North Cyprus Property Purchase Procedure

CarrieRBag



Joined: 23/12/2008
Posts: 1374

Message Posted:
16/12/2009 12:09

Hi, I have a North Cyprus Properties copy of the above dated 02/10/2007 and just wondered if anyone has a more up to date copy if there is one, perhaps from another site or one they have written themselves? Grateful for any help/advice. Thanks

malsancak


Joined: 23/08/2009
Posts: 2874

Message Posted:
16/12/2009 12:44

It's very simple for non-citizens, you pay for the property in full and then wait several years to become the legal owner and during that time hope that the person you bought it from doesn't put a mortgage on it and then goes bankrupt and the bank auctions it. Apparently you can do something legal to stop this but you have to learn about this yourself because the advocates here are only conveyancers and therefore, outside of paper-pushing, they only do what you tell them to. To find out these laws you get in touch with the law society and you wait and wait and wait but meanwhile you will be given lots of conflicting advice by non-lawyers.

StGeorgeI


Joined: 27/08/2009
Posts: 973

Message Posted:
16/12/2009 13:35

Malsancak... You are a bit out of touch -



A new law was passed in Jan 2008 stating that all contracts must be stamped at the tax office (0.5% fee) and then registered at the land registry within 21 days of the contract date. ALL lawyers now do this as standard practice within their fees.



At the time of registration the land registry will tell you if there are any encumbrances on the land. Once the contract is registered the land cannot then be mortgaged, double sold, etc.



Also, the Government are pushing purchase permit applications through the system much quicker with some people receiving them in just over 12 months.



Still not perfect but it is improving!!



G

TheSaints



Joined: 28/01/2009
Posts: 1369

Message Posted:
16/12/2009 13:48

1. Secure your chosen property and agree the price, the validity of the title deed is then checked by your advocate.



2. If you are not going to be present in Northern Cyprus during the build of your new property, then a power of attorney will be draw up with your advocate who will then act on your behalf.



3. A contract is then drawn up by your advocate, setting out the terms of sale. I.e. price, payment terms, timescale, vendor, purchaser and any extra requirements. In many cases, the purchaser returns home, the contract is then emailed for you to check and only once you have approved it your advocate will proceed with the purchase in your absence.



4. The vendor and yourself as the purchaser will then sign the contract.



5. The purchaser then pays the agreed deposit to the vendor as set out in the contract.



6. Your solicitor then applies for your Purchase Permit from the Council of Ministers, this is currently taking from 18 months to several years to complete.

malsancak


Joined: 23/08/2009
Posts: 2874

Message Posted:
16/12/2009 13:49

read the last bit, "advocates here are only conveyancers and therefore, outside of paper-pushing, they only do what you tell them to..." I think you missed the BARO meeting which said as much, and Ismet's comment that we expect too much of conveyancers as they are not solicitors. I believe that it is hit-or-miss if your chosen conveyancer does this plus they apparently do not have a duty of care here if they don't. Unless you are saying that all properties since Jan 2008 are protected against an encumbrance being placed on the title. It would be interesting to see if other post-2008 property buying board members can confirm whether their contracts have definitely been registered.

TheSaints



Joined: 28/01/2009
Posts: 1369

Message Posted:
16/12/2009 13:51

7. Your agent or your deligated POC will act as the main point of contact between you and the seller/builder.



8. Upon completion of your property you will make your last payment to the Seller/builder.



9. As soon as your purchase permit is received you will then pay the retention payment to your seller/builder.



10. The vendor will then transfer the title deeds into your name and this is when your taxes are payable. The sale is then complete.

TheSaints



Joined: 28/01/2009
Posts: 1369

Message Posted:
16/12/2009 13:54

Fees and Taxes



Advocates fees approx 1250 to 1350stg



Taxes 5% Vat and 3% land registry fees normally payable on transfer of title only which for foreign purchasers can be up to 2 years sometimes longer, this does not inhibit you occupying or taking possession of the property (you are protected up to this point by registering and paying stamp duty, this process registers your name on the land like a charge until full title is transferred.)



Stamp Duty payable within 21 days of signing contract 0.5%



Transformer contribution not always applicable depends on site can vary. Can be between 800stg up to 3000stg, this is payable before completion and normally nearing too.



Meter Connections depends on area normally 800ytl for foreign purchasers for electric this includes a bond and can change.

Hector


Joined: 26/08/2008
Posts: 2352

Message Posted:
16/12/2009 23:36

Oh and don't expect to actually get Permission to Purchase if the property has Turkish title, oh and despite doing everything legally and you are actually fortunate enough to be able to move into the property, wait & see if a former GC owner turns up and demands their property back or for your home to be demolished.

CarrieRBag



Joined: 23/12/2008
Posts: 1374

Message Posted:
17/12/2009 09:15

Thanks everyone