The process of buying property in Northern Cyprus consists of several steps:
- Selecting a property
- Reserving a property
- Drawing up and signing the Contract of Sale
- Registration of the Contract of Sale in the TRNC Land Registry
- Transferring the title deed to the purchaser's name
If you have decided to purchase a property on the Mediterranean coast in Northern Cyprus, it is essential to view all the options that interest you personally. You can use our programme of “Free Property Inspection Trip” and familiarize yourself with all the offers available on the spot. You can get more information about the organization of the trip on our website in the section of « Free Property Inspection Trip ».
The legal purity of the deal
Given that the drafting of the Contract of Sale is a complex process, you can't do without legal support. A solicitor analyses the property developer's documents and checks that the relevant building permits, construction permissions and approvals have been obtained. Then the solicitor draws up the Contract of Sale. The contract with the solicitor is concluded on the date of signing of the Contract of Sale. Legal support costs about £1,300. You can find more detailed information on our website in the section of “Legal services” or ask any questions you have during the “Free Property Inspection Trip”.
Agreeing on a payment plan
Once you have decided on the property you want to buy, your first step is to agree on the property cost, terms of the contract and a payment plan.
1. Standard payment plan for completed objects (+3 months for finishing works):
- 60% of the price has to be paid by the time you get the keys (as your apartment will be delivered in 3 months after signing of the contract, you can split this sum into 3 payments);
- You are provided with an interest-free 24-month installment payment plan for the remaining 40% of the cost (if necessary, you can take a loan).
2. Standard payment plan for objects under construction::
- A down payment is 30% of the acquired object value;
- Another 30% have to be paid by the time you get the keys (are payable within the whole construction process in equal instalments – monthly/quarterly);
- You are provided with an interest-free 24-month instalment payment plan for the remaining 40% of the cost (you can also take a loan, if necessary).
Payment plan is agreed upon with a buyer individually before the Contract of Sale is signed. Then a buyer has to pay the reservation fee of €1,000 to secure the property and have it removed from the market. The amount of the reservation fee does not depend on the cost of the property and forms part of the purchase price.
Drawing up the contract
The Contract of Sale is drawn up by the solicitor and is the main legal document confirming that the purchase and sale transaction has taken place. It comprises the information about the new owner and their rights to carry out transactions with the given property, including leasing and further alienation (sale, gifting, bequeathing) of the property. Such document as “a technical passport” of the property does not exist in Northern Cyprus and all the relevant information, including floor plans, the title deed and etc., are provided in the form of attachment to the Contract of Sale as its integral part. Moreover, the contract comprises the information about the seller and the buyer of the property, the detailed description of the subject of the contract – a property (address, registration data, technical specifications, the number of rooms, covered area, the right to use communal territories, etc.). The contract also includes the details of the terms of the transaction – property cost, the amount of the deposit paid, payment plan and the key delivery terms.
The Contract of Sale can be drawn up in pounds sterling, US dollars or euros at the buyer's request. All the arrangements and terms agreed upon with the developer have to be stated in the contract or its attachments, otherwise they are not legally valid.
The Contract of Sale also states the fact that the property is not in security and is free of any third-party claims and rights, which is additionally checked by the lawyer before the signing of the contract. The Contract of Sale also comprises the clauses protecting the interests of the property buyer as well as penalties applied to the developer for failing to comply with the contract. The contract is drawn up in English and Turkish, in triplicate, all the copies having equal legal power. The legal services are partly or fully paid for (depending on the agreement reached, after signing the Contract of Sale).
Registration of the contract in the Land Registry.
Once you have signed the Contract of Sale, it must be registered in the TRNC Land Registry. For having the contract of sale registered, you have to pay the Stamp Duty. The amount of the fee is 0,5% of the value of the acquired property object, specified in the contract. The Contract of Sale has to be registered in the Land Registry within 21 days after being signed. The registration is carried out by a solicitor. In the Land Registry, the Contract of Sale is stamped, which confirms the legal validity of the transaction. Once the Contract of Sale has been registered, it acts as a charge on the property and protects you from the risk of double sales or mortgages.
Registered Contract of Sale confirms your ownership of the acquired property in TRNC. This contract entitles you to obtain a Residence permit in Northern Cyprus, use the property personally, lease or even sell it, if necessary.
Transfer of Title
The final step of the purchase procedure in Northern Cyprus is obtaining the title. All the necessary documents are prepared by a solicitor.
For obtaining the title deed in Northern Cyprus, a non-TRNC citizen has to obtain a special purchase permit issued by the TRNC Council of Ministers. The permission is issued on the request of the solicitor acting on the buyer's behalf (or on the request of the buyer's trustee). In order to obtain the purchase permit, the buyer needs to provide their clear criminal record certificate which can be issued by your local police department in your country. The certificate must be notarized or have an apostille stamp affixed to it.
Once the purchase permit from the Council of Ministers has been granted, the property is transferred to the buyer's name and the buyer gets separate (or shared, if the complex hasn't been completed yet) title deed. The procedure of getting the purchase permit from the TRNC Council of Ministers and the transfer of the title to the new owner's name takes from 4 months to 1 year. Before transferring the title deed to the buyer's name, the buyer has to pay the Transfer Fee of 3% of the assessed value (if it's their first property purchase). Learn more about taxes in Northern Cyprus in our section of « Taxes in Northern Cyprus ».
You can get a more detailed information from our specialists as well.