North Cyprus Property buying Process
The process of buying property in North Cyprus can be summarised as follows:
• Find a property that you wish to buy in North Cyprus and agree the sale
• Instruct a solicitor of your choice in Northern Cyprus
• Put a deposit on (usually £1000) to reserve your property in Northern Cyprus
• Sign a power of attorney
• Agree the exact details of the contract (usually by e-mail over the next few weeks),
• Sign the contract (your solicitor in North Cyprus can do this on your behalf if you given him/her a power of attorney)
• Register contract and make agreed payments to vendor
• Apply for permission to buy, one of the jobs of your solicitor
• Get deeds into you name once you permission to buy has been granted.
All transaction relate to property in North Cyprus take place using pounds sterling. For more information on Power of Attorney, Deposits, getting the contract stamped and registering the contract please click here
Power of Attorney
If you want to buy a property in North Cyprus you should sign a power of attorney using a solicitor that has been recommended to you and that you are happy with. The power of attorney will allow you to have your contract signed on your behalf by the solicitor or by whoever you have used as your power of attorney even if you are not in North Cyprus. The solicitors do not charge for producing a power of attorney (it takes about 15 minutes) although you signatures have to be authenticated by a notary and this costs about £20.
Once you decide on which North Cyprus property you would like to purchase, you will have to pay the reservation fee to secure the property and have it removed from the market. Developers and builders allow you to reserve any property for a fee of £1000 to £2000. The deposit, which is normally non refundable, can be left with the Estate Agent, solicitor or developer/builder. By reserving a property in North Cyprus you will secure it for a period of time, around one month, which allows enough time for the sales contract to be drawn up, agreed and signed. Before signing you should make sure that you have reached an agreement with the developer/builder on the price and the costs of any extras that you may need and that you understand and are happy with the terms of your contract.
In most cases when the purchaser has found a suitable property, the purchaser returns home, the contract is then e-mailed or faxed to the purchaser to review and only once the purchaser has approved it will the solicitor proceed with signing it, in the purchaser’s absence and on their behalf. The purchaser will also receive a final signed copy for their records upon their next visit to Northern Cyprus, or the contract can be sent by courier if requested.
Getting the contract stamped
All North Cyprus property contracts have to be stamped and stamp duty is payable at 0.5% of the contract value if paid within 1 month upon signing of the contract. If it is not paid within this time, it will increase to 1.5%. This is paid by the buyer. The contract has to be stamped before registration of a property contract in North Cyprus can take place.
Registration of Contract
According to a new property law in North Cyprus that came into operation in January 2008, all Sale Agreements must be registered at the District Land Registry Office in Northern Cyprus (known locally as the “Tapu”) and the Estate Agent involved in the sale of the property is responsible to do this within 21 days. This has been a major step forward in offering security to the purchaser of any property in North Cyprus. Once a contract has been registered then the seller of the property cannot sell it or mortgage it to anyone else without the written consent of the buyer.
“Advice from the Homebuyers Estate Agency, make the payment for your property subject to registration of contract not due on signing of contract.”