PURCHASE PROCEDURE

Things to consider and a step by step guide to purchasing property

As the legal system in North Cyprus is the same as that of the UK, the whole process of buying property in North Cyprus is fairly simple. All legal documents are in English, and there are a wide range of highly regarded solicitors in North Cyprus who are bilingual in English and Turkish. Once the purchaser has decided on the property they would like to go ahead with, then the property purchase can be completed in a very short period of time.

Hiring a solicitor at this point is essential. The solicitor will be responsible for informing you and providing you with all documents relating to taxes, applications, processes from the time of sale through to the transfer of the title deed of the property you purchase. Furthermore, the solicitor will also deal with processing your permissions to purchase as a foreigner by applying to the appropriate Governmental Offices and will follow up on your applications to ensure completion. The solicitors in North Cyprus can be communicated via e-mail, fax and phone. Thus, constant correspondence can be ensured throughout the purchase process of a property. Moreover, a property purchase may even be completed from abroad if the solicitor has been granted the Power of Attorney to act on your behalf.

01

Select and Reserve Your Property

A sales representative from our company will assist you in viewing available projects that meet your need. Once you decide on the property you would like to purchase, make sure to pay the reservation fee to secure the property and have it removed from the market. If you are out of North Cyprus and would like to reserve a property from abroad, it is necessary to complete a wire transfer of the funds, as foreign cheques take a few weeks to clear. If you are present in North Cyprus, it is possible to pay via credit card or cash. By reserving a property, you will secure it for a period, which allows enough time for the sales contract to be drawn up, agreed and signed. Before moving on to the next step you should make sure that you have reached an agreement on the price and any extras that you may need.

02

Price Negotiation and Purchase Terms

At this stage, price negotiation takes place. Furthermore considering the needs and capabilities of the buyer, purchase terms and payment plans are drawn. Payment plans will change according to the purchased property. For instance, for properties that just require the finishing materials to move in, a payment of 60% of the purchase price + taxes (VAT, stamp duties and transformer fee) must be paid at the time of signing the contract, whereas for properties that are under construction this amount goes down to 30%. Furthermore, loans with and without interest rates with a variety of installment options may be provided by Noyanlar Group of Companies.

03

Signing the Purchase Contract

The registration procedure of the Sale and Purchase Agreement for properties is done by a solicitor. It is therefore essential to hire a North Cyprus based solicitor. The solicitor’s role is to advise you, release payments upon your approval to the Developer if needed, apply to relevant Government Offices for your permissions to buy a property in North Cyprus, act on your behalf in your absence with the Power of Attorney, confirm title deeds including all governmental documentation, and ensure that a proper Contract of Sale is drawn up and made between you and the Developer. A contract of sale is then drawn up by your solicitor, setting down the terms of sale, i.e. property details, specifications of property, site plan of the property, governmental site plan of the land in North Cyprus, floor plans, price, payment terms, timescale, vendor, purchaser and any extra requirements. The prepared contract is then signed between the Seller and the Buyer.

04

Purchase Permit and Fees

A permit to purchase from the Council of Ministers in North Cyprus is then applied for by your solicitor. This may take around 12-18 months to be clarified. Once the permission is granted, the purchaser is entitled to register his or her name at the Land Registry as the registered legal owner of the North Cyprus Property. Again, in the absence of the purchaser, a Power of Attorney will allow the solicitor who will, on the clients behalf, deal with all these formalities. Most likely the solicitor will notify you when the permission has been granted and he/she will then fill out all of the necessary land registry valuation forms for the valuation of the property that you have purchased. It is usually at this point that taxes will be payable. The taxes are calculated based on the land registry valuation (usually the open market value of the property on the date the transaction took place) and are currently at the following rates:

Land Registry Transfer Fee at 6% (however, every purchaser has a once in a lifetime option to reduce this fee from 6% to 3%. At the time of transfer, you will be asked whether you wish to use this option and so, you will only pay 3%)

VAT at 5%

Stamp duty is to be paid at 0.5% of the contract value if paid within 1 month upon signing the contract.

Property infrastructure payments which have to be paid and can vary from site to site

The sales process will come to an end when all of the above taxes are paid and the title deeds are registered in your name.

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