Land and Property Purchase
With regard to the purchase of land or buildings, we will first look at the different types of property, and the title deeds which one is likely to be offered.
a) Clean freehold title - British or other foreign ownership pre-1974, with title deed (kocan), clearly stating that this is the case. Internationally recognised deeds.
b) Clean freehold title - Turkish Cypriot owned pre-1974. These deeds are 100% safe, but before the property can be registered in your name, an application must be made to the Council of Ministers for approval. Foreigners are limited to one donum per person (husband and wife count as one person unless they have different surnames). The procedure to obtain approval will take about six months or so.
c) TRNC - kesin tasarruf - absolute possession document - title deed. This is property or land that was in Greek Cypriot ownership pre-1974. When the Turkish Cypriot refugees came to the safety of the north after July 1974, they left all their possessions behind in the south. Accordingly, the Government then assessed on a points basis, the value of the refugee's forsaken assets in the south. With these points, the Turkish Cypriot refugee could take a relinquished Greek Cypriot house or land in compensation for his lost properties. He would then sign over his properties in the south to the TRNC government, who would then hold them pending a negotiated settlement between the north and south Governments. The refugee would then be issued with a title deed for his newly recompensed property. Until he received this title, he would not be in a position to sell.
Our feeling is that as the island is heading, albeit slowly, for some sort of solution, whether it will be a negotiated settlement or annexation to the Motherland, then the TRNC title deed properties can be considered safe to purchase.
d) Land or property - Greek Cypriot pre '74 - no title deeds - yet unissued. Some people offer for sale, for relatively nominal sums, these properties without deeds. They are sold for "air money" or "goodwill" usually, these need the purchase of additional points before the title deeds will be issued. It is our opinion that agreements should not be entered into for property that does not have a title deed issued by the relevant authority.
Be absolutely sure that the land you are buying is in fact the land that you are being shown. Ask for a copy of the title deed and check the sheet/plan/plot references and the site plan of the site. Look at the site plan and ascertain from its boundaries its shape and sitting. The location of nearby roads and buildings, major differences in the topography of the ground,
Seek a suitable plot. Visit the area that you are interested in and ask the local residents directly, or in case of a village, the village muhtar, if there is land for sale. The direct approach (find out who the owner is of the plot you are interested in and ask him if he wants to sell) may prove to be the best one. Bear in mind that it is the seller who pays for the commission of the agents and not the purchaser and for this reason agents have the owner's interest at heart and not yours.
There is an increasing tendency by the local and the foreign market (in particular the British market) to acquire old village houses which are subsequently improved/converted into modern residences. Before the "craze" of village cottages started, there were some real bargains for this nature of property. Nowadays cottages of character and colour are relatively expensive and they may amount, together with the repair improvement bills, in excess of what a new villa of the same size would cost. The best approach in buying your cottage is to visit the village of your choice yourself and seek information from the village muhtar (the chairman of the village parish). Estate agents may prove helpful but use them as a second choice. It is evident that the less popular the village is by foreigners, the lower the cottage's price. Bargains can still be found at the remote villages. It is strongly suggested that before concluding a deal, you obtain a firm estimate of the repairs, In particular, you must check who your neighbours are, since in tightly knit communities, such as the local villages, they have their own way of living and attitudes towards life. Check whether your neighbours keep any animals in their yard since if they do the smell may be unbearable. Check also the distance from the town, the access, whether there is water, electricity a telephone service, the nearest doctor.
[email protected] email for more infomation.
