When we started the Homebuyers Pressure Group in September 2005 one of the organisations we visited was Baro (the Law Society of Northern Cyprus). They provided tips for us on the do’s and don’ts of entering into a Sales Agreement - see Purchase Procedure Guidelines, Since then we have learned a lot more do’s and don’ts.
DON’T
DON'T trust anyone or believe that they are acting in your best interests.
DON'T make a hasty decision – it’s a buyer’s market.
DON'T hand over any money until you are completely satisfied that your investment will be safe.
DON'T use an estate agent that is not certified to operate in the TRNC. The Cetificate should be displayed in their office. Take a note of the certificate numer and contact the Estate Agents Union on 00 90 392 227 3793 for validation.
DON'T engage a lawyer that is recommended by the estate agent or builder/developer
DON'T sign a Sales Agreement under pressure
DON'T give Power of Attorney to someone you have just met.
DON'T sign an agreement that states you are liable to pay the seller's Sales Tax, Withholding Tax, KDV(VAT), municipality tax.
DON'T sign an agreement unless all the relevant documents are signed by all parties and attached as Addendums
DON'T think that if a lawyer allows you to enter into a Sales Agreement for a property that this property is suitable for sale to a foreigner and that you will automatically be granted Permission to Purchase.
DON'T take the lawyer's word that he has applied for your Permission to Purchase. Insist that you receive your Permission application number approximately 2 weeks after completing the form.
DON'T employ anyone to carry out a survey on your property that is not registered with the Chamber of Architects & Engineers (00 90(0)392 227 1617 or 00 90 (0)392 228 0296). Only Turkish Cypriot citizens can be a member of the Chamber.
DON'T use a builder that is not registered with the Construction Association (00 90(0)392 228 8061). Only Turkish Cypriot citizens can be a member of the Association.
DON'T pay a lawyer in full in advance of services being carried out.
DON'T buy a property if the full infrastructure (road, electric, water, telephone) is not in place.
DO
DO your homework thoroughly
DO use an estate agents that is certified by the government. The Cetificate should be displayed in their office. Take a note of the certificate numer and contact the Estate Agents Union on 00 90 392 227 3793 for validation.
DO ignore most of what the estate agent or builder tells you
DO make sure you receive a copy of:
ü Koçan (Title Deed) for the land
ü A Tapu (Land Registry) certified site plan
ü Bina Ruhsatı (Building License) and the Sehir Planlama Dairesi (Central Planning Office) planning permission.
ü The Sales Agreement
ü A complete Technical Specification
ü Architect prepared plans for the property and the entire development. These must be stamped with the Chamber of Architects & Engineers VIZE.
DO make sure that the information on all these documents agree.
DO visit the City Planning Office (Şehir Planlama Dairesi), Lefkoşa with the Koçan and Certified Site Plan who will advise you on the status of the Building Permit and sub-division of the land.
DO visit the Tapu Office (Land Registry) in Girne with your documents and ask them to check that there are no charges, mortgages or other encumbrances on the land.
DO visit the Electricity Authority (Kib-tek) in Girne with the Koçan and Certified Site Plan and they will advise whether or not the builder has submitted an electrical project. If applicable, they will also give you the Project Number so that you can progress it in the future.
DO get the name, address, registered company number and Construction Association registration number of the builder/developer. Only use a builder that is registered with the Construction Association and contact the Association 0982 228 8061 for verification of his status. If a builder is not registered with the Construction Association it is illegal for him to build.
DO make sure that the builder is the titled owner of the land.
DO get a copy of the Sales Agreement and study every word carefully.
DO talk to as many people as possible who have purchased from the same estate agent, builder/developer
DO contact the Homebuyers Pressure Group or call into the Pia Bella any Tuesday from 12 to 3pm for advise.
DO apply for your Permission to Purchase yourself or ask the HBPG to do it for you (free service). if you want to use a lawyer, insist that you receive your Application number immediately so that you can progress it thereafter with the Interior Ministry
DO engage an independent translator if you are shown any documents in Turkish that you don’t understand.
DO employ the TRNC Government controlled Chamber of Engineers & Architects to oversee your project as they are the only body whose reports are counted if a Court case ensues. It should be noted that the builder has the right to refuse the involvement of the Chamber. If he does refuse, you should be asking yourself why? This body can be held accountable by the courts if they should not carry out their duties, unlike other private groups.
DO make sure that the Technical Specification covers every single aspect of the build and include it and the VIZE stamped house plans, plot plans, site plans, artists impressions as Addendums to the Sales Agreement.
DO make sure that you pay stamp duty at 0.5% of the contract price immeidately and,
DO ensure that either the vendor or estate agent registers the stamped contract at the District Land Office within 21 days of the contract being signed. The DLO will not accept late registration.