The Buying Process in North Cyprus

Summary: What to expect from the purchase process when buying property in North Cyprus

What to expect from the purchase process when buying property in North Cyprus

When it comes to purchasing your property the process in North Cyprus will depend a little on the type of deed your property holds.

If you are buying a freehold property the buying process in North Cyprus usually follows this path: -

You find your dream property and agree a price with the vendor - possibly through a third party estate agent.

A contract is drawn up by a solicitor which sets out the exact terms of sale.  These will include the price, the timescale until completion where applicable, the vendor’s details, the purchaser’s details, and any special conditions.

All the relevant paperwork is then signed by the vendor and the purchaser and witnessed.

At this point the purchaser usually provides a deposit of around 10% of the final purchase price.

The appointed solicitor will apply for a ‘Purchase Permit’ from the Council of Ministers.  This can take 4 or 5 months - though if they have a back log it can take a lot longer!  Many people worry that this means they can’t move into their property before the permit comes through.  This is not the case.  Furthermore, a permit will always be issued if you are buying a property which is legally allowed to be sold to you, you’re not a major criminal wanted for crimes against Turkey or North Cyprus and your property won’t put you in a physical position from where you can spy on the army!

Once the purchase permit is received the remaining balance will be due from the purchaser - often the remaining balance minus 5 - 10% will be due before this period if the property is completed before the permit is granted.  The 5 - 10% will be held back for the purchaser’s own security.

Make sure you are comfortable with when your payments are due and that the dates are written into your contract.

The purchaser pays the outstanding balance and the vendor signs the title deeds over to the purchaser.

The sale is completed.

If you are buying from a non-Cypriot - e.g., a British or German vendor - the buying process in North Cyprus usually follows this path: -

As the main checks relating to the property have already been carried out once by the ministry to allow the property to pass into ‘foreign’ ownership, the entire buying process will not only be far simpler but you’ll find it should be executed far more swiftly too.

You find your dream property and a agree price with the vendor - possibly through a third party estate agent.

The appointed solicitor prepares the contract as detailed before and sets the timescale for completion.

The vendor and purchaser sign the contract and the signatures are witnessed.

The purchaser pays the full sale amount - unless a delayed completion is agreed upon for some reason - in which case the purchaser pays a deposit in the region of 10% of the sale price and the remaining balance is paid on completion.

On completion the title deed is transferred into the purchaser’s name.

The sale is completed.

If you are purchasing a leasehold property the buying process in North Cyprus is as follows: -

The procedure for this type of property is actually very similar to the process to purchase a freehold property but instead of an application for permission to purchase being forwarded to the Council of Ministers you’ll apply via a solicitor (or directly if you prefer) to the Ministry of Tourism.

So, as before - you find your dream property and agree a price with the vendor.

Contracts are drawn up by a solicitor in which price and terms are detailed.

The contracts are signed by the vendor and purchaser and witnessed.

Application is made to the Ministry of Tourism by the vendor for a transfer of the lease.

The purchaser states intention and desire to take over the lease - at this point the purchaser may be required to attend a personal interview to discuss their plans for the property.

At the time of the application a 10% deposit will be required.  This will be held on behalf of the vendor.

If the application is accepted the 10% deposit is forwarded to the vendor and the sale can go ahead to completion.

Upon completion the remaining balance is due and the lease will be transferred into the name of the buyer for the agreed duration of the lease.

Here’s a general guide to the extra costs you might incur when purchasing property in North Cyprus and during the buying process in North Cyprus, fees depend on the type of property you are buying, ask your estate agent to clearly define and detail what you will be liable for: -

A purchase permit application will set you back about 1000 pounds.

Or if you need a contract of transfer e.g. is purchasing a foreign title, this will set you back about 600 pounds.

Stamp Duty is 6% of the valuation levied by Land Registry...not necessarily 6% of the price you pay for the property - in fact it is usually 6% of a much smaller amount.

Professional new developments also have 5% VAT to be paid at the Land Registry Office.

Application for building permission is 2.5% of the value of the building project.

Legal fees - the legal system in TRNC is based on British law.

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