Features of buying property in Northern Cyprus
In Northern Cyprus, a unique, but completely stable, political situation has developed. A small part of the land in the state remained in the possession of the Greek Cypriots previously living in the north. Theoretically, they can claim their rights to them, so the purchase of unverified objects in the secondary market is complicated by risks. Another situation in the primary market. In Northern Cyprus, over the past decade, annual growth in sales of new buildings by an average of 10% has been recorded. This is due to the fact that developers use sites that do not have disputed status. A reliable developer has a full package of legal documents on land.
Choosing an object and a developer
Buying a property in Northern Cyprus begins with setting priorities. Depending on financial capabilities and personal preferences, the range of significant parameters is limited. House or apartment? Location, secondary or primary? Of great importance are the acquisition goals: for personal residence or for subsequent rental. Coastal areas are intensively built up in the country – the choice is diverse. Definitely not worth buying housing built in close proximity to military facilities. Real estate in the area around them limited to 500 m is not registered.
If it is finally decided to purchase an already owned villa / apartment in Northern Cyprus, it is recommended to carefully check the ownership of the land and the status of the property for encumbrances, restrictions, disputes. To do this, hire an independent lawyer. The key to the absence of complications when buying a new building is a proven developer. His choice must be approached with special attention. In favor of the construction company says the volumetric portfolio of completed facilities, the presence of numerous reviews from real customers. It is worthwhile to familiarize yourself with the information on the developer and information on the titles for the housing being built by yourself by visiting the developer’s office on the island or a representative office in Russia. The best solution would be to inspect the houses already handed over to them, to talk with their residents.
Conducting a purchase and sale transaction
The design of a transaction for the sale of real estate in Northern Cyprus for foreigners has its own characteristics, which should be carefully read to avoid possible problems in the future. The main stages of registration of the most common option for buying a new building with installment payment:
Coordination of the terms of the transaction.
Drafting, with the participation of a lawyer, of a sales contract indicating the cost and terms of fulfillment of obligations. The document is executed in English and Turkish, if necessary – in Russian.
Deposit payment for reserving an object – £ 1000.
Signing a contract.
Payment of consulting services and stamp duty in the amount of 0.5% of the contract value.
Within 21 days after signing, the contract is registered with the Land Department – property rights are transferred to the buyer.
Payment of VAT from the transaction – 5% of the contract value.
Obtaining permission to purchase in the Ministry of Internal Affairs and legal title to real estate. The process of transferring the title takes up to 7 months, the cost is 6% of the stated in the contract. A one-time discount of 3% is provided.
Payment for the behavior of utilities – up to £ 2500.
When a realtor specializing in the local real estate market is included in the process, the possible risks of acquiring a villa or apartment in Northern Cyprus are significantly reduced. If problems arise, there is legal protection for sales transactions. The country has a State Commission on Real Estate. The body can be contacted to resolve disputes by providing a title to the property.