (1,388 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.