The procedure of buying home in North Cyprus is quite straightforward and not significantly different from acquiring a home in more established Mediterranean destinations. However, there are always few points to remember: Having decided on which type of property you would like to buy and reached agreement on the price, you will need to appoint a solicitor in to act on your behalf. This is called granting 'Power of Attorney', and enables legal matters such as confirmation of deeds and application to the Council of Ministers for the purchase permit to be handled on your property purchase whilst you are out of the country.
Here are the steps of purchasing Freehold property in Northern Cyprus:
-The Purchaser selects the property and agrees on its price.
-The purchaser's solicitor draws a contract, to include price, payment terms and specifications. The contract of sale will also stipulate when future payments for your property must be made and will also establish a completion date. When buying a new build property the developer will normally require staged payments through construction with the balance due upon completion.
-The Lawyer checks the title deed to ensure it is clean of mortgages, debts and claims.
-The Purchaser pays the solicitor's fee. This is around £1,000.
-Both vendor and purchaser (or lawyers if he has been given power of attorney) sign the contract.
-The Purchaser pays the first installment or the property to the vendor (usually 10-20%, as it will be negotiated and stated in the contract) and 0, 5% stamp duty (0.5% of the purchase price).
-The Solicitor applies to the Council of Ministers on the purchaser's behalf for the purchase permit.
-The Purchaser pays outstanding balance for the property to a vendor as stated in the contract (installments according to construction stages).
-Purchase permit has been received.
-Final balance payable.
-The Vendor transfers title into the purchaser's name.
The Purchase permit will be obtained within 4-12 months. In order to transfer the ownership, the application to the District Land's Office should be made together with submission of property registration certificate, copy purchase permission and the evidence of property taxes payment.
Foreigners are allowed to buy only one donum of land (=1,338 m2), house, apartment or building plot (husband and wife count as one person unless they have different surnames). Cypriots or persons of Cypriot origin are given permission to buy property without any restrictions.