4 Common Misconceptions about North Cyprus Property

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“Is it safe to buy North Cyprus property?” is a common query.  In our NCI Marketing Department each week, one of our main roles is speaking to, emailing and live chatting with enquirers all over the world about their North Cyprus property interests and concerns.  This article touches on 4 common misconceptions about North Cyprus property which we regularly encounter.  

During our chats, we often find that many would-be North Cyprus property owners are concerned about whether it is safe to purchase property in North Cyprus – usually because they are suffering from common misconceptions about property ownership in North Cyprus.  

They are also unaware of the huge legal changes which have taken place in the North Cyprus property market over the last few years – now making the TRNC a very safe place to purchase.

Another reason for this confusion is that the property markets in other countries such as the Middle East, Scandinavia, UK and mainland Europe often operate in quite different ways from that in North Cyprus and have had a completely different history. 

We enjoy answering property queries from our clients and putting their mind at rest about legal, practical and other concerns as well as these common misconceptions about the safety of the North Cyprus property market.   If necessary, we also recommend that those with concerns can speak to or email a qualified North Cyprus Lawyer for reassurance.

If you wish to chat about your own concerns with one of our experts at any time, you are welcome to contact us via Live Chat, WhatsApp or email.  You can also call us on +44 207 112 8086 or +90 548 861 0600.

Here is a list of the top 4 Common Misconceptions about buying a property in North Cyprus.  None of these is true!

4 MISCONCEPTIONS ABOUT BUYING PROPERTY IN NORTH CYPRUS:

1. North Cyprus Title Deeds are unsafe or difficult to obtain.

2. Villas in North Cyprus always cost more than apartments.

3. All North Cyprus properties qualify for overseas buyer bank mortgages.

4. Non-Cypriot Lawyers outside North Cyprus can be used to purchase North Cyprus properties.

Misconception 1 – North Cyprus Title Deeds are unsafe or difficult to obtain.

Truth: There are extremely safe title deeds available in North Cyprus. The TRNC government underwrites ALL title deeds issued in North Cyprus. There are regulations in place to make North Cyprus property purchase very safe.  

Due to the complex history of the founding of Northern Cyprus, it is quite understandable that many ex-pat buyers may have misconceptions about the safety of North Cyprus Title Deeds.  The good news is that as the years have passed, various new regulations have been passed which have made a sensible new property purchase in North Cyprus safe and worry-free – with no more risks with a North Cyprus property than in any other overseas property destination.  As with all overseas property destinations, it’s important that the buyer’s lawyer checks that the paperwork for the purchase is in order. 

This section explains the how and why of why 10’s of thousands of overseas property buyers now consider a North Cyprus property purchase to be very safe.

Concerned you will not receive a North Cyprus Title Deed?

There are different reasons why would-be North Cyprus property buyers have title deed concerns.

You may be concerned that you would buy your property and never receive your North Cyprus Title deed.  This could arise if either:

• you did not receive permission to purchase (P2P)
• OR if the deed was being withheld by the developer.

What is Permission to Purchase?

Permission to purchase (also known as “P2P”) has to be applied for by your lawyer once you have decided which property you wish to purchase.  It cannot be granted in general for any property purchase or before you know what you wish to buy.

P2P is generally a formality and would only be withheld if the individual concerned fails a police check in the country where their passport is issued or if the property being purchased by an overseas buyer is close to a military base.

The cases where title deeds are not issued by the developer are extremely unfortunate, but there are now new safeguards in place in North Cyprus to prevent this occurring summed up in the “Estate Agents Bill” which now protects the buyer and insists upon the rapid registration of the contract of sale with the land registry of North Cyprus soon after signing.

It is not necessary to wait for P2P before taking possession (as possession can be done with the contract and payment) but it is necessary to wait until permission is granted prior to taking the title deed.  It is rarely withheld and in extremely rare cases, the deed could be held in Trust instead.

Safeguards ensuring transfer of title deeds:

* If you are an individual who can pass a police check in your country of origin (and thus obtain Permission to Purchase),

* If you are buying a new home from a reputable developer with a track record of delivering deeds or a resale property with an existing deed,

* If the property legalities have been checked by a reputable lawyer, and you are buying via an independent estate agency such as NCI – 

Then you will receive a title deed once the developer or private seller is in a position to transfer it. 

Please note, you are only allowed one title deed in each individual’s name.  A wife and a husband can receive a deed each, particularly if they have different surnames.  There are Trusts (Public Limited Holding Companies) through which buyers can hold more than one property.

Why do these misconceptions arise? – In terms of obtaining Permission to Purchase (or P2P) there was a period of time several years ago where for political reasons, P2P was being withheld from buyers who wanted to purchase a property which was built on Pre-74 Turkish Title land.   This last issue no longer applies.

