Buying a property in Northern Cyprus whether a villa or apartment, new build or just land is a major investment so good advice is essential. Here is a brief yet informative guide to how the buying process works.

Victory Group property in Northern Cyprus is built on one of the following safe types of land:

Foreign Title Deeds Pre-1974
Owned by a British or foreign person with the kocan (title deed, pronounced kochan) clearly stating this. These deeds are internationally recognised and are 100% safe. They are also the quickest way to purchase property as they do not require the approval of the Council of Ministers. 

Turkish Title Deeds Pre-1974
Owned by a Turkish Cypriot. These deeds are 100% safe, but before the property can be registered in your name, an application must be made to the Council of Ministers for approval. This procedure will take approximately 6-12 months.

TRNC - Es-Deger Title
Kesin Tasarruf- absolute possession document-Title deed.
This is land or property originally owned by a Greek Cypriot prior to 1974,with title deeds issued by the Turkish Republic Northern Cyprus government on a points basis in compensation for land given up in the south. He would then sign over his properties in the south to the TRNC government, who in turn would hold them pending a negotiated settlement between both the north and south governments. The Turkish Cypriot would then be issued with new title deed for his recompensed property. He would only be able to sell his property/land once he had received his new title deed. TRNC - Es-Deger - title deed properties are safe to purchase. 

 TRNC - TMD Title Deeds
There are two different types of TMD Title deeds

Type 1: Points for National Service
These are points that are awarded to a soldier who does more than the two years compulsory National Service in the TRNC. These points can be exchanged for land, the title of this land is called TMD.

This type of TMD land according to the latest information from the local solicitors is deemed to be safe providing the land has been improved. Improvement of the land can either mean that the land has been built on or started building or percolated into individual building plots.

The one question that might arise in the future is that, if there was ever a full settlement in Cyprus then compensation may be due to be paid. This will be at pre 1974 prices plus inflation / interest. Under the Kofi Annan plan the new owner would be liable for up to 50% of the compensation due, the remainder being met by the TRNC government.

Type 2: Farming Land
The second TMD Title deed is land which has been given by the TRNC government to main land Turkish people who have settled in North Cyprus on the understanding that the land has to be farmed for a period of ten years.

This type of TMD land may have restrictions placed upon it in the future by the TRNC government . The long term position of this land is still unclear at this present time but we believe that this land can still be purchased as long as its been improved upon in the same ways as type 1 of TMD land.

In our opinion TMD Title deeds is deemed to be a safe title deed as long as the land has been improved.

Our advice for any potential purchaser of TMD land would be to seek advice from a local solicitor of their choice in case of any changes in the law. 

Leasehold
Owned by the government. These properties are usually derelict houses, which the government will lease out for periods up to 49 years to foreigners who renovate the properties at their own expense, who then pay a nominal ground rent for the leased period. This is safe to purchase. Purchasing A Freehold Property Process:- 

When decided on a property, agree a price.
Arrange a meeting with your appointed solicitor who will draw up contracts stating the terms of the sale ie: price, timescale, vendors & purchasers details, stage payments etc. 
When both parties happy with contract vendor & purchaser sign. 
Purchaser pays 10% deposit 
Purchase permit is applied for by your solicitor to the council of ministers which takes approximately 6 - 12 months
Once purchase permit has been received the remaining balance is due from purchaser. 
When vendor receives the final payment the Title deeds will be signed into the purchaser name and the sale is officially completed. 
If purchasing a leasehold property the whole process is much the same as purchasing a freehold. 
The exception being you apply either directly or via your solicitor to the Minister of Tourism who will grant the lease rather then applying to the Minister of Interior for a freehold property. 
Purchasing A Leasehold Property Process:- 

When decided on a property, agree a price.
Meeting with your appointed solicitor for drawing up of the contracts in which both vendor & purchaser must sign.
Application to Minister of Tourism applied for. 
Deposit of 10 - 20% is held for the vendor. 
Once application has been granted the sale can continue to completion with the balance remaining being paid and the lease being transferred into the purchaser's name. 
Land
Land in Northern Cyprus is measured in donums. 3 donums equals 1 acre, 1 donum equals 1338sq meters.
Foreigners are limited to 1 donum land per person or 1 house in max 1 donum land (husband and wife count as one unless they have different surnames).

Extra Costs:-
In line with the rest of the world there are some additional costs involved when purchasing a property in North Cyprus. 

They are as follows: 

Solicitor - £500 - This is a one off fee for the conveyance work.
District Land Office (DLO) - 6% of the estimated value of the home, this is usually lower than the sale price and is based upon the cost to replace the building. 
KDV (vat) - 15% This is a one off cost which the majority of the builders in Northern Cyprus include this in the purchase price but this must be stated in the contract. 
Council Tax - 1% - This is a one off cost at time of purchase, with no further payments of council tax in the future. 
Mains connections - Electricity £500 & Water £200 - Approximately 
Freehold

When purchasing a property in Northern Cyprus there are certain regulations and restrictions that must be adhered to, to enable you to take the title deed (known locally as a Koçan - pronounced Ko-ch-an) to be transferred into your name. These include checks carried out by the Ministry of Interior and like much of the North Cyprus bureaucracy this inevitably means delays! The transfer of title may take 9-18 months to fully complete, this however will not affect you being able to take possession of your property.

The procedure for buying freehold is as follows

Select property and agree price.
Contract to be drawn up by a solicitor based in Northern Cyprus, to include price, timescale, payment terms and specification.
Both vendor and purchaser to sign.
Purchaser provides deposit (the amount will vary from one property to another)
Solicitor applies to Council of Ministers on your behalf for purchase permit (this is your permission to buy in Northern Cyprus)
Final balance payable ( new build properties will be in stage payments spread over the duration of the construction. In most cases a 5% K.D.V. (V.A.T.) will be levied on the property. )
Once purchase permit has been received vendor transfers title into purchasers name.
Purchaser pays 6% stamp duty and 1% of the stamp duty charge is paid to the local Authority/Belediye. (You may use the right to be exempt from 3% of the duty on one purchase)
Sale complete.
 Leasehold

There are a number of leasehold properties in and around the Girne area in Northern Cyprus and the process is very similar to purchasing a freehold, however an application is made to the Ministry of Tourism and not the Ministry of Interior.

The procedure for buying a leasehold is as follows

Select property and agree price.
Contract to be drawn up by solicitor based in Northern Cyprus, agreeing terms and conditions.
Both vendor and purchaser sign
Vendor applies to Tourism Office to transfer lease.
Purchaser applies to take over lease.
Once purchaser application is approved, 10% deposit transferred.
On completion, remaining balance paid to vendor and lease transferred.
Sale completed
Please note, legal fees will be charged at a standard rate of £1000 for Freehold and £300 for leasehold. Stamp duty for leasehold will also be a set registration fee of £500. For more information go to Law/Solicitors.

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.

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.

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.