Purchase Procedure Guidelines - supplied by Baro

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.

  1. When all the above are in place and you are 100% satisfied that your investment is secure you should then apply to the Interior Ministry for your Permission to Purchase.

Some Agents will pressurize you into buying immediately but, it is vital for your future security, that you follow these guidelines and the Do's and Don'ts set out by the HBPG.

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.