A Seller’s GuideBeydola Estates & Construction know that
selling your property is equally as
stressful as purchasing a property
but we are confident that we can give you good
advice and help.
We will:Discuss with you your expectations of what
you hope to achieve and give you our unbiased
opinion on whether we feel this is achievable.
Take photographs, measure the property
and determine which fixtures and fittings
are included in the sale. It is important that
the house is clean and tidy, both the interior
and the exterior, so that our photographs
show your
property at its best.
Prepare colour sales particulars, which will be
displayed
in our office in Ozanköy and on our website.
We will keep you informed of all enquiries and arrange
any viewings, when prospective purchasers will be
accompanied by us, to suit both you and the
prospective purchaser.
Before we are able to advertise your property
we require you to provide us with the following
documents:
Copy of the Koçan (Title Deed), whether this is
in your name or not.
Site plan.
Copy of the sales contract.
Inventory of all fixtures and fittings that
are included in the sale.
Your contact details and those of your lawyer.
One of the questiýons frequently asked is whether
you will have to pay Capital Gains Tax. Capital Gains
Tax, which is payable to the Tax Office, is payable by
the vendor. However, the rules are different for private
individuals and professionals.
Private individuals are allowed a one-off tax free sales
option for property of 1 dönüm or less. However, for
any future sales (up to 3 properties in a year) Capital Gains Tax
is payable at 3.5%. Professionals are classed as those that
sell more than 3 properties a year and they are liable to pay
Capital Gains Tax on every sale at a rate of 6.25%.
If the Koçan (Title Deed) has not been transferred to your
name at the time of sale you must undertake an Assignment
of Contract and your lawyer can assist with this.
A Buyer’s GuideThe process of buying a property or land in Northern Cyprus depends entirely on what
type of title deed it has. As you may or may
not be aware, there are several different types
of title deeds, which are:
Turkish Title
These lands/properties were Turkish Cypriot
owned prior to 1974.
Foreign Title
These lands/properties were Foreign owned
(British, German, American etc) prior to 1974.
TRNC Title (Esdeger – Exchange Title)
These lands/properties were Greek owned prior
to 1974. Following the liberation of the Turkish
Cypriot people in 1974 they were forced to migrate
to the North of the island leaving everything
they owned in the South. The Government
awarded these Turkish Cypriots properties/lands
according to the value of the properties/lands they
had had to leave in the South. These were awarded
on a points basis and based upon the amount of points
awarded these Turkish Cypriots could take Greek Cyprýot
properties/lands to the equivalent of that which they
had left ýn the South. Their properties/lands in the
South were signed over to the TRNC government
who are holding them until a settlement is agreed
between themselves and the government of South
Cyprus. The Turkish Cypriot owners of these former
Greek Cypriot properties/lands were then issued
with a Title Deed but were unable to sell such
assets until this was issued.
TMD Title
These lands/properties were Greek Cypriot owned
prior to 1974 and no Title Deeds have yet been issued.
These lands/properties are usually offered for
sale at lower prices.
Leasehold
These properties are more often than not derelict
and may be leased by foreigners from the
Government for up to 49 years. A nominal ground
rent is paid but the properties must be renovated
by the lessee at their o
wn expense.
PLEASE NOTE Foreigners are only allowed to
purchase 1 property/land up to an area of 1 dönüm
(0.33 acre) of land per person
(married couples are counted as 1 person unless they
have different surnames).
THE PURCHASE PROCESS
Prior to coming out to Northern Cyprus to choose
your dream home, ensure you have at least £1,000
available, either cash or credit card as, should you find
the house you are looking for you will need to pay a
reservation deposit to ensure that it is taken off the
market. Although this deposit is generally non-refundable
, it will be deducted from the total cost.
Have some idea of what you require, ie number
of bedrooms, whether views are important,
an apartment or a villa, is a swimming pool
a necessity, etc, etc, and let us know of your
preferences before you visit. This will help us to
arrange viewings to only appropriate properties.
Please also remember that you need to budget
approximately 10% on top of the purchase price
to cover other expenditure such as Stamp Duty,
Transfer of Title
and
VAT charges.
Once you have found your ideal property and the
purchase price has been verbally agreed, we would
recommend you to one of several lawyers who will
guide you through the legal processes. They will tell
you what their charges are for this service and
generally these are between £1,000-1,200.
At this stage it will be necessary to pay the
reservation deposit. The lawyer will check the Title Deed to
see that
there are no charges against the property/land you wish to
purchase,
such as mortgages or debts of any kind, injunctions etc.
Once your lawyer is sure there are no outstanding issues with the
Title Deed, a Contract of Sale will be drawn up. This will show
details
relating to the property, payment schedule, any extras that have
been
agreed, and details of what you and the vendor are
liable to pay with regard to taxes, installation of water and
electricity
supplies, if applicable, and any other relevant information.
Payment
schedules vary according to the property you are purchasing.
Generally a 10-30% deposit will be paid at this time.
If you are purchasing an off-plan or partially built property then
payments
are normally due at specific stages of construction.
If you are purchasing
a resale property or newly completed property then the
whole amount
will be due on signing of contract. If your intention is to
return to your
home country before all formalities are dealt with then it is
necessary
for you to provide your lawyer with a Power of Attorney
to enable
him/her to act on your behalf in your absence.
In addition to this your lawyer will make representation to the
Council of Ministers for their permission to allow you to
purchase
your property. This process can take anything up to 2 years,
although the government is working hard to reduce this time.
It is necessary for you to acquire a Subject Access Form from
your local Police Headquarters
(or you can download this from the web)
and submit this as instructed.
The original of this should be sent to your
lawyer in order for him/her
to make representation. Should you be refused permission,
which is very unlikely, there are other options which your lawyer
will explain to you. However, this should not deter you from going
ahead with your purchase as all foreigners have to undergo this,
and once the Council of Ministers give their approval the
Title Deed will be issued in your name.
The various taxes that have to be paid are as follows:
Stamp Duty
Stamp Duty is currently 0.5% of the contract price of the
property
if paid within 1 month of the contract date.
This then increases to 1%, and after 6 month 1.5%.
This is payable by the purchaser and should be paid to the
Tax Office. A copy of the receipt and a copy of your
contract should be taken to the Land Registry Office
in order to lodge the
contract. At this time the Land Registry Office will carry out
relevant
searches on the land and the
Title Deed.
VAT
At the present time VAT (currently at 5% of the contract price)
is paid by the purchaser to the vendor, who takes this plus the
Capital Gains Tax (currently at 6.25% of the contract price)
which is payable by the vendor to the
Tax Office when the purchaser’s permission to purchase
has been
approved. A receipt is given and a copy of this is taken to the
Land Registry Office where the purchaser must pay the
Transfer Fee in order to obtain the Title Deeds in his/her name(s).
The Transfer Fee is currently 6% of the contract price.
As a first-time purchaser you have the option to pay just 3%,
however, if you take this option any further purchases you
make will be charged at 6%.
Of course, purchasing any property can be a stressful process,
whether in your home country or abroad, and some of the
above
may make you feel as if there is a lot to take in,
but we at Beydola Estates
will endeavour to make the whole process as stress-free as
possible,
whatever type of property you choose.
This information is for use as a guideline only and no liability
can be taken for changes in government policy or other with
regard to the purchase of property in Northern Cyprus.