Select your North Cyprus property to be purchased, agree verbally on the price and on the payment terms with the seller. The purchase terms and price may need to be negotiated with the seller, and working in consultation with you, Royal Estates will proceed on your behalf until the price is agreed.
2) The Reservation Deposit
Once a verbal agreement has been reached between the parties, the buyer pays a non-refundable holding deposit to Royal Estates, or to his/her solicitor to show his/her good will, in order for the property to be taken off the market. The reservation deposit is a minimum of £500 Stg, and paid by cash, credit card or via bank transfer. A receipt is issued and the deposit is
included in the sales contract as part of the payment. The property is reserved for the buyer at the agreed fixed price for a limited time of 2-3 weeks until the buyer signs the sales contract and transfers the payment.
3) Search on the Property
Royal Estates or the buyer’s solicitor completes a full ‘search’ of the Title Deed of the property to ensure that the seller is the owner of the said Title Deed and that the property is free of any encumbrances, mortgages, charges, liens or debt. In the case of there being any problem or encumbrance of the property, then the initial holding deposit will be immediately refunded in full and any contract drawn up will be void.
4) Draw up Contract
The contract of sale will be drawn up, in English, by the buyer’s solicitor, or by certified public notary, which will reflect all the agreed terms & conditions of the sale, specifications of the property, payment plan, etc. The solicitor will then go through the contract with the client. Any corrections or changes can be made at this stage. When the client is happy with the contract, it is signed in the presence of a public notary or the solicitor by the buyer, the seller and two independent witnesses.
If the buyer has to leave Cyprus before the contract is ready, then the buyer can leave
Power of Attorney with a solicitor or a trustee so that the solicitor/trustee can sign on his/her behalf when buying properties in Northern Cyprus. In this case, the contract will be faxed, posted or e-mailed to the buyer by the solicitor, or by Royal Estates for the buyer to approve before signing.
The buyer will then have 10-14 days to make the first installment or full payment in the case of a completed or resale property. According to the new estate agency law, once the contract is signed, the buyer needs, within 21 days, to pay the stamp duty at 0.5% of the agreed price and register the contract at the Land Registry.
The purpose of this new law is to protect the buyer’s ownership rights. Once the contract is registered at the Land Registry, the seller can not sell this property to anyone else or put it under mortgage. By this new law, your property will be safe until you get your Title Deeds.
5) Purchase Permit
Non Turkish Cypriot buyers must apply to the Council of Ministers to obtain permission to have the Title Deeds transferred to their name. The buyer’s application for ‘Permission to Purchase’ (PTP) can be prepared and submitted by Royal Estates at a cost of £500 Stg. Alternatively, this can be prepared by a solicitor; costs vary between £1000 Stg and £1500 Stg.
For this PTP application we need a photocopy of the buyer’s passport and statement of the buyer’s criminal record (character report) which can be obtained from the buyer’s local police station (original copies must be submitted).
The Northern Cyprus Government is currently taking approximately 2 years to process PTP applications. The Government is, however, trying to speed up the process. The lack of a Title Deed does not prevent the buyer from selling the property.
Applications for PTP are normally a formality, unless:
The buyer has criminal record
The property overlooks a military base. (We will advise on this matter)
Between the time that the buyer signs the contract of sale and he/she actually receives the Title Deed; the buyer owns the property ‘on contract’. When the seller signs the sales contract, the seller relinquishes any rights over the property and gives full ownership to the buyer. Property buyers are free to sell, rent or modify their property once the buyers take possession of the property.
6) Transfer of Title Deed
When the permission is granted by the Council of Ministers, both the seller and the buyer pay the relevant property transfer taxes and the seller transfers the Title Deed onto buyer’s name at the Land Registry.
The seller pays the Capital Gains tax currently at 6.25% and the buyer pays Stamp Duty currently of 0.5%, VAT currently at 5% and Title Transfer Tax currently at 3%. Non TRNC citizens are only allowed to buy one property in their name.
THIS COMPLETES THE SALE PROCESS
Summary for buying a freehold property:
• Property is chosen and payment terms agreed,
• Reservation deposit is paid and ‘Property search’ is done,
• Contracts are signed by buyer and seller and the buyer
makes the payment according to agreed payment terms,
• ‘Permission to Purchase’ application is submitted to the Interior
Ministry,
• Once the purchase permit has been issued, the seller will then
transfer the Title Deed onto the name of the buyer. Sale complete!
Propertıes in North Cyprus offer the best value for money in the whole Mediterranean region. Both capital and rental income returns are something that you will find fascinating in this fabulous island. Please check ourBuyer’s Guide section for detaıled property buying procedure in North Cyprus..[see buying procedure]
