Procedures.
Whether buying property in North Cyprus either through an agent or privately, it is most important that you obtain the services of a professional and independent solicitor. He/she will check that the title deed is valid and will visit the land registry in person . If your property purchase forms part of a development, this will be divided to provide title deeds for each plot upon completion.
Contracts will be drawn up and will be notarised. At this point a 10% deposit becomes payable and the date for completion of the transaction is set. It is usually possible to leave power of attorney with your solicitor who can be left to complete the purchase for you. This is particularly useful for those not currently resident in North Cyprus as it allows you to return home during the purchasing period.
Your solicitor will now lodge the contract with the Land Registry and the signed contract is legally binding on both vendor and purchaser.
An application to purchase is now made by your solicitor, on your behalf, to the Council of Ministers. This procedure can be quite protracted depending upon circumstances but your solicitor is best placed to be able to expedite this as much as possible by making sure all is in order at first submission. This is another good reason for not attempting to go it alone.
The Land Registry is responsible for valuation of the property for purchase tax purposes. This is normally excluded from the purchase price and is payable upon transfer of the title. Should the vendor be a company, then VAT will be payable on transfer of the title. (See details in the taxes section).
The contract will specify details of further or final payment. In the case of off plan or new build developments this could include split payment or staged payments in line with building stages. This form of arrangement motivates the developer or builder to keep to agreed schedules and is an excellent control mechanism.
Where your purchase is part of a development as above, the breakdown of title into the individual plots will take place either at the start of the project or when the entire development is completed. These individual deeds will be transferred to you and you will be issued with the new title deed applicable to your plot by the Land Registry.
Buying Property in North Cyprus. A guide to procedures and taxes.
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