Explore the market with Freedom and decide which property you would like to buy.
Take advice and give power of attorney to a local lawyer in Northern Cyprus who will handle all your questions about the buying process and who can establish a will for your future well-being. We do not favour any particular law firm and we have a list of recommended lawyers for our buyers who we have used before and have been satisfied with their services and advice.
i) Agree the price, terms of payment and receive a written confirmation of all additional extras and specifications – Freedom will assist you throughout this process to agree on the best terms with you and the developers or vendor.
- Most developers in North Cyprus will offer up to 3 years interest FREE for off plan projects, and they may even offer an extended period beyond this at very low interest rates.
- A typical payment plan looks like this:
£2000 Reservation Fee (Non-refundable)
– 35% on contract agreement (normally within 1 month)
– 20% on foundation completion
– 20% on Skeleton completion
– 20% on windows and tiling
– 5% on completion or key handover
Points 3,4,5,6 are normally over a 24-month period off plan, however it’s wise to negotiate with the developers to find a plan that suits you, and if you are buying a completed property which is key ready to move in, then a specific payment plan will be needed.
There are always extra costs involved when buying a property abroad, such costs would include:
- Electricity transformer contribution
- Water infrastructure contribution
- Electricity and Water meter deposits
- Lawyer and Power of Authority fees
- VAT/KDV (on new builds and some services)
- Furniture packs and kitchen appliances/AC units/Heating
- Bank transfer fees
- Title transfer fees
ii) Reserve the property by paying a standard reservation fee of £2,000 (normally non-refundable) to remove the property from the market. You will get a receipt for your payment and confirmation of your purchase to give to your lawyer.
iii) Your lawyer will check all the paperwork regarding your property and do all the enquiries on your behalf, and keep you informed of the process via written confirmation.
iv) Your lawyer will establish and verify the purchase contract to be signed by you and the developer or vendor. The lawyer will ensure that all conditions are included from the original agreement and all governmental paper works/permits are in place and valid.
v) You will have approximately 14 days subject to your reservation agreement to pay / transfer the deposit according to your purchase contract. Your lawyer will only sign your contract on your behalf with your written permission once you are happy with the content.
vi) Once the contract is signed, it will be registered at the Land Registry Office (TAPU) as proof of your legal interest in the property. At this time, a stamp duty of 0.5% of the property price is paid and a registration fee of approximately £140. Once this is completed, no other person/business can register an interest in this property.
vii) Your lawyer will also apply to the Council of Ministers, you will need to submit a criminal records document from your home country for your permission to purchase contract to be processed.
viii) Once your permission to purchase has been granted and the project is completed you will be able to take transfer of title. On the day of completion, your lawyer will request documentation on the payments made, together with payment of Title Transfer Tax (6% which is reduced to 3% for a first purchase).
Do you have any questions please feel free to contact us.