TITLE DEEDS IN NORTH CYPRUS (TRNC) EXPLAINED
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: FarmingLand
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 1388sq meters.
Foreigners are limited to 1 donum per person or 1 house (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 - £1200 - This is a one off fee for the conveyance work.
- DistrictLand 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) - 5% 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