If you are thinking of buying a property in the TRNC please read this before you agree to anything. Although it may be very tempting when an Estate Agent or Developer offer you a free holiday, please remember that it could well turn out to be the holiday from hell. All they will want from you at the end of your (probably very stressful) holiday is your signature on a Property Sales Agreement. Please remember that Estate Agents are only interested in their commission. They don't worry about the type of property, whether the builder owns the land, if he has a building permit, if he is registered with the Construction Association, if the land is actually suitable for purchase by a foreigner, etc. They just want to sell you one of the vast number of properties they have on their books. See General Meeting Minutes, an ex-estate agent gives some tips. Please also read the Do's & Don'ts established from experiences of the HBPG members.
Baro (The Law Society of Northern Cyprus) suggest you do the following:
1.
Find
a property you wish to buy.
2.
Find
a Lawyer. It is most
important that you ask the Lawyer if he represents any of the
other parties involved in the sale.
If he does, it is advisable to find another.
We understand that a number of Estate Agents receive a
referral fee from the Lawyers.
3.
Baro have advised that you
should firstly give the Lawyer details of the property and ask
them to undertake preliminary investigations, including land
search and the financial stability of the developer.
This service will cost from nothing to a maximum of £50.
4.
With
this done, relax and wait for your Lawyer’s written report on
the results of his search. This
may take 3-4 months. If
the Sales Agent advises you that the property will either be
sold to someone else or will increase in price during that time,
please remember that it is better not to buy a property with
potential future problems than buy it now and regret it later
when all your money is gone.
5.
If
the search is satisfactory (make sure you obtain a certified copy) and you
still wish to purchase the property you should return to the
TRNC to sign the contracts in person.
Never give Power of Attorney to a stranger, even if he is
a lawyer.
6.
Baro
advises that, at this stage, you should enter into a formal
Agreement with the Lawyer, setting out precisely what he will do
on your behalf, together with details of his fees and payment
schedule.
7.
When
the terms of engagement with the Lawyer are agreed he should
then prepare the Sales Contract, ensuring that all your
requirements are fully documented and protected.
It is important that all aspects of the build
specification, together with the provision and connection of
services, are tightly covered. If necessary, you should engage
the services of an English/Turkish translator so that there is
no misunderstanding of promised undertakings at a later stage.
8.
Make
sure you get a copy of the Koçan (title deeds), the Certified Tapu Site Plan and the
Build Permit. Again,
use a translator to establish the authenticity of these
documents.
9. It is important to remember that the Sales Agent is acting for the developer and is being paid a fee, by the developer, in the region of 5% of the Sale Price. Also, the Sales Agent receives this fee when you sign the Sales Contract.
Remember the Government do not charge a fee for application or issuing of Permissions to Purchase/Build and all government departments and employees are very willing to help and advise whenever possible.