The process involved in the purchasing of property depends upon which type of property you intend to purchase.

For properties purchased under freehold ownership, the purchasing process will usually be the following:

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• The first step will be a meeting with a local lawyer, that you will appoint to assist you with all paperwork. You will give him all information about the property you intend to buy, and about any informal agreements you have made with the vendor regarding price, included items and payment schedule. You may also take a power of attorney (POA) to ensure that the lawyer can act on your behalf to sign documents and other administrative obligations, if you are away from Northern Cyprus for a long time. Of course, nothing can be done without your acknowledgement. Having been given power of attorney, the lawyer will also attend to further work, such as the application for the permission to purchase. This authorisation, delivered by the Council of Ministers, is compulsary to purchase a property in North-Cyprus. It is the final step before obtaining the “Kocan” (the deed). In order to obtain the permission to purchase, a police check in your own country will be required from you.
• You will usually have to pay a deposit amounting to 5% – 10% of the sales price, to secure the property, while the documents are checked on the property and contracts prepared. Unless there should be a problem with any of the paperwork on the property, a deposit is normally non refundable, as it is the guarantee that the seller’s intention is serious.
• The contract of sale will then be prepared, including all important details such as property identification and description, price, payment schedule, completion date with penalty clauses (in case of late completion, for off plan projects). For development projects, all floor plans and property specifications will be attached to the contract.
• The next step is to send the money to your lawyer, for the property as agreed, plus the legal 0.5% stamp duty, and 5% VAT (if applicable).
• Once completed, the contract will be sent for review to the buyer and vendor. Any changes will be implemented and checked again, until both parties are happy with the contract, which can then be signed.
• Within 21 days of contract signature, the stamp duty will have to be paid. Northern Cyprus stamp duty is rated at 0.5% of the contract price. It is important to respect the deadline, otherwise the rate becomes 1.5%.
• Then, the contract of sale has to be registered at the land registry. Once this registration is done, the purchaser is then protected.
• To register the contract of sale, the land registry requires the original and a copy of this document, the site and seating plans and a copy of the title deed, a copy of the stamp duty receipt and copies of the identification for both parties. When the seller is a company, the company documents together with an application form and the appropriate fee are required. The registration at the land registry can be carried out either by yourself or by your lawyer. A power of attorney is needed to authorise someone to act on your behalf and carry out the registration in your name.
• Once the contract has been registered, the seller will then receive the money from the lawyer, according to the payement schedule agreed with the buyer.
• Finally, your purchase permission will be granted by the Council of Ministers, and your lawyer will notify you. An official valuation of the property will be made in order to determine the amount of tax due on transfer of title. This amount will be paid and the title deed, also known as the “Kocan”, will thus be registered in your name.  These final steps can be achieved in your name directly by the lawyer assisting you in the purchase, if you have left power of attorney, and you will not have to come to Cyprus.

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