Always conduct your property purchase via a registered lawyer.   We at NCI recommend you consult a North Cyprus Lawyer who will check all the legalities for you before you make an offer on a property, or before reservation deposit monies are released to the seller,  to check the deed exists and is sound. 

Our company, North Cyprus International only lists new properties built by companies with a 100% track record on delivering title deeds promptly to the new buyer once they receive them.   

Concerns about deed safety, reunification of Cyprus and land claims

Do you have concerns that you would receive a title deed but then for some reason lose your North Cyprus Property by virtue of reunification of Cyprus or some other claim on the land on which your property is built?

Perhaps you do not have a worry that you would get a deed.  You just don’t trust the North Cyprus Title Deed.  This may be for political reasons due to the history of the division of the island between South and North Cyprus and you are concerned that a pre-existing deed may appear to supplant your new North Cyprus deed.  Or it may be for another reason.

The truth is that new properties built on Pre-74 and Exchange Title Deed Land in North Cyprus are very safe to purchase.

There are two types of land deed in North Cyprus on which most new properties are built and which are considered very safe to purchase.  Pre-74 Turkish or British Deed properties are built on land which was always part of Northern Cyprus and upon which there can be no claim or property loss.  The other type of land deed, most used by developers today and considered by North Cyprus lawyers to be very safe is called “Esdeger” or “Exchange” land.  The latter refers to the land where the deed on the land of an equivalent value lost in the south side of Cyprus after the division has been given up in exchange.  

You may like to read our article here on “North Cyprus Title Deed Types”. 

The name “TRNC Title Deed” is given to the NEW deeds issued upon new properties which have been built since 1974 when the island was divided and which did not even exist prior to the island’s division and so cannot be claimed by someone else.  These deeds are underwritten by the North Cyprus government.

In the possible event of Cyprus reunification (at which point your new North Cyprus property is likely to rise considerably in value) there will be compensation due to former Greek Cypriot landowners for their lost land – as well as to Turkish Cypriot owners who lost up to 20% of the land in the south.  However, there has never been any talk of this compensation being paid by the owners of new properties, only by the international community in terms of a Property Commission.  

The 2004 Oram’s Case – politically motivated and a “one off”.

The high profile “Oram’s case” – involved a British couple losing their home in North Cyprus as the result of a very high profile, Greek Cypriot government-funded, court case.  This only succeeded as the home had been built in the grounds of an existing older home – not a normal situation.    After the Oram’s case, the European Courts of Justice did not wish a repeat and hence ruled that all future Greek Cypriot claims on land must go through the Immovable Property Commission in North Nicosia.  This commission, funded by Türkiye, pays compensation to Greek Cypriots for lost land and does not grant “restitution” except in cases where the property is extremely valuable (like a central Kyrenia hotel) or has not been changed at all.  Modern properties are never given back as the former Greek Cypriot landowner (if any) will be eligible for compensation.  Therefore, it’s safe to buy modern properties built after 1974.

Unfortunately, in terms of safety misconceptions, the mainstream media has tended to give maximum publicity to the loss of land in the North of Cyprus, whereas Turkish Cypriots (who lost up to 20% of valuable land in South of Cyprus including Larnaca Airport’s land) do not enjoy the same publicity.  To our knowledge, the Oram’s case is unique and was conducted primarily to put people off buying in North Cyprus.  

Immovable Property Commission in North Nicosia

This is a fully functioning Property Commission in North Nicosia, recognised by the European Courts of Justice as “an effective local remedy” to compensate Greek Cypriots for any lost land in North Cyprus.  There are occasionally “restitutions” of older, unmodernised village homes built prior to 1974, or very valuable older properties.  Greek Cypriots wishing to sell land can approach the Immovable Property Commission directly or via a North Cyprus lawyer.

Misconception 2 – Villas in North Cyprus always cost more than apartments.

Truth: In the North Cyprus International (NCI) range, pre-owned 2-bedroom townhouses or smaller bungalows can cost considerably less than some of the more luxurious beachfront apartments with all year facilities.   North Cyprus International uses Property Matching to find you exactly what’s right for you.

In the past it was generally the case that North Cyprus apartments were a lot more affordable than a villa.  However, this is now a misconception.    Although the top end of the villa range does indeed cost more than the top end of the apartment range, at the lower price range end of the market, the price lines are blurred.  

With some townhouse and semi-detached villa prices quite affordable, you should enquire for what you really want rather than what you think you can afford.  At NCI we specialise in personal property matching – do complete our easy questionnaire to be sent hand-picked properties to meet your needs.  

Misconception 3 – All North Cyprus properties qualify for overseas buyer bank mortgages.

Truth – Most overseas buyers are cash buyers.  There are a few North Cyprus banks which will lend 50% of the property value as a bank mortgage loan to overseas buyers from 5-10 years. There are also a few independent loan companies which will do the same up to 5 years.  Turkish Cypriots with a Kimlik card who are resident in the TRNC should find it easier to get a bank mortgage of at least 50% on an individual deed property.

Many would-be North Cyprus property owners are surprised to hear that, unlike countries like Spain and Italy, not all North Cyprus properties are automatically eligible for bank mortgages for overseas buyers.  When it comes to key ready property purchases, “cash is king” in North Cyprus.

However, overseas buyers it is important to bear in mind the following:

• Firstly, the loans only on selected properties (“individual deed” properties only – you cannot get a loan on a “shared deed” property” or a new build with no deed issued).
• Secondly interest rates are far higher than in Europe – sometimes up to 12% (check with your bank)
• Thirdly – in the 2022-3 North Cyprus Property Boom, the sellers of the key ready resale properties will always prefer to sell to a cash buyer, as the bank loans can take several months to come through.

 Evidence of your income and savings will be required for a loan application.  Even TRNC passport holders may need a local guarantor.

Brand new properties which are awaiting their deeds, or older properties which have an interim shared deed, are not bank mortgageable, even though they are still very good investments. However, North Cyprus International will help buyers purchase new properties where available, with a “developer loan” (see below).

The historical lack of easily available bank mortgages for overseas buyers in North Cyprus is one factor which has kept prices more affordable than some other comparable Mediterranean property destinations.

Alternatives to Bank Mortgages in North Cyprus – Developer Loans

So – how does a foreign buyer or investor purchase a property if they do not have all the funds available? There are two main options: many will remortgage their home in their home country to release capital and use that to purchase in North Cyprus. Interest rates tend to be lower in many other countries, so this can be a good option.

The second option is to take advantage of one of the non-status “low deposit developer loans” or “developer installment/payment plans”, which companies such as North Cyprus International (NCI) have increasingly persuaded developers to provide for their clients on new build properties. It’s important to note that these are almost exclusively available on off plan or under construction properties, as such property sites tend to sell out before completion. It’s also important to bear in mind that a new build property can be double the cost of an older, key ready resale property of the same size – although the quality of build of the new-build properties, as well as the standard of the facilities provided, will be far higher.

To get a North Cyprus developer loan you won’t have to provide evidence of income but you will need a cash deposit of at least 25% of the sale price of the property – sometimes up to 50% if the property is already under construction.

With a developer installment plan, the buyer borrows from the company who builds the property. If the repayments are only over the “build period”, they are usually at 0% interest. If the payments are extended beyond the key delivery, then there may well be interest to pay. Each developer has a different interest rate, minimum deposit percentage and time period for full payment.

The North Cyprus International Long-Term Payment/Mortgage Range has deposits from 25% with payments from 3-10 years. The monthly payments are likely to be quite a bit higher than a standard European mortgage, as the loan period is much shorter.

For an up to date News Article about North Cyprus Mortgages – please click. Contact our NCI office for full details.

Misconception 4 – I don’t need a lawyer in North Cyprus – I can just use my own lawyer at home to handle North Cyprus property purchase.

Truth: To buy a North Cyprus property safely, it is extremely important during your stay that you visit a properly qualified North Cyprus Lawyer as you cannot purchase using a lawyer based outside the TRNC.

North Cyprus was previously a British colony and has a very “ex-colonial, British flavour”.  Cars drive on the left, the plugs are the same, English is widely spoken and pounds are accepted in the shops.  Hence it can be assumed by some people that the legal system is the same and British or UK-based lawyers can be used for the property transaction, but this is a misconception. North Cyprus has its own system of law and government.  

Click to view North Cyprus Recommended Lawyers

When you visit North Cyprus, we recommend you have a first free meeting with a recommend lawyer and set up a power of attorney (POA).  POA is free to set up and this means that if you do decide to purchase after you have returned home, you are able to do so.  You will need a North Cyprus trained lawyer to act on your behalf for important functions such as: registering your contract of sale at the land registry, liaising with the property owner to ensure the property is safe to purchase and to draw up the contract, to sign the contract on your behalf and other matters.  Many North Cyprus Lawyers are British trained too.

We at NCI would advise all our North Cyprus property buyers to avoid rumours and old information on the internet, and instead, seek reputable legal opinion on the purchase of your new North Cyprus home. 

Contact North Cyprus International

We are available round the clock in the UK and Cyprus on live chat, email, skype (nciLondon) or the ‘phone to answer your queries and clear up any misconceptions about the safety of a North Cyprus property purchase.  We look forward to helping you purchase a home – one you can enjoy and relax in, worry-free, for many years to come.